Say what? No… there is no typo there… an Individual Taxpayer Identification Number (ITIN – usually pronounced “eye-tin”) is a tax processing number issued by the Internal Revenue Service. Despite its restrictions on benefits, ITIN holders can still obtain loans for purchase, refinance or cash-out transactions.
Per the IRS.gov website:
The IRS issues ITINs to individuals who are required to have a US taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security number (SSN) from the Social Security Administration (SSA).
This essentially helps individuals residing in the U.S. to comply with the tax code regardless of their immigration status. Contrary to popular belief, BOTH resident and nonresident aliens may have a tax reporting requirement and still lack a Social Security number. ITINs singular purpose is for federal tax reporting and does not authorize work or provide for benefits such as Social Security or the Earned Income Tax Credit for dependents. Contrast this with loans for foreign nationals who have no ties to the U.S.
Unfortunately, when it comes to home financing, most banks and conventional lenders lack options for ITIN borrowers who usually then have to turn to a mortgage broker offering a diverse variety of loan products. This is a welcome relief for many of the tax-paying ITIN residents who may be in the process of obtaining VISA sponsorships and/or establishing residency but wish to purchase a home or take cash out of their homes today.
Some of our ITIN offerings include the ability to borrow up to $1,500,000, or up to 90% of the value of the home. One product allows a generous 50% debt-to-income ratio (normally the maximum for conventional loans is 43%) with no asset reserve requirement. Minimum FICO scores are also relatively lower compared to those for conventional loans.
To see what your ITIN options may be, please reach out to your local mortgage broker!