How to Get ITIN Mortgage Home Loans in the U.S.

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Every individual, whether young or old, occasionally has a vivid picture of what their dream home should look like. It all boils down to having a beautiful place you can call your own. However, some constraints make this feat quite challenging. You will usually need to take out a loan to purchase a home. However, there are various kinds of mortgage home loan lenders, but not all can grant you a loan without a social security number. Contrary to this common belief, you can easily purchase a home in the United States. In addition, a few mortgages will grant you loans without a social security number or legal status. All that is required is your ITIN number. This guide will walk you through the process of applying for mortgage loans in the U.S. with your ITIN number, the pros and cons involved, necessary qualifications, and properties considered under this mortgage loan plan.

ITIN Mortgage Loans Program Explained

The ITIN mortgage loan is a specific loan plan available to people without their social security numbers. It offers tremendous benefits to those who are not qualified for conventional loans. Therefore, if you do not have a social security number, you can approach a Mortgage institution with your ITIN card to acquire a home in the USA. To apply for an ITIN mortgage loan, you must present your ITIN number and other necessary documents confirming your eligibility.

What is ITIN?

The Individual Tax Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are required to have a Tax-ID but are not eligible to receive a social security number. The ITIN number helps the tax authorities in processing federal tax returns. Once you have an ITIN, a social security number will not be required. The IRS provides ITINs to both residents and undocumented immigrants who should have a U.S. tax identification number. If you need to document your tax returns, you must have an ITIN number.

Steps to Obtaining an Individual Taxpayer Identification Number in the United States

To assist you in getting your dream home, you first need to know how to apply for an individual taxpayer identification number (ITIN). Follow these guidelines to begin your application process.

Step 1: Determine The Best Time to Apply

Application for a Tax-ID number can be made any time of the year; however, you must file your current tax return before its due date on April 15th. When the tax return is filed after this deadline, you may be prone to some penalties/interest.

Step 2: Begin the Process

Apply using the W-7 Form and include all required documents such as National Identification Card, U.S Driver’s License, Visa, Foreign Driver’s License, Civil Birth Certificate, U.S. Military Identification Card, U.S State Identification Card, School Records, or Medical Records.

Step 3: Mail Your W-7 Form

Once you fill out the W-7 form, the next step is to mail it to the address listed in the W-7 form alongside your tax returns and other documentation.

Step 4: Receive Your ITIN

Suppose your application was duly completed, and you qualify to be issued an Individual Tax Identification Number. In that case, you will get a letter from the IRS in 4-6 weeks, providing an assigned number.

Who is Eligible for an ITIN Loan?

Before you qualify for an ITIN loan, there are certain criteria you must meet.

  • Depending on your credit score, you must have a minimum down payment of 15%. However, the actual percentage is dependent on your credit score, and the mode of financing is cash or gift money. In addition to the down payment of 15%, many banks in America accept tax returns, credit card statements, and bank statements as documentation for a loan.
  • You need two years of employment history and one year of proof of income.
  • Provide the last 30 day’s pay stub as evidence of employment.
  • You can qualify using your bank statements of 12 months as against tax returns if you are self-employed.
  • A minimum credit score of 600 is required but not mandatory. You can apply for an ITIN loan without a credit score.

The Application Process for ITIN Home Loans

Properties Levied Under an ITIN Loan

Before requesting an ITIN home loan, you should know the properties built to cater to ITIN holders. The properties levied under an ITIN loan include:

  • Townhouses or row houses
  • Single-family detached home
  • 2-4 units residential properties
  • Condominiums

ITIN Mortgage Loan Requirements

How to Obtain an ITIN Loan Through Mortgage Lenders

The following pointers will assist you in securing a loan through ITIN mortgage home loans.

Budget Evaluation for Your Home

When applying for a home loan, you must consider the monthly payment requirement and not focus on the purchase price. You will be required to repay monthly after obtaining an ITIN home loan. Therefore, put to heart the following when applying for an ITIN loan:

  • The mortgage principal and interest rates
  • Real estate taxes
  • Homeowners association due if requested
  • Homeowner’s insurance premiums

Apply for an ITIN Loan Promptly

A forehand approval of an ITIN loan provides you with certainty and a summation of how much you can get for mortgage loans before you begin searching for a house. In addition, this helps real estate brokers ascertain if you know what you want from the start, placing more credibility on your side.

Documents Required for ITIN Loan Approval

If you are a foreign national and possess an ITIN card, verifying your ITIN loan approval will require three documents: income statements, identity verification, and evidence of assets such as savings or stocks. Also, if you are a non-citizen, the below documents are required along with the ones stated above:

  • Passport
  • Valid U.S. Visa
  • A Completed International Credit Report (ICR) form issued by the ITIN mortgage bank
  • Primary residence history of two years

Research and Create Offers on Your Home

The next step is to search for your preferred home. Ensure you find an experienced agent; we recommend one with a CIPS designation, so he can provide you with the best offer and ease while house hunting. Once you see the property you prefer, the next step is to make an offer and create an agreement to purchase the property. During this stage, you would be asked to make a deposit, which is a certain percentage of the agreed price of the property.

Conclude Your ITIN Loan Application

Once the offer stage has been concluded, the ITIN mortgage process starts. Here, you will decide on a down payment amount and repayment duration. After that, your loan officer will give you an estimate of your mortgage loan amount within three working days.

Interest Rates on ITIN Loans, Loan Process, and Underwriting

In the United States, the interest rates on mortgage loans usually change with changes in the bond market. To ensure your interest rates remain the same, consider locking your mortgage rate after accepting the loan estimate. Once you receive your loan estimate, your loan application file is submitted to an underwriter. The underwriter verifies your job status, assets, income, and other relevant information to decide whether your loan application should be accepted or not.

Property Appraisal and Closing Disclosure

Your lender will verify your real estate property appraisal report during the underwriting process. Property appraisal protects the lender and buyer by ensuring the property is worth its face value. After the underwriting process is concluded, you will receive a closing disclosure from your loan officer three days before signing the mortgage loan documents. Some required documents at closing are a copy of your closing disclosure, photo I.D., necessary cash, and other paperwork.

Non-Qualified Mortgage (QM) Loans

From the foregoing, it is indicated that to obtain ITIN loans, borrowers must meet certain eligibility criteria. However, as a non-citizen of the United States, it may be challenging to meet up with the requirements needed to qualify for ITIN mortgage loans, such as income verification. To give non-citizens an equal chance of obtaining home loans in the U.S. we offer Non-QM loans to even the eligibility field for borrowers. A Non-QM loan gives you the ability to obtain loans using alternative income documentation, such as bank statements, profit or loss statements, and assets. It is an excellent option for borrowers with little or no credit and who are seeking alternative mortgage solutions to purchase real estate. Our Non-QM loan programs can be obtained by both SSN and ITIN holders using our alternative income documentation options for home refinancing.

Frequently Asked Questions on ITIN Loans

Is ITIN equivalent to SSN?

No! The IRS issues the Individual Tax Identification Number to individuals not are incapable of getting a Social Security Number.

Can I get an SSN if I have an ITIN?

You can get an SSN even if you have an Individual Tax Identification Number.

Bottom Line

In this guide, we have explained the possibilities of obtaining ITIN mortgage home loans in the U.S. and also provide you with information on what the application process entails to enable you to have a smooth experience when applying for an ITIN loan. Contact us at Secure America Mortgage for further inquiries.