ITIN Mortgage Loans: How ITIN Home Loans Work

An ITIN mortgage is a home loan for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number. These loans fall outside Fannie Mae and Freddie Mac programs, so they are offered as non-QM loans with their own guidelines. You may qualify if you can document steady income, a history of paying bills on time and the funds needed to close.

What an ITIN is

The IRS issues an Individual Taxpayer Identification Number to people who need a U.S. taxpayer identification number for federal tax purposes but are not eligible for a Social Security number. It is a nine-digit number that begins with the digit 9, and it is requested on IRS Form W-7. An ITIN exists for tax reporting. It does not provide work authorization, Social Security benefits or any change in immigration status.

An ITIN that goes unused on federal tax returns for a period of time can expire, and an expired number has to be renewed. Lenders usually want to see that your ITIN is active. For questions about getting, renewing or using an ITIN, talk to a tax professional.

How ITIN mortgage loans work

Agency programs generally require a Social Security number, so ITIN loans are made under private investor guidelines. The lender still has to make a reasonable, good-faith determination that you can repay the loan, as the CFPB Ability-to-Repay rule requires. What changes is how your identity, credit and income are documented.

Many ITIN programs accept income shown on tax returns filed with your ITIN, on W-2 or 1099 forms, or, for self-employed borrowers, in personal or business bank statements. Some programs lend only on a primary residence, while others also allow second homes or investment properties. Programs vary by borrower, property and investor.

ITIN loans often price higher than agency loans because they carry more risk for the investor, and many programs expect a larger down payment than a conventional loan would. Your Loan Estimate should lay out both clearly.

Who an ITIN mortgage fits

This loan type is built for people with an ITIN instead of a Social Security number who earn steady income, file U.S. tax returns and want to buy or refinance a home. It often fits:

Wage earners paid on a W-2 who file taxes with an ITIN
Self-employed business owners, contractors and tradespeople
Households where one co-borrower has an ITIN and another has a Social Security number
Buyers with little traditional credit but a long record of paying rent and utilities

Documents lenders commonly ask for

Every program sets its own list, but these items come up often:

Your ITIN assignment letter from the IRS, or another IRS notice showing the number
An unexpired passport or other government-issued photo ID
A visa, if applicable to you
Federal tax returns filed with your ITIN
Pay stubs and W-2s, or personal and business bank statements if you are self-employed
Bank statements showing your down payment and closing funds, with large deposits explained
A U.S. bank account in your name
Credit references if your credit file is thin

A loan officer can tell you what a program asks for but cannot advise you on immigration matters. Questions of that kind belong with an immigration attorney.

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Alternative credit when your file is thin

Many ITIN borrowers have a short credit history, or none at all, with the major credit bureaus. Some programs work from a traditional credit report, and others accept alternative credit. Alternative credit means showing on-time payments on bills that do not always appear on a credit report, such as rent, utilities, phone service, auto insurance or a car loan from a smaller lender. Lenders typically want these to be ongoing accounts paid on time for a meaningful stretch, backed by canceled checks, bank records or letters from the companies you pay.

If you do have a credit report, check it for errors before you apply. Paying every account on time and keeping card balances low in the months before you apply can make a difference.

How it compares with a conventional loan

Conventional loans that follow Fannie Mae or Freddie Mac rules generally ask for a Social Security number and a standard credit report, and they tend to price lower for borrowers who qualify. If you or a co-borrower may be eligible for an agency loan, compare that option too. An ITIN loan makes the most sense when the identification requirement is what stands between you and financing. Some ITIN programs also allow bank statement income, which helps self-employed buyers whose tax returns show reduced income after deductions.

Pros and trade-offs

Pro: a path to owning a home without a Social Security number
Pro: income can often be documented in more than one way
Pro: alternative credit may be accepted when your credit file is thin
Trade-off: pricing is often higher than on agency loans
Trade-off: a larger down payment is common
Trade-off: fewer lenders offer these programs, so shopping takes more effort

How to get started

Gather your ITIN letter, identification, recent tax returns and bank statements before you call. Tell the loan officer how you earn your income, what credit history you have and what kind of property you want. Once you apply, compare the Loan Estimates you receive so you can see pricing and terms side by side. All loans are subject to credit approval, and depending on your documents you may be eligible for more than one program. For tax filing questions, talk to a tax professional.

Who this tends to fit

You have an ITIN instead of a Social Security number
You file U.S. tax returns using your ITIN
You earn steady W-2 wages or run your own business
Your credit file is thin, but you pay rent and utilities on time
You want to buy or refinance a home to live in
One co-borrower has an ITIN and another has a Social Security number

Before you call

Your ITIN assignment letter or IRS notice
Passport or other government photo ID, plus a visa if applicable
Recent federal tax returns filed with your ITIN
Pay stubs and W-2s, or 12 or 24 months of bank statements
Records of on-time rent, utility and phone payments
Statements showing funds for the down payment and closing

ITIN Mortgage Loans by state

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Common questions

Can I get a mortgage with an ITIN instead of a Social Security number?

You may qualify. Non-QM lenders offer programs for borrowers with an ITIN instead of a Social Security number. These loans sit outside Fannie Mae and Freddie Mac guidelines, so each investor sets its own rules for credit, income and property type. The lender still verifies that you can repay. Each program sets its own terms, and every file is subject to credit approval.

Do I need a credit score for an ITIN loan?

Not always. Some ITIN programs use a standard credit report, while others accept alternative credit, such as a record of on-time rent, utility, phone or insurance payments. Lenders usually want those accounts documented with bank records, canceled checks or letters from the companies you pay. A thin file can still work, but expect the lender to look closely at how you have handled the bills you do have.

Can self-employed ITIN borrowers qualify?

Many programs accept self-employed borrowers with an ITIN. Income may be documented with tax returns filed under your ITIN, or with personal or business bank statements reviewed over 12 or 24 months. When bank statements are used, the lender applies an expense factor to business deposits or relies on an expense letter from a CPA or tax preparer. Keeping business and personal money in separate accounts makes the review smoother.

Does applying for an ITIN loan involve my immigration status?

A mortgage application is a credit decision, and a loan officer cannot advise you on immigration questions. Lenders ask for documents such as your ITIN letter, passport and a visa if applicable to verify your identity. If you have questions about how buying property or applying for credit relates to your personal situation, consult an immigration attorney before you apply.

Why do ITIN mortgages cost more?

ITIN loans are non-QM loans, which means Fannie Mae and Freddie Mac do not buy them. The investors who do take on more risk, and that usually shows up as higher pricing than an agency loan and an expectation of a larger down payment. Pricing still varies from lender to lender, so comparing Loan Estimates from more than one source is worth the effort.

What if my ITIN has expired?

An ITIN that has gone unused on federal tax returns for a period of time can expire, and many lenders want to see an active number before they move forward. The IRS handles renewals through Form W-7. Sort this out before you apply so your tax returns and identification line up. For help with renewal or filing questions, talk to a tax professional.

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