What is a ITIN loan?
Individual Tax Identification Number (ITIN) loans are for borrowers who do not have Social Security numbers. Borrowers with ITIN cards can qualify for a mortgage as long as they meet the eligibility requirements. This loan product is a full doc non-QM mortgage offering flexibility for individuals residing in the United States.
How do I get an ITIN?
To obtain an ITIN (Individual Taxpayer Identification Number), follow these steps:
1.Get Form W7: Obtain the Application for IRS Individual Taxpayer Identification Number (Form W-7) from the IRS website or by calling their helpline.
2.Complete the Form: Fill out Form W-7 accurately, providing all the required information.
3.Gather Documentation: Gather the necessary supporting documents, such as proof of identity and foreign status, as listed by the IRS.
4.Submit the Application: Submit your completed application and supporting documents either by mail or in person at an IRS Taxpayer Assistance Center.
5.Wait for Processing: Wait for the IRS to process your application, which typically takes 4 to 6 weeks.
6.Receive the ITIN: Once approved, you will receive your nine-digit ITIN from the IRS, which you should keep in a secure place for tax-related purposes.
Note that individual circumstances may require additional steps or documentation, so it’s advisable to consult the IRS website or seek professional guidance for specific guidance.
ITIN Home Loan Requirements
- Identification: In addition to your ITIN card, lenders may request additional documentation to verify your identity, such as a driver’s license or other forms of identification.
- Credit score: ITIN loans often have more flexible credit score requirements compared to other mortgage loans. If you have a lower credit score, lenders may require additional information regarding your existing debt and current payments.
- Proof of employment: ITIN home loan applications typically require a minimum of 12 months of consistent employment history. This can include self-employment as well.
- Tax returns: The ITIN home loan application will necessitate two years of tax returns to establish your financial stability and ability to repay the loan.
- Other financial documentation: Lenders will also want to review additional financial information that supports your application and demonstrates your ability to make monthly payments. This may include bank statements and any other relevant assets. Savings in a U.S. bank account can serve as further proof of your financial position.
- Down payment: The amount required for the down payment with ITIN mortgage loans will vary depending on the lender’s preferences, but it’s typically higher compared to other types of mortgage loans. When applying for ITIN home loans, it’s advisable to expect a minimum down payment of 20%. In cases of a lower credit score, a down payment of 25% may apply.