Using An ITIN Loan To Help Finance A Home

Are you interested in becoming a homeowner, but concerned that you may not be eligible for the purchase because you lack certain types of documentation required for home financing? Fortunately, there are certain loan options available that can help out borrowers who may not be able to qualify for a traditional loan. If you are located in Stamford, Norwalk, or Fairfield, Connecticut, and want to learn more about unconventional lending options, Prosper First Funding Corporation is here to help. Continue reading to learn more about buying a property with an ITIN loan.

What Is An ITIN Loan?

ITIN loans are a special type of non-QM loan that is intended for individuals who reside in the U.S. but lack the certain documentation that is generally needed to qualify for a conventional loan. This type of loan can be suitable for individuals who are not eligible for a social security number, such as; borrowers that are not United States citizens, resident or non-resident aliens, and specific individuals without legal immigration status or foreign investors. An individual tax identification number, or ITIN, can be used as a form of identification for some individuals that file a tax return, but are not eligible for a social security number. Most conventional home loans require borrowers to provide documentation verifying income, assets, and citizenship, but borrowers with an ITIN card can qualify for this type of mortgage as long as they meet specific requirements.

These types of loans can be used to purchase townhomes, condos, single residence family homes, and mobile homes as long as the purchase serves as the borrower’s primary residence. ITIN loans can offer other benefits for a borrower, in addition to not requiring social security or credit verification. They tend to have better rates than hard money loans and a borrower could use gift funds to help afford a down payment. It can also help a borrower build credit and refinance the loan for better rates and terms in the future.

Eligibility Requirements For An ITIN Loan

In order to qualify for an ITIN loan, certain eligibility requirements must be met, including:

  • You must demonstrate proof of one year’s income and a minimum of two years of work history.
  • If you are a W2 employee, you must provide pay stubs from the past thirty days.
  • It is possible for a self-employed borrower to qualify with bank statements rather than tax returns.
  • Depending on your credit score, you must make a down payment of at least fifteen percent.
  • A minimum credit score of 600 is ideal, however, you can still qualify if you do not have a credit score.
  • It may be possible with some lenders to have a debt-to-income ratio, (DTI), as high as fifty-five percent.

If you are located in Stamford, Norwalk, or Fairfield, Connecticut, and want to learn more about ITIN loans, contact Prosper First Funding Corporation for a consultation.