You can get a mortgage with an ITIN instead of a Social Security Number, but the loan will look different from a conventional one. Most ITIN mortgages are non-qualified mortgages (non-QM) held on a lender’s own books or sold to private investors, not backed by Fannie Mae, Freddie Mac, or a federal agency. Expect a down payment of 15% to 20%, an interest rate roughly half a point to two points above conventional rates, and more documentation than an SSN borrower would face. Lenders will often accept alternative credit records in place of a traditional score.
How an ITIN Mortgage Differs from a Conventional Loan
Fannie Mae’s selling guide technically allows a borrower to use an ITIN in place of an SSN, but it also imposes separate legal residency and documentation requirements that many ITIN holders cannot meet.1Fannie Mae. General Borrower Eligibility Requirements In practice, ITIN mortgages come from community banks, credit unions, Community Development Financial Institutions, and portfolio lenders that write non-QM loans and keep them in-house.
Because these loans are not sold onto the secondary market under a shared rulebook, each lender sets its own criteria. Down payment minimums, acceptable documentation, eligible property types, loan limits, and interest rates can vary widely between two lenders looking at the same borrower. That variation cuts in your favor if you shop. Rates on ITIN mortgages generally run 0.5 to 2 percentage points above comparable conventional rates, and over a 30-year loan even half a point translates to tens of thousands of dollars in interest. Getting three or four quotes is worth the time.
Confirm Your ITIN Is Active Before You Apply
An ITIN that is not included on a federal tax return for three consecutive years expires on December 31 of the third year. If yours has lapsed, you have to renew it before a lender will accept it. Renewal means filing Form W-7 with the “Renew an existing ITIN” box checked, along with your supporting identity documents and a current tax return.2Internal Revenue Service. How to Renew an ITIN Processing can take several weeks, so handle this before you start house hunting.
What Lenders Look At
Down Payment
Most ITIN programs ask for 15% to 20% down. On a $300,000 home, that’s $45,000 to $60,000 in cash at closing. Funds usually need to be seasoned, meaning they’ve been sitting in your account for at least 60 days so the lender can verify they weren’t borrowed from an undisclosed source.
Gift funds from family are often permitted. Fannie Mae’s guidelines, which some ITIN lenders use as a baseline, allow the entire down payment on a one-unit primary residence to come from a gift.3Fannie Mae. Personal Gifts Expect to sign a gift letter confirming the money is not a loan.
Credit
Many ITIN holders have not built a traditional credit score with the three bureaus. Lenders account for this by accepting alternative credit documentation: 12 to 24 months of payment records for rent, utilities, cell phone service, and insurance premiums. A clean payment history across several of those accounts can substitute for a FICO score. If you do have a traditional score, a higher one may earn you a better rate or a smaller down payment.
Debt-to-Income Ratio
Lenders look at your back-end debt-to-income ratio, which includes the projected mortgage payment, property taxes, insurance, and every other monthly obligation. A DTI at or below 43% is a common cutoff, though some non-QM lenders will stretch higher when you bring a bigger down payment or strong cash reserves.
Documents You’ll Need to Gather
ITIN files carry more paperwork than SSN files because the lender can’t run you through the same automated verification systems. Have these ready before you apply:
- Your ITIN assignment notice (IRS Notice CP565)4Internal Revenue Service. How to Apply for an ITIN
- Two years of filed federal tax returns (Form 1040 or 1040-NR)
- A valid, unexpired foreign passport, or two other identity documents if you don’t have one5Internal Revenue Service. ITIN Supporting Documents
- 30 days of consecutive pay stubs
- Two months of complete bank statements, every page included
- For self-employed applicants: profit-and-loss statements, business bank records, or a CPA letter verifying income
The application itself is the standard Uniform Residential Loan Application, Fannie Mae Form 1003, which non-QM lenders commonly use.6Fannie Mae. Uniform Residential Loan Application (Form 1003) You’ll enter your nine-digit ITIN in the field marked for a Social Security Number.
Which Properties Qualify
Most ITIN mortgage programs finance primary residences only, meaning the home has to be where you actually live. Eligible property types generally include single-family homes, condominiums, and planned unit developments. Investment properties and second homes are usually off the table, though a few portfolio lenders make exceptions on stricter terms.
Loan size varies by program. Some cap out between $400,000 and $600,000, while specialized non-QM jumbo lenders will go up to $1.5 million. If you’re shopping in a higher price range, ask about the ceiling early.
Fixed, Adjustable, and Prepayment Terms
Both fixed-rate and adjustable-rate structures are available. Fixed 15-year and 30-year loans give you predictable payments. Adjustable-rate mortgages such as 5/1, 7/1, and 10/1 offer a lower initial rate that resets after the introductory period, which can work if you plan to sell or refinance before the reset but carries payment-shock risk if you don’t.
Many ITIN programs don’t charge prepayment penalties, but this varies by lender. Ask in writing before you sign. If a prepayment penalty applies, it has to appear on your Closing Disclosure.
Closing Costs and the Three-Day Disclosure
Federal regulation requires your lender to deliver a Closing Disclosure at least three business days before you sign final loan documents.7eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions It lists your final interest rate, monthly payment, and every fee. Compare it against the Loan Estimate you got when you first applied; large changes are worth questioning.
Closing costs typically run 3% to 5% of the loan amount and include title insurance, the appraisal fee, county recording fees, attorney or escrow fees, and the lender’s origination fee.
Tax Deductions and Obligations Tied to Your ITIN
Mortgage Interest Deduction
ITIN filers who submit a federal return can deduct qualified mortgage interest on the same terms as SSN filers. For loans taken out after December 15, 2017, interest is deductible on up to $750,000 of mortgage debt, or $375,000 if you’re married filing separately.8Internal Revenue Service. Topic No. 505, Interest Expense Your lender will send Form 1098 each January showing the interest you paid.9Internal Revenue Service. Instructions for Form 1098
FIRPTA Withholding When You Sell
If the IRS classifies you as a foreign person for tax purposes, selling U.S. real estate triggers the Foreign Investment in Real Property Tax Act. The buyer is generally required to withhold 15% of the sale price and send it to the IRS.10Internal Revenue Service. FIRPTA Withholding Two exceptions can reduce or eliminate that withholding:
- No withholding is required if the buyer intends to use the property as a residence and the sale price is $300,000 or less.10Internal Revenue Service. FIRPTA Withholding
- If you owned and lived in the home for at least two of the five years before the sale, you may exclude up to $250,000 of gain ($500,000 for married couples filing jointly) under the principal residence exclusion. When the exclusion applies, the 15% withholding may exceed your actual tax bill, and you can request a withholding certificate from the IRS to reduce the amount held at closing.11Office of the Law Revision Counsel. 26 USC 121 – Exclusion of Gain from Sale of Principal Residence10Internal Revenue Service. FIRPTA Withholding
FIRPTA rules turn on your specific residency classification. Talking to a tax professional before you list the property can keep you from overpaying at closing.
Refinancing Later
You’re not stuck with the original rate. Many lenders that write ITIN purchase loans also refinance them. The process mirrors a purchase: updated tax returns, current income documentation, a new appraisal, and the same down payment or equity and credit standards. Since ITIN rates run higher at origination, refinancing once you’ve built equity or added credit history can produce real savings.
If You Believe You Were Denied Unfairly
The Equal Credit Opportunity Act prohibits lenders from discriminating against a credit applicant based on race, color, religion, national origin, sex, marital status, or age.12Office of the Law Revision Counsel. 15 USC 1691 – Scope of Prohibition A lender may consider immigration status when assessing ability to repay, but cannot use it as a cover for denying credit on the basis of a protected characteristic. If you think a denial crossed that line, you can file a complaint with the Consumer Financial Protection Bureau or your state attorney general.