Purchasing their dream home with a traditional loan can be challenging for undocumented immigrants. However, using ITIN loans makes it possible. Read on to learn how to get a loan without a Social Security number.
What is an ITIN loan?
An Individual Taxpayer Identification Number (ITIN) loan doesn’t use a Social Security number but rather an individual tax number issued by the IRS. An ITIN loan is especially helpful for U.S. citizens who work, live, and pay federal taxes but don’t qualify for a Social Security number.
The Benefits of an ITIN Loan
On top of making homeownership possible for those without Social Security numbers, using one of these loans comes with additional benefits like:
- Building credit: Don’t have an established credit score in the U.S. yet? No problem. An ITIN loan can be a great opportunity to build your credit score as long as you make on-time payments
- Document residency: You don’t have to document your residency
- Lower repayments: While this loan does come with higher mortgage rates than you would with a conventional mortgage, it is still lower than the rates with sub-prime loans
Do You Qualify For an ITIN Loan?
Like any other mortgage application, you must meet some basic requirements to qualify for the loan.
These include a down payment of at least 20% or higher and submitting at least two years of employment history (pay stubs or bank statements) and two years of tax returns.
Most ITIN lenders will require a credit score of at least 600, but you can find others that accept lower rates, but your repayments might be higher. You may find lenders that will even accept non-traditional credit histories like evidence of paying utilities and rent.
ITIN lenders will also take your debt-to-income ratio into consideration, and most will have a threshold of 50%.
How to Apply for an ITIN Loan?
To apply, you’ll need to fill out a W-7 form and supply all supporting documents like employment history, credit score evidence, and past tax returns. Generally, the processing times of this type of loan can take between 6-6 weeks.
Purchase Your Dream Home Using an ITIN Loan With Mortgage Experts in Cape Coral, Florida
Are you ready to start the process of applying for an ITIN loan? Reach out to the friendly team at Island Coast Mortgage to get you one step closer to your dream home in Florida. Call us at 239-214-7011 to schedule your free consultation.
