Contrary to popular belief, you do not need a social security number in order to secure a mortgage. You can qualify for a mortgage with an ITIN number as long as you meet the requirements for the loan. This means being able to prove that you have a solid credit history, stable employment, and US-based assets.
If you do need to apply for a mortgage without a social security number, you will not be able to secure a Fannie Mae, Freddie Mac or FHA mortgage, but there are plenty of other options. It is not the law that requires you to have a social security number; it is the preference of these lending institutions. There are plenty of banks out there that offer loans to borrowers that are not citizens of the United States.
Credit is Important
Your credit shows a lender whether or not you are financially responsible. If you are not a citizen, yet you have established credit, you could secure a mortgage. ITINs allow aliens to secure many different types of accounts including credit card accounts. If you were able to secure a few credit card accounts or even a personal loan through the bank that you have a bank account through, then you have a credit score. If that credit score is good, then you could be eligible for a mortgage in the United States.
Bank Accounts Help
As you probably know, not every mortgage program requires that you have assets, but they definitely help. This is the case for mortgages for people with an ITIN number. A bank account is something you can obtain without a social security number, so if you have one and can show the lender the last 12 months’ worth of bank statements, it will make your position to get approved better. The more assets you have, the more likely it is that you will be able to pay your mortgage, which lowers your risk level as far as the lender is concerned.
Assets also help when it comes to the down payment. Generally speaking, you can get a mortgage with as little as a 3 percent down payment, even if you are not a United States citizen, but many banks will prefer a larger down payment. The more money you put down, regardless of the program, the lower your risk becomes, which helps the lender want to approve you for a mortgage.
Your employment history in the United States plays an important role in the approval of your loan with an ITIN as opposed to a social security number. You have to be a part of the United States Immigration System and/or be working on a US permit. You also have to have a 2-year history. Some programs allow a little leniency when it comes to the 2-year job history, but for aliens wanting a mortgage in the United States, the 2-year history is required.
Even if you do not have adequate credit reporting under your name, but you have alternative credit, such as utility bills, phone bills, or insurance payments that you can prove the timeliness of, you can use that as your alternative credit. The lender will ask for proof of at least 12 months’ worth of payments made on time in order to determine your level of risk, but this is a good alternative for those immigrants that do not have credit established here yet.
Higher Interest Rates
The one thing you should keep in mind with getting a mortgage with an ITIN number is the interest rate. Chances are the rate you will receive is going to be higher than the rates for citizens of the United States, simply because of the level of risk this loan poses. The lender is taking a chance on you even though you do not formally live in the US. Yes, you have factors that show that you qualify for the loan, including steady employment, but there is still a level of risk there that the lender has to take into account.
If you have an ITIN number instead of a social security number, there are lenders out there willing to lend to you. It might take a little more searching and plenty of work, but in the end, you will get the loan you need to become a homeowner in the United States.Click to See the Latest Mortgage Rates»