How to Get a Home Mortgage with a Tax ID (ITIN) Number
How to Get a Home Mortgage with a Tax ID (ITIN) Number
Updated 8/12/2023 by Prysma Lending Group, an ITIN loan mortgage lender in CT, NY, MA, and FL
Contrary to popular belief, it’s possible to buy a house without a social security number or legal status in the U.S. In fact, the U.S. is one of the only countries that allows non-citizens to obtain property.
The house purchasing process is a lot more nuanced to get through, but it’s possible. We want to help you accomplish your dreams of being a homeowner. Read on to learn more about how to receive a home mortgage with your ITIN number.
What Is an ITIN Number?
If you’ve never heard of this term before, you should know that an ITIN number stands for an individual taxpayer identification number. Essentially, this is a nine-digit tax number assigned to individuals without prior history as a legal citizen. Legal citizens will enter their tax information through a SSN (social security number) and have no need for an ITIN number.
There are a lot of steps you will need to take to get a mortgage with your ITIN. First off, if you pay taxes as a non-citizen and cannot receive an SSN, you may be eligible for an ITIN. ITIN’s are not based on residential status, so you don’t have to worry about having property prior to the loan.
Can I Buy a House with ITIN Number?
Yes, in the United States you can buy a house with an ITIN number, whether you have a SSN or not. The requirements for purchasing a house with an ITIN (Tax ID) Number are the following:
1. You must be able to make a down payment on the house as high as 15%. The financing can come from cash and gift money, and the amount that must be paid depends on credit score. Depending on the lender you partner with for your loan, you may be able to use tax returns, credit card statements, and bank statements as documentation for your loan. One month of proof of payment may also be used as evidence of employment.
2. Two years of employment history associated with your ITIN number, along with at least two years of tax returns.
3. Generally, a minimum of 600 credit score is required to be qualified, but under some circumstances and for some people, an ITIN loan can be qualified for without a credit score.
Located in CT, NY, FL, or MA? Learn about how Prysma has helped thousands of people purchase a home with their ITIN number.
Buying a House with an ITIN Number
In the United States, you can buy a home with an ITIN number, and a social security number (SSN) is not required. The steps to apply for an ITIN loan are as follows:
- Obtain a Tax ID Number (ITIN). For more information on how to obtain your ITIN, visit our Ultimate Guide to ITIN Loans.
- Gather documentation (see "Getting the Mortgage Loan" section below) such as proof of income, credit history, and bank/credit statements. Acceptable identification documents can include: National Identification Card, Civil Birth Certificate, U.S. Driver’s License, Foreign Driver’s License, U.S. State Identification Card, U.S. Military Identification Card, Visa, Medical Records or School Records.
- Find a ITIN loan lending partner such as Prysma Lending Group who has helped many non-citizens in the United States realize their dream of home ownership. Para Español visitar aqui.
- Enter the pre-approval process. The lender will begin by briefing you on the details of the loan and reviewing your credit history to make sure you understand the terms. This credit history is assessed by looking at your actual credit that can be gained by the use of an ITIN and making successful transactions, or looking at rental records/utility bills.
- Locate your home. Once you've qualified, you're ready to find the dream home for you and your family.
Can I Buy a House with my EIN Number
The simple answer is no. An EIN number is assigned for identification when paying taxes, and can be used to apply for business loans, but not personal loans. So for the purposes of obtaining a home loan, this number does not apply, however it may be beneficial to obtain an EIN for other verification purposes.
In most cases, seeking an ITIN (Tax ID) loan is the appropriate options for non-citizens seeking to purchase a home in the United States. ITIN loans can be obtained without a social security number. Learn more here.
To clarify:
- EIN numbers are used for tax paying purposes
- EIN numbers can be obtained by both citizens and non-citizens
- EIN numbers can be used to obtain a business loan, but not a personal loan
- EIN numbers cannot be used to obtain a home loan
Do You Need a SSN to Buy a House?
No, you do not need a social security number (SSN) to buy a house in the United States. A popular option for people without social security numbers that are interested in purchasing a home is buy obtain an ITIN (Tax ID) loan.
Tax ID (ITIN) loans are mortgage loans that are obtained through an Individual Tax ID Number (ITIN) as opposed to a social security number. ITIN loans make it possible for non-citizens to purchase a home in the U.S.
In order to purchase a home without a SSN, you'll need to qualify for an ITIN loan. Qualifications differ by state but follow a similar set of requirements which are outline below:
- Proof of income, ideally with the same employer for at least two years
- Strong Credit history
- Verification of income through various sources
- Bank statements
- Legal identification
- You will need to show proof of financial credibility to prove you can uphold the loan payments.
Getting the Mortgage Loan
If you are interested in applying for an ITIN Loan, you will need to fill out several forms. Some of the forms include:
- Proof of a sustainable amount of income
- Credit history
- Income verification
- Bank statements
- Form of identification
- You will need to show proof of financial credibility to prove you can uphold the loan payments. Requirements will differ based on the mortgage lender, so make sure to pay close attention to what they ask for.
Along these lines, you will need outstanding credit scores and financial qualifications in order to secure buying a house. A critical factor in how the qualifications are determined is the mortgage lender you choose. Nearly every loan officer will require considerable documentation to confirm that you will be able to pay back the loan on time.
Challenges You May Run Into From Lending Institutions
A challenge for many interested applicants is not being able to provide wage documents since most employers do not submit that information. If the worker is paid in cash it is nearly impossible to obtain that information.
This means that if you are an immigrant with an ITIN in the U.S. you must save up a substantial amount of money and present required documents like income payment history to be able to get the mortgage. Rates for ITIN loans can be higher compared to usual rates found in general fixed or adjustable rate loans.
Also note that not everyone with an ITIN in the U.S. is here illegally, some immigrants who don’t have an SSN may be legally residing in the U.S. The process for these individuals will go more smoothly as they tend to have solid income and credit history.
Can I get an FHA Loan with ITIN number?
Yes, you can get an FHA loan with your ITIN number, but only if you also have a valid Social Security Number. FHA loan rules state that all borrowers must have a valid Social Security Number (SSN). In other words, you can obtain an FHA-insured loan with an Individual Tax ID Number (ITIN), but only if you have a valid social security number. For non-citizens, the borrower will also need to provide an employer authorization document (EAD).
Pre-check List Before Buying a House
You need to be aware that down payments for ITIN loans are higher than most other loans. This amount tends to be at least 20% of the total value of the house. Also, if the lender is already being lent money from an outside source for a down payment, the value of the down payment will increase. As unfair as this may seem, this is done in order to protect the lender if the individual ever happens to be deported in the future.
As stated earlier, you will need to have an ITIN number. If you don’t already have one, you must apply for an ITIN number through the IRS. The form for this is the W-7. From here you need to have documentation of your credit history, bank statements, and other identity documents. Your credit history is built up over time by making payments on auto loans, credit cards, or other credit types.
You should also build a consistent rent history. Most ITIN lenders are glad to see 2 years of rent payments as it will help give them more documentation to justify the loan. This will help prove you will be able to make future mortgage payments with past data.
Employment history is important too, as it is essential to the loan application process. An employment history of at least 2 years is generally a minimum requirement.
How to Go About Buying a House
At this point, you’ll need to find a loan officer that will accept ITIN numbers, like the Prysma Lending Group. The next step would be to get pre-approved for the loan. This process involves the lender gathering your credit history, bank statements, and other proof of income. Most lenders require substantial credit history, but others may take utility bills and rental records. Once you pass the pre-approval from your lender, you can finally start searching for the house you want that fits within your pre-approval budget.
Ready To Get Started?
Ready to get started? We know it can be a daunting process to get through, but that’s why we’re here to help. We have offices located in Danbury and Bridgeport, so don’t wait! Get started on your future today!
Sources:
IRS Gov: https://www.irs.gov/es/individuals/individual-taxpayer-identification-number
IRS Gov: https://www.irs.gov/es/individuals/itin-expiration-faqs