A Brief Overview
Millions of people who don’t have a social security number own a home in the United States. Many people pay cash, but for those who need to buy with a mortgage, and do not have a Social Security Number (SSN), they use their ITIN. In our earlier blog, Understanding ITIN Loans, we introduced you to what an ITIN loan is and how to get one. This is the path to home ownership for many people. Many people assume they must have an SSN before they can apply for a loan. This is not necessarily true. You must have proof of identity, etc. but you do not need an SSN.
Who Can Benefit From an ITIN Loan?
Many people may apply for an ITIN loan, for example:
- An alien living in the USA who is not eligible for an SSN but who has paid taxes and been in the same line of business or same type of job for at least two years. Two years of earnings doing the same sort of work is a standard that all lenders expect, whether a borrower has an SSN or not. They do not have to have been in the same job, it must just be the same sort of work or same line of business if they are self-employed. Lenders look for stability.
- An adult without an SSN who is a dependent or spouse of a US citizen or resident alien.
- An adult dependent of the spouse of a non-resident alien with a valid visa.
ITIN loans are to buy a home not an investment property to rent out to others, for example. If you do not currently have an ITIN, you can apply for one by completing Form W-7 and sending it to the IRS along with your tax return.
Advantages of an ITIN Loan
- 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.)
- It is much quicker to buy a home with an ITIN loan than to spend many years saving up to buy with cash.
- Applying for an ITIN loan is easy, quite quick, and can be done online. You need proof of identity (such as your ITIN,) proof of steady income (two years in the same sort of job or line of business,) proof that you submit your annual tax return. Other documents that any lender would want. Because EPM does business in almost every state, including Washington DC, you can rely on the fact that we are here to help you.
- ITIN loans are cheaper than applying for a “hard money” loan. A “hard money” loan is one that is generally made by a person or company which focuses more on the value of the property that is used as collateral for the loan, than on the person borrowing the money. Interest rates charged on these types of loans are almost always much higher than a traditional mortgage or an ITIN loan.
- When you have an ITIN loan you build your credit score. The higher your score the easier it is to get other loans. In the future you may want to buy furniture, a car, get a student loan, or borrow money to start or expand a business.
- It is usual to take out a 30 year fixed rate mortgage. Once you have your ITIN loan in place you may decide to take advantage of lower interest rates and refinance your existing loan.
When you have an ITIN and can show you can afford to own your own home, you can apply through us for an ITIN loan. Please get in touch with us, so we can explain the details of how you get pre-approved for a mortgage, and how to apply for one. Our many ITIN loan clients come from all over the world including Spanish-speaking countries, so si desea trabajar con nosotros en español, hágalo. If you would like to use our English contact form, then please click here.