When applying for most mortgages, you’ll need to give the lender your Social Security number for identification purposes. But what happens if you don’t have a Social Security number?

For undocumented immigrants without a Social Security number, applying for a traditional mortgage presents numerous challenges. That’s why ITIN home loans exist, and here’s how to get one.

What’s an ITIN Loan?

An Individual Taxpayer Identification Number (ITIN) is a type of loan option that uses your individual tax number issued by the IRS if you don’t qualify for a Social Security number.

This loan is for people who aren’t U.S. citizens but work and live in the country paying federal taxes.

How To Apply For an ITIN Loan

To apply for this home loan, you will need to start by filling out Form W-7 and providing supplemental documents like tax returns to confirm your status as a non-resident. Other documents you will need to supply include:

• Proof of income/employment: This will include documents like bank statements and profit/loss statements. 
• Credit history: While there is no set minimum score, most lenders will require a credit score in the high 600s. Some lenders may even accept a non-traditional credit history of evidence of paying rent and bills.
• Debt-to-income ratio: Like most mortgages, your DTI will majorly determine if you qualify for an ITIN loan. Most lenders will have a threshold of 50%.
• Down payment: ITIN lenders will require a down payment of at least 20%, and it’s not uncommon for this amount to be higher with this type of home loan.

The processing times of an ITIN loan usually take between 4-6 weeks. 

Benefits of an ITIN Loan

Besides being a path to homeownership for those without Social Security numbers, having this type of loan comes with some other benefits you should consider like:

• Building credit history: If you don’t have an established credit score yet in the U.S., this loan can be a great opportunity to build your credit score with on-time payments

• Sustainable Repayment: Granted, this type of loan does come with higher mortgage rates, but they’re still lower than other alternatives like hard money loans and sub-prime loans. 

Schedule Your Free ITIN Loan Consultation Today

Are you ready to purchase your dream home in Cape Coral or anywhere in sunny Florida with Island Coast Mortgage? Schedule a free consultation with us so we can talk you through the ITIN loan process by calling us at (239) 214-7011.