Last Updated on October 1, 2023 by Eric Jeanette
ITIN Loans for 2023
ITIN mortgage loans provide an opportunity at home ownership for undocumented immigrants. Neither citizenship or a social security number are required. To apply for an ITIN loan, you may do so using your ITIN number (individual tax identification number) and documentation of income.
What is an ITIN?
ITINs are primarily used for federal tax reporting purposes. They are assigned to individuals who may need to file tax returns or pay taxes in the United States but do not qualify for a social security number. ITINs are formatted with nine digits and start with the number 9.
One of the challenges that undocumented immigrants face is they do not qualify for conventional or FHA loans due to their residency status. Therefore, getting a mortgage approval to purchase or refinance a home becomes challenging. However, there are a handful of ITIN mortgage lenders who can help.
ITIN Loan Requirements
The exact ITIN loan requirements will depend on the ITIN lender. You should expect to be required to provide the following with any ITIN mortgage lender:
- Credit – Consider the nature of ITIN loans, there are flexible credit requirements. The minimum credit score for an ITIN loan is 600. However, if you do not have a credit score, you can use alternative forms of credit documentation, such as utility and phone bills.
- Employment – You will need to provide proof of 2 years of consistent employment. This can be a W2 job or self employed in your own business.
- Tax Returns – Your lender will want to see the last 2 years of tax returns (W-2 or 1099). Self employed ITIN card holders do not need tax returns.
- Down Payment – Expect to need to put at least 10% down. The minimum down payment requirement will depend on the lender and your credit scores.
- Identification – A copy of your ITIN card, as well as a drivers license or passport will likely be required by any lender.
- Bank Statements – Expect to need to provide between 2-12 bank statements. The exact number of bank statements you will need to provide will depend on the specific lender you apply with.
Would you like to see if you qualify for an ITIN loan? There are bilingual loan officers who can help.
Benefits of ITIN Mortgage Loans
ITIN mortgage loans provide numerous benefits to non-U.S. residents looking to purchase a home:
- Accessible Homeownership: ITIN mortgage loans open the door to homeownership for those who do not have an SSN, expanding opportunities for non-U.S. residents.
- Building Credit History: By making regular mortgage payments, individuals with ITINs can establish and build their credit history within the U.S., improving their financial profile.
- Flexible Loan Options: ITIN mortgage loans offer flexibility in down payment requirements, loan terms, and interest rates, catering to the unique circumstances of non-U.S. residents.
- Diverse Property Types: ITIN mortgage loans can be used to finance various property types, including primary residences, vacation homes, and investment properties.
- Local Community Contributions: ITIN mortgage loans contribute to the growth of local communities by enabling non-U.S. residents to invest in properties and contribute to the local economy.
Understanding the distinctions and advantages of ITIN mortgage loans is extremely important for individuals looking to navigate the home financing process effectively.
Best ITIN Mortgage Lenders of 2023
Below are a few of the best ITIN mortgage lenders for 2023. Keep in mind the lenders change their guidelines often so you should reach out to us here and we will help you.
1.) Dream Home Financing
Dream Home Financing will help match you with a lender who offers ITIN loans for all 50 states. They have access to programs that require down payments as low as 15%. Borrowers can be self employed and can qualify without providing tax returns.
If you need bilingual loan officers to speak with, a gift to cover the down payment, or just need someone to speak with about your loan they can help.
States: Nationwide (all 50 states)
2.) Acra Lending
Acra Lending offers an ITIN program for both purchases and refinances (the max LTV is 80%). The maximum loan amount available is $1,000,000. They do not have any reserve requirements. Contact
States: AL, AR, AZ, CA, CO, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MT, NC, NE, NH, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, & WY.
3.) First National Bank of America
First National Bank of America offers an ITIN program that only requires a minimum down payment of 15%. For income documentation, they allow a borrower to use either their tax returns or bank statements. Contact
States: Nationwide
4.) United Mortgage
United Mortgage Corporation of America offers an ITIN program that allows up to a 85% LTV for first time home buyers. Contact
States: CA, CO, TX, and WA.
5.) ACC Mortgage
ACC Mortgage offers an ITIN loan product, which only requires a 15% down payment (which can be gifted). Contact
States: AZ, AR, CA, CO, CT, DC, DE, FL, GA, ID, IL, IN, MD, MI, MN, MS, NV, NJ, NC, PA, SC, TX, UT, VA, WA, and WI.
6.) Go Alterra
Go Alterra provides ITIN loans with a 20% down payment to qualifying applicants. Contact
States: AL, AZ, CA, CO, CT, DC, FL, GA, IL, IN, IA, KS, MD, MN, NE, NV, NH, NJ, NM, NC, OK, OR, PA, RI, SC, TN, TX, VA, and WA.
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Factors to Consider when Selecting an ITIN Lender
Choosing the right lender is crucial for securing the best terms and conditions for your ITIN mortgage loan. Consider the following factors when evaluating lenders:
- Interest rates and loan terms: Compare the terms, interest rates, and fees, offered by different lenders to find the most favorable options.
- Customer service and communication: Assess a lender’s responsiveness, accessibility, and willingness to promptly address your questions and concerns.
- Loan options and flexibility: Determine if the lender offers various mortgage programs that cater specifically to ITIN borrowers, such as FHA or conventional loans.
- Reputation and credibility: Research the lender’s reputation by checking online reviews, customer testimonials, and their track record in the industry.
Down Payment Requirements for ITIN Mortgage Loans
Down payment requirements for ITIN mortgage loans vary depending on the lender and the type of mortgage program. While traditional mortgages often require a down payment of 20% or more, some ITIN mortgage programs offer options with lower down payment requirement of 10-25%. Exploring different lenders and mortgage programs is important to find the option that best suits your financial situation.
Document Requirements for ITIN Mortgage Loan Applications
When applying for an ITIN mortgage loan, you will need to gather the necessary documents to support your application. These documents typically include:
- Proof of identification: Provide a valid and unexpired passport or national identification card.
- Proof of income: Submit recent pay stubs, tax returns, W9’s, or other documentation that verifies your income and employment status.
- Proof of residency: Show evidence of your current address, by providing an ID or documentation from a lease agreement or utility bill.
- Bank statements: Provide statements from your bank accounts to demonstrate your financial stability.
- Credit history: Obtain a copy of your credit report to assess your creditworthiness.
- Additional documentation: Depending on the lender’s requirements, you may need to provide additional documents, such as proof of assets or a letter of explanation for any irregularities.
Step-by-Step Guide to Applying for an ITIN Mortgage Loan
Follow these steps to apply for an ITIN mortgage loan:
- Research lenders: Find lenders that offer ITIN mortgage loans and compare their terms and requirements.
- Gather documents: Collect all the necessary documentation to support your application.
- Pre-qualification: Get pre-qualified by the lender to determine the approximate loan amount you may be eligible for.
- Complete the application: Fill out the application form provided by the lender, ensuring all information is accurate and complete.
- Submit documentation: Attach all the required documents with the application form.
- Review and approval process: The lender will review your application and documentation, conduct a credit check, and assess your eligibility.
- Underwriting and appraisal: If your application is approved, the lender will perform a residential appraisal of the property and complete the underwriting process.
- Loan commitment: Upon successful underwriting, you will receive a loan commitment in the form of a letter outlining the terms and conditions of the loan.
- Closing: Schedule and attend the closing. This is where you will sign the ITIN loan documents and pay any applicable fees.
ITIN Loan Pros and Cons
Below are some of the advantages and disadvantages of an ITIN loan. You may want to closely consider if this type of program is right for you.
Advantages:
- Available to non-citizens.
- No social security is required. Only a passport, drivers license, or other form of identification.
- The flexible credit requirements allow you to use non-traditional sources of credit.
- No PMI required for down payments less than 20%
- Self employed applicants only need to provide bank statements
- The ITIN loan can be used to purchase a primary residence, investment property, or second home
Disadvantages:
- Rates are usually higher than on conventional loans.
- Larger down payment required (most ITIN mortgage lenders will require a 10-30% down payment)
In most ways, an ITIN loan is similar to other conventional mortgage loans. The only major differences being what is outlined above. If you qualify, and are able to place the required down payment, and can comfortably afford the mortgage payment, an ITIN loan may be your best (and only) choice for a mortgage.
ITIN Loans for Home Equity or HELOC
You are able to cash out equity If you have an ITIN loan and already own a home. You may qualify to refinance your first mortgage as a cash out refinance. This will enable you to have a larger first mortgage while walking away from the closing table with the additional equity you were looking for.
Each lender will have a limit of how much you can cash out as a percentage of the home value. Expect that to be a maximum of 70-75% of the appraised value of the home.
ITIN Loans to Purchase Land
If you are looking to purchase land and have an ITIN number, there is an option for you today. The list lenders who offer land loans for ITIN card holders is very small.
You should expect the requirements to include the following:
- Minimum land purchase of at least $150k
- Minimum down payment of at least 35%
Keep in mind that finding a lender who can offer a construction loan with an ITIN is going to be extremely difficult. We suggest securing construction financing before purchasing the land.
Current Interest Rates for ITIN Mortgage Loans
Interest rates are a major factor when determining mortgage affordability. You should also stay updated on the current rates for ITIN mortgage loans.
As of 2023, interest rates for ITIN mortgages are competitive and vary based on factors such as creditworthiness, down payment, and loan terms.
You can expect interest rates for ITIN loans to be 1-3% higher than conventional rates depending upon your credit score and down payment.
Frequently Asked Questions – ITIN Loans
Can I Buy a House with an ITIN Number?
If you have an ITIN number, you can purchase a primary residence, a second home, or an investment property.
What types of properties are eligible for these loans?
ITIN loans may be used on single family homes, condos, and PUDS.
Can an ITIN loan be used for an investment property?
No, ITIN loans only may be used for a home that is owner occupied (primary residence).
Are ITIN loans available through the FHA?
No, the FHA does not offer any ITIN programs.
Are there any laws against mortgages being issued to borrowers without a SSN?
There are no laws that exist that restrict mortgage loans being offered to non-citizens. It is just that most lending institutions have a preference to only offer loans to borrowers with a social security number. Additionally, neither Fannie Mae, Freddie Mac, or the FHA back these types of loans creating difficulties pertaining to the secondary mortgage market. Thus, only unique types of lenders, namely “portfolio lenders” offer these types of loans.
Does Wells Fargo Offer ITIN Loans?
We contacted one of the Wells Fargo branches to ask about the Wells Fargo ITIN mortgage programs. Unfortunately they do not offer ITIN loans at this time. ITIN loans are something that Non QM lenders offer and it is not part of the Wells Fargo loan portfolio. We will update here once Wells Fargo offers ITIN loans. We also found the same results when we researched Citibank and Bank of America.
Who are the ITIN wholesale lenders?
Wholesale lenders work directly with a broker network and often times do not lend directly do consumers. If you are looking for a lender who can help with your mortgage, please complete this short contact form.
What are the advantages of ITIN mortgage loans?
ITIN mortgage loans provide several advantages. They allow non-U.S. residents and immigrants without a Social Security number to become homeowners. These loans typically have flexible credit requirements and can be a viable option for individuals with limited credit history or no credit score in the U.S.
Are there ITIN Hard Money Lenders?
Most hard money lenders do not accept ITIN applicants, but with the right down payment it is possible to finance a property with hard money and an ITIN number.
Are ITIN mortgage loans available for self-employed individuals?
Yes, ITIN mortgage loans are available for self-employed individuals. However, the requirements may be different compared to those for salaried or traditionally employed borrowers. Lenders may require additional documents such as bank statements to verify your income.
Are there Lenders who have Spanish Speaking Loan Officers?
Some lenders have bilingual loan officers who speak Spanish. They help to make home buyers feel comfortable and taking down the language barrier can help speed up the loan process. Read more about [Spanish speaking loan officers]
What are the differences between FHA and conventional ITIN mortgage loans?
ITIN loans can be either FHA or conventional loans. The Federal Housing Administration insures FHA loans and generally have more flexible credit requirements and a lower down payment. Conventional ITIN mortgage loans may offer different terms and eligibility criteria, but the government does not insure them.
ITIN loans are most popular in California, Colorado, Illinois, Oregon, Texas, Michigan, and Washington state, but ITIN loans are available in all 50 states.
