An ITIN Mortgage allows individuals who do not have a Social Security number, but possess a valid Individual Taxpayer Identification Number (ITIN), to secure financing for home purchases or refinances in the United States. This guide covers eligibility criteria, main features, pros and cons, program costs, application steps, and comparisons to other mortgage options.
Who This Mortgage Is For
Borrowers without a U.S. Social Security number, but with a valid ITIN issued by the IRS.
Non-resident aliens, immigrants, and other foreign nationals seeking to purchase or refinance a primary home or investment property in the U.S.
Self-employed individuals or those with non-traditional income and no U.S. credit history, provided they can show stable income and creditworthiness.
First-time homebuyers, families relocating to the U.S., and those not qualifying for conventional or government-backed loans due to SSN status.
Key Facts (At-a-Glance)
Item
Details
Loan Purpose
Purchase / Refinance / Cash-out (varies by lender)
Property & Occupancy
Primary residence, second home, and investment properties (lender-dependent)
Rate Type
Fixed-rate and adjustable-rate (ARM) options available
Term Length
Commonly 15, 20, or 30 years; options “sample/illustrative”
APR
Varies by applicant and lender; often higher than prime credits due to risk profile (“sample/illustrative” range 7%–10% APR as of 2024, confirm current rates)
Minimum typically 10%–20%; some lenders require up to 25%, “varies by lender/program”
Loan-to-Value (LTV)
Max LTV usually up to 75%–90%; varies by property type, credit profile, and lender
Debt-to-Income (DTI)
Sample cap: up to 43%–50%, lender/program dependent; “illustrative”
Mortgage Insurance
Private mortgage insurance (PMI) typically required for LTV above 80%; terms vary
Loan Limits
No standardized conforming cap for ITIN mortgages; lender-specific. Always verify loan limits
Closing Costs
Estimate: 2%–5% of loan amount; “sample/illustrative”
Prepayment Penalty
“Varies / confirm on official disclosures”; more common than with conventional loans
Rate Lock
Typically 30–60 days, but “varies” by lender and market
Escrow
Taxes/insurance usually escrowed; “varies by lender/market”
Pros
Makes homeownership possible for individuals without a U.S. Social Security number and with an ITIN.
Acceptance of alternative income documentation (such as foreign tax returns, bank statements, or foreign credit reports) by some lenders.
Eligible properties may include second homes and investment properties on a case-by-case basis.
No formal immigration status or green card required for program eligibility in many cases (but lender policies differ).
Cons
Higher interest rates and APR than conventional or government-backed mortgages.
May require larger down payments (often 20% or more) compared to FHA or VA loans.
Private mortgage insurance (PMI) is often necessary if down payment is under 20%, adding to overall costs.
Stricter documentation and qualification standards; not all lenders offer ITIN mortgages or accept alternative credit/income proof.
Potential prepayment penalties and higher closing costs.
No access to federal government-backed loan benefits (such as FHA, VA, USDA programs).
Costs, APR & Amortization
Nominal interest is the base rate, but the APR reflects true borrowing costs after factoring in required lender fees and discount points.
ITIN mortgages typically carry higher APR than mainstream loans; fees and PMI/MIP premiums can add significantly to the overall cost.
Mortgage insurance (PMI) is common above 80% LTV; some lenders allow removal after equity reaches 20–22%.
Escrow accounts for taxes and insurance are routinely required, but these charges usually do not appear in the APR disclosure.
Review the full Loan Estimate and Closing Disclosure; always compare APR, not just the rate.
Representative example (sample/illustrative):
Example
Loan Amount
Rate
APR
Term
Monthly Principal & Interest
Total Paid
Sample Scenario
$250,000
8.0% (sample)
8.72% (sample, incl. fees/points)
30 years
$1,834 (sample)
$660,240 (excluding insurance, taxes, and PMI)
Fixed vs Adjustable (ARM)
Fixed-rate ITIN mortgages offer payment stability for the full loan term, making budgeting easier but often at a higher rate.
Adjustable-rate (ARM) ITIN mortgages may offer a lower introductory rate for the first 3–5 years, then adjust periodically per an index (such as SOFR) plus lender margin.
ARMs require careful review of caps (limits on how much the rate can increase per adjustment and over the loan lifespan), as payment shocks are possible after the initial period.
Each program’s fixed or adjustable structure varies, so details should be checked in the lender’s official disclosures.
Eligibility, Underwriting & Documentation
Applicants need a valid ITIN issued by the IRS; a Social Security number is not required.
Lenders will verify lawful income sources (such as bank statements, U.S./foreign tax returns, or employer letters); stable employment is important.
Alternative credit (utility bills, rental history, foreign credit references) may substitute for a traditional U.S. credit score at some lenders.
LTV and DTI caps apply; stricter in the absence of robust U.S. credit data.
A property appraisal is always required; collateral and title must clear U.S. market standards.
Lenders may request reserves (cash savings after closing); specific reserve requirements vary.
Each lender and program sets unique underwriting criteria; always consult the lender’s official eligibility documentation.
Application, Disclosures & Closing Timeline
Start with pre-qualification or pre-approval to understand maximum eligibility and shop rates within a short window (minimizes credit impact if U.S. credit is already established).
Complete the official loan application and submit documentation (proof of ITIN, income, credit, residency, property info).
Receive required disclosures, including the U.S.-standard Loan Estimate and Closing Disclosure; review for APR, points, PMI, and closing costs.
Processing period covers income and asset verification, property appraisal, underwriting review, and clearance of lender conditions.
After final approval (“clear to close”) and execution of closing documents, funding occurs and ownership is transferred.
ITIN mortgages may take longer to close compared to mainstream loans, especially if foreign documents require translation or verification.
Government-Backed & Special Programs
Currently, there are no federal government-backed ITIN mortgage programs in the U.S.; FHA, VA, and USDA loans require SSNs.
Some state or local housing agencies may have pilot programs or partnerships for ITIN borrowers; always check the nearest state housing authority’s official website for updates.
Eligibility for down payment assistance, grants, or subsidized rates is limited for ITIN borrowers but varies by locality.
Rate Locks, Points & When to Reprice
Locking the rate secures the quoted interest rate for a set period (commonly 30–60 days); float-down policies are rarely offered for ITIN programs.
Discount points can lower the rate by prepaying interest up front, while lender credits can offset closing costs at the expense of a higher interest rate; review impact on APR carefully.
Changes in credit factors, loan amount, or property type may require repricing before closing—always confirm with the lender before proceeding.
Refinance & Remortgage Options
ITIN refinance loans allow current ITIN mortgage holders to obtain better rates, adjust terms, or convert equity with a cash-out refinance subject to the same documentation and underwriting standards.
Rate-and-term refinancing may be used to move to a fixed-rate loan or lower payment if market rates fall.
Streamlined refinance is not typically offered for ITIN mortgages; full documentation is usually required.
Refinancing closing costs should be weighed against potential interest savings—always review lender’s fee schedule and estimate break-even period.
Risks & Responsible Borrowing
Adjustable-rate ITIN mortgage borrowers risk payment increases if market rates rise after the introductory period.
Failure to make timely payments leads to risk of foreclosure; U.S. lenders may act swiftly in the absence of forbearance programs for non-standard loans.
If home values decline, borrowers with a high LTV may face negative equity—important for those with higher down payment requirements.
Budgeting for non-mortgage costs like property taxes, insurance, maintenance, and PMI is essential; overextending finances increases risk.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
ITIN Mortgage
Fixed-Rate Alternative
ARM/HELOC Alternative
Rate Type
Fixed or ARM, higher rates for ITIN
Lower rates for prime borrowers, predictable
Low initial rate, payment can increase
Down Payment
10–25% (“varies”/sample)
3–20% (FHA/Conventional)
3–20% (FHA/Conventional)
Insurance (PMI/MIP)
Often required above 80% LTV, private-market rules
PMI required if <20% down; FHA = MIP
If applicable, same as underlying mortgage
Closing Costs
2–5% (“sample”/varies)
2–5% (varies by lender)
2–5% (varies by lender)
Frequently Asked Questions
What is an ITIN mortgage?
A home loan for individuals without a Social Security number but with a valid ITIN (Individual Taxpayer Identification Number) issued by the IRS.
Available for property purchases and sometimes refinancing in the U.S.
Terms and documentation requirements vary by lender.
Can undocumented immigrants get ITIN mortgages?
Many lenders do not require formal residency status but do require a valid ITIN and verifiable income/assets.
Availability and policies differ by lender and state; confirm current rules before applying.
Are ITIN mortgage rates higher than standard mortgages?
Yes, rates are generally higher than prime market rates, reflecting increased risk for lenders.
Borrowers may also face higher down payments and stricter eligibility checks.
Conclusion & Next Steps
ITIN mortgages provide essential access to home loans for non-citizens and individuals with an ITIN but no Social Security number in the U.S.
Best suited for stable-income borrowers able to provide substantial documentation, meet higher down payment requirements, and navigate premium interest rates and fees.
Those who qualify for conventional or government-backed mortgages may find those options more affordable; however, ITIN programs can be a viable path for otherwise ineligible applicants.
Always compare multiple official lender offers, verify the latest requirements, and consult the IRS’s ITIN guidance for application and eligibility updates.
