ITIN Loans: How to Own a Home Without a Social Security Number

For borrowers without a social security number, finding suitable loan options can be incredibly difficult. Individual Taxpayer Identification Number (ITIN) loans are designed for borrowers who do not have a Social Security Number, but can provide an ITIN number as a form of identification, serving as a viable option for families looking to own a home. 

What is an ITIN Number?

An Individual Taxpayer Identification Number (ITIN) is a unique identifier issued by the IRS to individuals with U.S. tax obligations who aren't eligible for a Social Security Number. 

Benefits of ITIN Home Loans

No SSN Requirements: Traditional mortgage loans often hinge on the possession of a Social Security card. ITIN loans offer a viable alternative for mortgage qualification.

Sustainable Repayment Terms: Unlike alternatives such as hard money loans, ITIN loans often offer more sustainable repayment terms. 

Credit Building Opportunities: ITIN home loans not only pave the way to homeownership but also serve as a catalyst for credit building. Timely repayments contribute to a healthy credit score, laying a sturdy foundation for future financial endeavors.

ITIN Loan Availability and Requirements

Borrowers with an ITIN that can prove legal residency in the United States are eligible for a conventional mortgage through Fannie Mae. ITIN borrowers will need to qualify under the same terms available to U.S. citizens.

Outside of Fannie Mae, the application process for ITIN mortgage loans may have slightly different requirements and documentation than traditional mortgages. To obtain an ITIN loan, you will need to work with a lending institution that offers these types of mortgage loans.

• ITIN loans may be available for single-family residences, condos, townhomes, and multiple units in residential buildings. 
• Up to 85% LTV, depending on credit and other qualifying factors. 
• No legal proof of residency required. Typically, borrower identification is required, such as a Photo ID (driver’s license) and valid ITIN Letter/ Card. 
• Full or alternative income documentation options may be available. 
• No Credit Score loans may be available, however; these loans may include a reduced LTV and other potential restrictions.
• Additional credit, income, and other qualifying factors may apply. 

How to Get an ITIN Loan

Borrowers will need to fill out Form W-7 (Application for IRS Individual: Taxpayer Identification Number). Additionally, you will need to provide supplemental documentation, including tax returns that confirm that you are a non-resident in the U.S. 

Borrowers may need to provide additional documentation, including identification documents such as an ID card, birth certificate, or driver’s license, as well as medical and/or school records with your W-7. The more identification you can provide, the easier the application will be to process. 

The purpose of the form is to tie your documents with your identification, verify it with the information on your tax return, and assign a number accordingly.

The processing time varies for receiving ITINs, but generally, you should have an outcome to your application within 4-6 weeks.

Closing Thoughts

With an ITIN loan, homeownership does not have to come with hard money loans and unsustainable terms. You can work with your lending institution to identify and apply for an ITIN loan that works for your circumstances long-term. Call or visit us online to determine if an ITIN loan is the best solution for your family today.