What Is an ITIN Loan?
ITIN loans, also known as foreign national mortgages, are a type of Non-QM loan that allow non-residents to purchase real estate without citizenship. These individuals typically don’t have Social Security numbers, however they may have Individual Taxpayer Identification Numbers (ITINs). The IRS issues ITINS to individuals who need identification for tax purposes but aren’t eligible for SSNs because they’re not residents.
Unfortunately, individuals with ITINs are ineligible for traditional home loans because these loan types require an SSN. However, that doesn’t mean there aren’t options available for foreign nationals. ITIN mortgage loans are designed to help these borrowers achieve their dreams of homeownership and access credit when they have limited borrowing options.
Pros and Cons of ITIN Mortgages
The most significant benefit of ITIN mortgages is that they allow individuals who don’t have SSNs and don’t qualify for traditional mortgages due to their immigration status to get a home loan. These borrowers may be undocumented immigrants, foreign nationals, and non-residents. Other benefits include:
- Easier access to homeownership: ITIN mortgages allow non-citizens to purchase real estate even without an SSN.
- Credit building: Non-U.S. citizens may not have credit, but a timely ITIN loan payment can help them build credit over time.
- Competitive interest rates: Interest rates are set by the lender, but many offer competitive rates to make them more affordable.
- No documents are required to prove residency: You may be eligible for the loan as long as you have an ITIN. There’s no need to provide documents to prove residency.
Unfortunately, ITIN mortgages aren’t perfect and come with some disadvantages, such as:
- Not offered by all lenders: ITIN loans aren’t offered by all lending institutions, so borrowers may have limited options.
- Stringent requirements: ITIN mortgages can have stricter requirements than other types of real estate loans because borrowers don’t have SSNs, making them a higher perceived risk for the lender.
- Higher down payments: To mitigate their risk, lenders may require higher down payments on ITIN loans.
ITIN Mortgage Loan Requirements
Like all home loans in Arizona, ITIN mortgages come with a set of requirements determined by the lender. These requirements vary by lender, so you should do your research and contact lenders in your area to learn more about their specific criteria. In general, Arizona ITIN loans require the following:
- Valid ITIN: To qualify for an ITIN loan, you must have a valid ITIN issued by the IRS. If you don’t have this number, you will not be eligible.
- Proof of Income: All borrowers are required to provide documentation that verifies income, such as pay stubs, rental income, tax returns, or bank statements. These documents prove your ability to repay your monthly mortgage bills.
- Proof of Creditworthiness: While lenders understand foreign nationals and other non-citizens may not have a credit score, they must still provide proof of creditworthiness. Lenders can consider alternative forms of credit assessment, including rental payment history, utility bill payments, and bank statements.
- Down payment: Borrowers will also need to provide a down payment, but the exact amount varies depending on the lender and loan program.
See If You Qualify for an ITIN Loan in Arizona
Ready to invest in real estate with an Arizona ITIN loan? ITIN loans can help you purchase a home if you’re a non-resident, but you must still meet certain eligibility requirements.
Contact Griffin Funding today to learn about your options and determine whether an ITIN loan in Arizona is right for you.
Frequently Asked Questions: Arizona ITIN Loans
What is the minimum credit score for an ITIN loan in Arizona?
Borrowers aren’t required to have a FICO score, but they must demonstrate creditworthiness through alternative methods. Instead of reviewing credit scores, lenders may look at other financial factors to determine whether a borrower is someone who pays their bills on time, such as proof of rent payments, bill payments, and other loans.
The ITIN credit score requirements vary by lender. You can find more information on a specific lender’s website or by contacting them directly. Griffin Funding’s minimum credit score on ITIN loans is 620.
What is the minimum downpayment for an ITIN loan in Arizona?
ITIN down payments vary by lender but are typically a minimum of 20%.
What are the types of ITIN mortgages in Arizona?
Griffin Funding offers a variety of loan options for non-U.S. citizens with an ITIN through our Non-QM loan programs including: full documentation, bank statement, DSCR, asset-based, and interest-only.
What are the different types of Non-U.S. citizen mortgages that are available in Arizona?
The loan programs available to non-U.S. citizens depend on residency status..
- Permanent Resident Alien Loans: Non-citizens living permanently in Arizona with a green card can purchase primary residences, second homes, and investment properties.
- Non-Permanent Resident Alien Loans: Non-citizens living temporarily in Arizona on a visa, can qualify for a mortgage on primary residences, second homes, and investment properties.
- ITIN Loans: Non-citizens living in Arizona with an ITIN number issued by the IRS but without a social security number, can purchase or refinance primary residences, second homes, and investment properties.
- Foreign National Loans: Non-citizens wanting to invest in Arizona real estate without a social security number, green card, or visa can purchase or refinance second homes, and investment properties.
Permanent and non-permanent resident alien loans typically have the most favorable terms with lower interest rates, lower down payment requirements, and lower credit score requirements with the ability to purchase all property types. Foreign national loans and ITIN loans are most commonly used when an individual borrower does not meet the requirements of permanent resident alien and non-permanent resident alien. These types of programs make it possible for non-U.S. citizens to purchase property in Arizona, even if they lack documentation that’s traditionally required to secure a home loan.
What does the ITIN loan application process look like?
The ITIN loan application process is similar to any other type of mortgage. Before applying, we recommend giving us a call to discuss your unique financial situation and the options available to you. Here’s what the lending process looks like when getting a mortgage from Griffin Funding.
- Discovery Meeting: During our discovery meeting, we’ll learn more about you to discuss whether an Arizona ITIN loan is right for you.
- Pre-approval: Getting pre-approved can help you determine your budget.
- Rate Lock: Lock in your interest rates early to get the best deal.
- Application: Once you’ve found a property you want to purchase, you can complete the application online or over the phone.
- Mortgage Underwriting: We’ll review your application and supporting documents to determine whether you qualify for the loan and the loan size.
- Appraisal & Inspection: Before we approve the loan, we’ll order an appraisal to determine the value of your home.
- Approval: After appraisal and inspection, we’ll approve or deny the loan based on the information you’ve provided us and the property itself.
- Closing: If your loan is approved, we’ll schedule closing.
What is the interest rate on an ITIN mortgage in Arizona?
The interest rate on Arizona ITIN mortgages varies by lender and other factors like your credit history, income, and down payment. ITIN interest rates tend to be higher since these borrowers are considered higher risk.
However, Griffin Funding offers competitive rates on ITIN loans to make them more affordable. Contact us today for the most accurate information on ITIN rates in Arizona.