How to Get a Home Mortgage with a Tax ID (ITIN) Number. Contrary to popular belief, it’s possible to get a mortgage without a social security number or legal status in the U.S. In fact, the U.S. is one of the only countries that allows non-citizens to obtain property.
The house purchasing process is a lot more nuanced to get through, but it’s possible. We want to help you accomplish your dreams of being a homeowner. Read on to learn more about how to receive a home mortgage with your ITIN number.
What Is An ITIN Number?
If you’ve never heard of this term before, you should know that an ITIN number stands for an individual taxpayer identification number. Essentially, this is a nine digit tax number assigned to individuals without prior history as a legal citizen. Legal citizens will enter their tax information through a SNN (social security number) and have no need for an ITIN number.
There are a lot of steps you will need to take in order to get a mortgage with your ITIN. First off, if you pay taxes as an non-citizen and cannot receive a SNN, you may be eligible for an ITIN. ITIN’s are not based off of residential status, so you don’t have to worry about having property prior to the loan.
Getting the Mortgage
If you are interested in applying for an ITIN Loan, you will need to fill out several forms. Some of the forms include:
- Proof of a sustainable amount of income
- Credit history
- Income verification
You will need to show proof of financial credibility to prove you can uphold the loan payments. Requirements will differ based on the loan provider, so make sure to pay close attention to what they ask for.
Along these lines, you will need outstanding financial qualifications in order to secure buying a house. A critical factor to how the qualifications are determined is the provider you choose. Nearly every lender will require considerable documentation to confirm that you will be able to pay back the loan on time.
Challenges You May Run Into
A challenge for many interested applicants is not being able to provide wage documents since most employers do not subit that information. If the worker is paid in cash it is nearly impossible to obtain that information.
Which means if you are an immigrant with an ITIN in the U.S. you must save up a substantial amount of money and present required documents like income payment history to be able to get the mortgage. Rates for ITIN loans can be higher compared to usual rates found in general fixed or adjustable rate loans.
Also note that not everyone with an ITIN in the U.S. is here illegally, some immigrants who don’t have a SSN may be legally residing in the U.S. The process for these individuals will go more smoothly as they tend to have solid income and credit history.
Pre-check List Before Buying a House
You need to be aware that down payments for ITIN loans are higher than most other loans. This amount tends to be at least 20% of the total value of the house. Also, if the lender is already being lent money from an outside source for a down payment, the value of the down payment will increase. As unfair as this may seem, this is done in order to protect the lender if the individual ever happens to be deported in the future.
As stated earlier, you will need to have an ITIN number. If you don’t already have one, you must apply for an ITIN number through the IRS. This form for this is the W-7. From here you need to have documentation of your credit history. Your credit history is built up over time by making payments on auto loans, credit cards or other credit types.
You should also build a consistent rent history. Most ITIN lenders are glad to see 2 years of rent payments as it will help give them more documentation in order to justify the loan. This will help prove you will be able to make future mortgage payments with past data.
Employment history is important too as it is essential to the process. An employment history of at least 2 years is generally a minimum requirement.
How To Go About Buying a House
At this point, you’ll have to find a loan provider that will accept ITIN numbers. The next step would be to get pre-approved for the loan. This process involves the lender gathering your credit history. Most lenders require substantial credit history but others may take utility bills and rental records. Once you pass the pre-approval from your lender you can finally start searching for the house you want that fits within your pre-approval budget.
Ready To Get Started?
Ready to get started? We know it is a daunting process to get through but that’s why we’re here to help. Our office is located in Natick/MA.
Are you ready to take the next step to buy your home and start building a legacy for your family?…Let me help you!
I am a Brazilian Licensed Realtor at Re-Connect, LLC with 17+ years of experience in the Real Estate industry. I speaks 3 languages (Portuguese, English, Spanish)