An Individual Tax Identification Number (ITIN) can be issued to a U.S. resident alien or non-resident alien who files tax returns in the U.S. If that sounds like you and you are ready to buy a home, ITIN loans can be an excellent option.
ITIN loans are an excellent way for a non-resident (or person who otherwise does not qualify for a Social Security Number) to apply for a mortgage loan. Leveraging an ITIN loan can allow you to buy a home in Charlotte.
What Is an ITIN Loan?
An ITIN loan is given to an individual who has obtained an ITIN through the Internal Revenue Service (IRS). It helps to create an identification for tax purposes within the US if you do not qualify for a Social Security Number. You must work with a lender that specializes in and offers ITIN loans. Terms and conditions can differ, but you will need to have:
- Proof of employment
- Your identification
- Credit score
- Tax returns
- Down payment
- Other financial documents
The funding process and structure are the same but incorporate the ITIN ID instead of other forms. Traditional lenders typically do not offer loans to those without a Social Security Number.
Pros and Cons of an ITIN Loan
ITIN loans have some important considerations.
Pros:
- Accessibility: These loans may be available if you are a non-U.S. citizen and wish to buy a home without a Social Security number.
- Flexibility: With ITIN loans, you do not need to have a valid work permit and do not need proof you are legally present in the U.S.
- Opportunity: These loans are a great way to build financial stability and generational wealth through homeownership.
Cons:
- Interest rates: Some people may pay higher interest rates and be required to have a larger down payment on ITIN loans than they would with a traditional mortgage.
Requirements for ITIN Loans
As with applying for any loan, you must meet the lender’s requirements, which can differ. Have the necessary documentation, including:
- Proof of income
- Proof of employment
- Tax returns
- List of assets and expenses
- Legal right to be in the US
Credit scores are another factor to consider when applying for ITIN mortgage loans. Lenders usually expect buyers to have a higher credit score, but ITIN lending guidelines are available even for those without a traditional credit history.
Down payments are often a requirement as well. ITIN lenders typically expect a 15% or more down payment.
Leveraging ITIN Loans for Homeownership
As a first-time home buyer in Charlotte, you may buy a home with an ITIN loan. Consider a few factors to doing so.
Consider a recent client who showcases an excellent way of using these funds. As a self-employed professional, he purchased a primary residence about two years ago using an ITIN loan. He qualified by using bank statement deposits to show proof of his income. He then secured a second ITIN loan to purchase an investment property, using the funds to buy and renovate it. After renovating the property, he refinanced that loan to pull out his initial investment, and then he began renting the property with greater rental income than the monthly mortgage payment. That way, he has positive cash flow every month and builds equity in the property as the mortgage is paid and the property value increases.
This is the perfect example of how ITIN loans help create the American dream of homeownership. Even if you think you cannot qualify for a loan, chances are good you can.
A Word of Caution
Not all lenders offer ITIN mortgage loans. They do carry more risk to the lender. Some mortgage lenders who offer these loans don’t understand how they work or what makes them different. It’s always worthwhile to choose a lender who understands all the ITIN loan nuances. That enables the lender to help you find the best home financing option for your needs, no matter your current immigration status.
Make Your Charlotte Homeownership Dream a Reality
Are you ready to be a Charlotte first-time home buyer? If you have an ITIN and want to purchase a home, TruLoan Mortgage can help you secure an ITIN loan. Our highly experienced team specializes in ITIN loans, meaning we can guide you through the entire process. Owning a home is life-changing, and it builds personal financial stability. Let us help you to make it a dream come true for you. Contact TruLoan now for personalized assistance with ITIN loans.