Can You Buy a House With an ITIN Number?

Individuals holding an Individual Taxpayer Identification Number (ITIN) can purchase a home in the United States. This pathway to homeownership is important for many who contribute to the economy and seek to establish stability through property ownership. ITINs are issued by the Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number for federal tax purposes but are not eligible to obtain a Social Security Number (SSN). This enables ITIN holders to fulfill their tax obligations, and certain lenders recognize the ITIN as a valid identifier for mortgage applications. While the process differs from traditional mortgages, specialized loan programs exist to support ITIN holders in achieving their homeownership goals.

Understanding Eligibility for ITIN Mortgages

Lenders offering ITIN mortgages assess a borrower’s financial standing to ensure repayment capability. A consistent income and stable employment history are typically required, often demonstrating at least two years in the same line of work. Lenders may also examine bank statements to confirm regular income deposits.

Down payment expectations for ITIN mortgages can be higher than for conventional loans, commonly ranging from 10% to 25% of the home’s purchase price. Some programs may offer options with lower down payments, such as 3.5%. The size of the down payment often influences the interest rate offered, with a larger down payment potentially leading to more favorable terms.

Creditworthiness is evaluated for ITIN holders, even those without a traditional SSN-based credit history. Lenders utilize “alternative credit” methods, which focus on a history of timely payments for recurring obligations. This can include payments for rent, utility bills, and insurance premiums. The goal is to demonstrate financial responsibility.

Gathering Necessary Documentation

Specific documents are necessary before applying for an ITIN mortgage. A valid ITIN is foundational, and proof of its assignment is typically established through the IRS CP565 notice. This notice confirms the ITIN and includes important personal details that must be accurate.

Proof of income and employment is verified through documents like tax returns filed using the ITIN, usually for the past two years. Lenders also require recent pay stubs (30-60 days) and bank statements (two to three months). An employer verification letter may also be requested to confirm current employment status and income.

Proof of residency is established with documents showing your name and current residential address. This can include utility bills, lease agreements, or bank statements. These documents help verify a stable living situation.

To support alternative credit history, documentation is required, such as copies of rent payment receipts or a landlord verification form. Utility bills and insurance premium statements can also serve as proof of payments. Valid government-issued identification, such as a passport or a consular ID, is necessary to verify identity.

The Mortgage Application and Closing Process

After gathering necessary documents, find lenders experienced with ITIN mortgages. Credit unions, community banks, and specialized mortgage brokers offer these loans. These institutions are familiar with ITIN mortgage requirements and underwriting processes.

Submit all prepared documentation to the chosen lender. This includes the completed mortgage application form, where the ITIN is used in place of an SSN. Lenders review this package to assess the borrower’s financial picture and repayment ability.

The loan approval process includes underwriting and appraisal. Underwriting is the lender’s review of the application, income, assets, and credit profile to determine the risk of the loan. An appraisal is an independent valuation of the property to ensure its value supports the loan amount.

Once the loan is approved, the borrower receives a loan offer detailing the terms, interest rate, and repayment schedule. The final stage is closing, where all loan documents are signed, the title to the property is transferred, and funds are disbursed.