Unlike most mortgages, you don't need a Social Security number to apply for an ITIN loan.
Instead, you can apply with an individual taxpayer identification number, or ITIN, and other documents, and you can qualify as long as you meet down payment, credit and other requirements.
Here's what you need to know.
What is an ITIN loan?
ITIN loans are a type of non-qualified mortgage (non-QM) designed for people with individual taxpayer identification numbers. The IRS issues ITINs to those who aren't eligible for Social Security numbers but are required to file federal tax returns, such as people who live and work in the U.S. but aren't U.S. citizens.
Mortgage lenders tend to charge higher interest rates for ITIN loans than conventional loans — anywhere from 0.5 to 2 percentage points higher. This is because lenders view ITIN loans as higher risk. ITIN borrowers don’t have traditional or extensive credit history, and many tend to have complex income situations. In addition, lenders typically keep ITIN loans in their portfolio; due to their nonconforming nature, they’re not government-backed and generally cannot be resold.
🤓 Nerdy Tip
You can refinance an ITIN loan just like a traditional mortgage. ITIN loans are a tiny fraction of the mortgage market. About 5,000 to 6,000 ITIN mortgages were issued in 2023, a February 2024 Urban Institute report estimated. By comparison, about 4.3 million mortgages closed in 2024, according to the Federal Housing Financing Agency's National Mortgage Database.
But the market for ITIN loans has the potential to grow and play an important role in advancing homeownership among Latinos, who make up the majority of ITIN holders, according to the Urban Institute report.
ITIN loan requirements
Other than having an ITIN, the requirements typically include:
- Proof of income and employment: A lender will verify employment and review documentation such as tax returns, profit and loss statements and bank statements. Generally, you’ll need to show proof of two years of employment and two years of tax returns.
- Credit history: The requirements will vary by lender, but having a history of paying bills on time will improve the chances of qualifying. A traditional credit history is the record of making loan and credit card payments. However, some ITIN lenders will consider a history of paying utility bills and rent.
- Down payment: Typically, the down payment requirement is 10% to 20% — higher than for many mortgages, such as FHA loans backed by the Federal Housing Administration. Some lenders allow you to use gift funds for the down payment and closing costs.
- Debt-to-income ratio, or DTI: Monthly debt payments should be under a certain percentage of gross monthly income, such as 50%. Some lenders may have higher or lower thresholds.
Where to get an ITIN loan
ITIN loans are specialized. Most lenders that offer ITIN loans are credit unions and community development financial institutions, according to the Urban Institute.
But some larger lenders offer them, too. Of the 40+ major lenders NerdWallet reviews, 18 say they offer ITIN loans.
Once you identify a few lenders that offer ITIN loans, apply for preapproval and compare their rates, fees and terms. Then, choose the best deal for your situation.
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