Foreign nationals, who are either U.S. residents or nonresident aliens with an individual tax identification number (ITIN), cannot qualify for a conventional loan. ITIN loans are a unique kind of loan for individuals that may not have the traditional documentation needed to obtain mortgage loans. ITIN loans are also a suitable option for individuals who do not have a Social Security Number. Using their ITIN, these individuals have a path toward homeownership as they can get a mortgage loan.
ITIN Loan Requirements
ITIN loans may be available for single-family residences, condos, townhomes, and multiple units in residential buildings. The lending institution’s requirements for the ITIN loan may differ as well as the total amount they are willing to lend.
some core components of ITIN home loans will likely include:
- Identification: Alongside your ITIN card, lenders may ask you to provide additional documentation to verify your identity, such as a driver’s license or other identification.
- Credit score: ITIN loans may have more flexible credit score requirements compared to other types of mortgage loans, but some lending institutions may give it greater focus in the application process. If you have a lower credit score, lending institutions may still work with you to obtain the mortgage loan but may require additional information on existing debt and current payments.
- Proof of employment: ITIN home loan applications will need to show a minimum of 2 years of consistent employment history; this can also include self-employment.
- Tax returns: The ITIN home loan application will also require two years of tax returns.
- Other financial documentation: Some Lenders will want to see any additional financial information that can support the application and prove that you will be able to make your monthly payments, including bank statements and any other relevant assets. Savings in a U.S. bank account may also be included in the application as further proof of finances.
- Down payment: The amount needed for the down payment with ITIN mortgage loans will differ based on the lender’s guidelines, but it’s usually higher than other types of mortgage loans. A minimum of 20% down payment should be the expectation when applying for ITIN home loans.
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