ITIN Number Loan Program
Workers and entrepreneurs currently residing in the United States with an Individual Tax Identification Number (ITIN) issued by the IRS can qualify for the ITIN Mortgage Program instead of a Social Security Number (SSN). For segments of the population where it might be challenging to pursue conventional loan options, an ITIN loan could be a consideration. ITIN loans are a unique kind of loan for individuals that may not have the traditional documentation needed to obtain mortgage loans. ITIN loans can be 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 with their ITIN.
- Pay Stub – 1 full month with YTD earnings.
- W-2’s and/or 1099’s – prior two (2) years for all borrowers.
- 1040’s – prior two years, including all pages, schedules, statements.
- Year to Date (YTD) Profit and Loss Statements and Balance Sheets. The P&L and Balance sheet must be prepared and signed by either a CPA/accountant, IRS Enrolled Agent or licensed tax preparer. Self-prepared P&L are not allowed.
- Three (3) months business bank statements no older than the latest three months represented on the year-to-date profit and loss statement.
- If YTD P&L is less than three months, only require those months covered on the P&L.
- 1120S, 1120 and 1065’s – prior two (2) years if General Partner and/or percentage of ownership is > 25%, including all pages, schedules, statements. Self-prepared tax returns are not allowed for Self-Employed borrowers.
- School transcripts must be provided to document.
- IRS Form 4506-C / Tax Transcripts
- Borrowers with multiple ITIN or Social Security number are ineligible.
- Investment Properties may have a prepayment penalty. Prepayment penalties on primary residence and second home transactions are prohibited.
Where permitted by applicable laws and regulations, a prepayment charge may be assessed. The prepayment charge will be 5.0% and applied to any
curtailment or the entire outstanding principal balance during the prepay period. The charge applies to loans that pay off due to sale or refinance.
- Fannie Mae Conventional Conforming loan for borrower(s) that only have a valid ITIN.
- The loan for the property must have a minimum loan size of $150,000.
- A minimum of two (2) years employment and income history
Gaps in employment in excess of 30 days during the past two (2) years require a satisfactory letter of explanation and the borrower must be employed
with their current employer for a minimum of six (6) months to qualify.
For a Borrower who has less than a two-year employment and income history, the Borrower’s income may be qualifying income if the Mortgage file
contains documentation to support that the Borrower was either attending school or in a training program immediately prior to their current employment
- If multiple borrowers, one borrower must have ITIN. Other applicant(s) may have SSN.
- Unexpired government photo ID (i.e. driver’s license)
- Unexpired Passport from country of origin
- 30 Fixed Rate only.
- Primary Residence only.
- Max 95% LTV
- Conforming loan limit, no High Balance.
- Purchase and Rate Term only, no cash-out.
- SFR, 1-4 Unit, PUD, and warrantable condominiums.
- Impounds are required.
Gift Funds are acceptable if ONE of the following applies:
A 10% down payment has been made by the borrower from their own resources
100% Gift Funds are allowed for loans only with a maximum LTV/CLTV of 65%. Borrower(s) must meet reserve requirements
Gift funds may not be used to meet reserve requirements.
Gift of Equity allowed for Primary Residence only and 65% maximum LTV/CLTV.
- Irrevocable or Blind Trusts
- Inter-Vivos Revocable Trust
- Limited partnerships, general partnerships, corporations
- Power of Attorney (POA) not allowed
Benefits of ITIN Home Loans:
- Social Security cards are not required: Having an ITIN means you can use it to get a loan; you do not need to be an American citizen or a green card holder (resident alien.)
- Residency flexibility: For those seeking homeownership but do not have legal residency status in the U.S., lending institutions may work with you to obtain an ITIN home loan instead.
- Credit building: Mortgage lenders report payment history to the credit bureaus. As you make timely payments on your home loan over time, you’ll build positive credit history. Plus, your credit score could improve since payment history is the most significant component of the FICO credit-scoring model.
- With ITIN loans, homeownership does not have to come with hard money loans and significantly higher interest rates compared to ITIN loans.
- It is much quicker to buy a home with an ITIN loan than to spend many years saving up to buy with cash.
The Parham Team believes in educating and engaging our customers throughout the loan process. We look forward to hearing from you to begin that process. Contact us today at 855-326-6802 or schedule a call with a Loan Specialist.