Looking to buy a home but don’t have a social security number? This guide will show you how to buy a house with an ITIN instead of a Social Security Number.
Homeownership is an essential part of the American dream, but for many, it can seem out of reach. The good news is that with some research and understanding of the laws, it is possible to buy a home in the United States using an Individual Taxpayer Identification Number (ITIN). Or with the help of specialized lenders who are willing to work with people without social security numbers. Start your journey to homeownership today!
The following guide assists those looking to buy a home, people who don’t have a social security number, and those dissatisfied with their existing mortgage setups. Keep reading to learn about the requirements, the application process, and tips for getting approved for a mortgage with an ITIN number.
Buying a home with an ITIN number in the U.S.
Homeownership is a life achievement many strive for, yet it may appear out of reach to those without a social security number. However, with determination and the right resources, there are ways to achieve it.
Contrary to popular belief, it is possible for people without a social security number to still become homeowners. By applying with their Taxpayer Identification Number (ITIN), they can still access mortgages and other types of home loans.
With the introduction of the ITIN (Individual Taxpayer Identification Number), the US government has given individuals a way to pay their taxes, even if they do not have an SSN.
This allows people to stay within the law and prove that they are doing their duty to the country. The ITIN number allows those individuals to file their taxes with ease and pay what is due without any hassle or penalty.
If you can demonstrate your connection to the US, then acquiring a home loan should not be difficult.
While it may not necessarily come from a mainstream bank, getting it from an independent or private lender is an option. The good news is that there are plenty of these available and usually offer better rates and services than bigger banks do.
Understanding Tax-ID (ITIN) Numbers
If you are a non-U.S. citizen and must complete your tax filing, the Internal Revenue Service (IRS) can provide you with an Individual Taxpayer Identification Number (ITIN).
The ITIN number is a nine-digit number necessary for processing your taxes. It is used by people who are not eligible to obtain a Social Security Number (SSN) to file their income tax returns with the IRS.
This Tax Identification Number is used for tax purposes and ensures that everyone pays their fair share of taxes. You can receive an ITIN regardless of your immigration status in the U.S. because both resident and nonresident individuals may have U.S. tax returns and payment responsibilities.
It’s a common misconception that only people with legal immigration status in the United States can receive an Individual Tax Identification Number (ITIN). The reality is that both resident and nonresident individuals may have U.S. tax returns or payment responsibilities. Therefore, based on their situation they can apply for an ITIN regardless of their immigration status.
Essentially, if you do not qualify for an exemption when filing taxes in the U.S., and do not possess a Social Security Number, you can obtain an ITIN from the IRS. An ITIN allows them to fulfill their U.S. tax obligations without compromising their personal information or identity.
What is the Difference Between an ITIN and other Tax Identification Numbers?
Knowing the difference between an ITIN and other tax identification numbers is important for anyone who is filing taxes.
An ITIN (Individual Taxpayer Identification Number) is used by individuals who are not eligible to obtain a Social Security Number (SSN).
Other tax identification numbers include Employer Identification Numbers (EINs) and Social Security Numbers (SSNs).
EINs are used by businesses, while SSNs are used by individuals. Understanding these different types of tax identification numbers can help you determine which one you need when filing your taxes.
Individual Taxpayer Identification Number (ITIN)
Not all individuals are eligible for a Social Security Number. This could be due to a variety of factors. For example, not being a US citizen or not meeting government requirements such as the criteria outlined in the dependent test.
Nonresidents who meet the requirements can apply for an ITIN by filling out a Form W-7 and providing some additional documents to confirm their nonresident status.
Social Security Number (SSN)
If you already know what Social Security Numbers are, then Tax Identification Numbers should be a piece of cake for you.
Social Security Numbers (SSNs) are the primary type of Taxpayer Identification Number (TIN) and are often obtained by parents for their kids to use when filing taxes or by qualifying for work authorization with certain VISAs.
Employer Identification Number (EIN)
Chances are you’ve come across an EIN before. These unique numbers are employed by companies, self-employed persons, corporations, LLCs, collaborations, charities, inherited trusts, and more.
Governments may additionally require EINs for certain individuals and other entities.
Companies use EINs for tax purposes, but you won’t need one when applying for a home mortgage. However, having an EIN can be advantageous in the future as it will give you access to certain services that are otherwise unavailable. Without one, you won’t be able to:
- Protect your assets such as your home
- Start a business
- Set up a retirement account
Adoption Taxpayer Identification Number
An Adoption Taxpayer Identification Number is used by adoptive parents when the child has not been assigned a Social Security Number. It serves as a temporary measure until they can secure one in the future.
Preparer Tax Identification Number (PTIN)
A professional paid tax return preparer can use this number when submitting U.S. federal tax returns or claims to the Internal Revenue Service (IRS).
It’s an important part of filing taxes accurately and quickly. If you plan on paying someone to prepare a portion of your tax return, they must have received a PTIN from the IRS. This will ensure that your taxes are accurately filed and avoid any penalties.
Can You Apply for a Mortgage with a Tax ID (ITIN)? How To Buy a House with an ITIN Number?
Applying for a mortgage with an Individual Tax Identification Number (ITIN) can be complex but no worries, we are here to guide you in the process.
It is important to understand the requirements and regulations surrounding this type of loan before you apply.
This article will provide information on how to apply for a mortgage with just your ITIN, as well as some of the use cases and benefits of doing so.
Additionally, we will discuss some of the challenges that may arise when applying for a mortgage with an ITIN and how to best prepare yourself moving forward.
Contrary to popular belief, it is possible for someone without a social security number to own a home. Applying for a home mortgage using an ITIN can provide you with the opportunity to purchase and own your dream house.
Since you have a better grasp of what Tax-ID Numbers are, let’s proceed to discuss how to apply for an Individual Taxpayer Identification Number (ITIN).
Receiving Your Taxpayer Identification Number (ITIN)
Time is of the essence when it comes to applying for mortgages, so make sure you don’t delay and begin the process without hesitation.
By beginning the application process early, you will be able to move through the process faster and have more time to make sure you get the best loan for your needs.
Starting early will also ensure that your loan is ready as soon as possible so you can start building equity in your home right away.
[Related Article: What is Home Equity and How to Use Yours in 2023]
Applying for the necessary documents can take around a month (4-6 weeks), which isn’t bad compared to other processes that involve paperwork from the government. Compared to the DMV, this whole process is much less arduous, and in the end, you’ll be glad that you did it.
Before you continue to follow the steps toward securing an ITIN number, here are some key facts that you should take note of.
How Do I Obtain an ITIN?
To start, we will let you know what is required to qualify for an ITIN. Later on in the process, we will guide you through what is NOT necessary to obtain an ITIN.
If you already have an ITIN number, skip this part and move to the Tax-ID Mortgage Loan Application section.
Getting an ITIN: What you need to know
If you are a nonresident of the United States who has U.S. income, you must obtain an ITIN to file your US tax returns.
The Internal Revenue Service (IRS) requires that all nonresidents who have U.S. income obtain an ITIN to complete the application process for their taxes.
The process can take several weeks to complete, but having an ITIN will enable you to file your returns and pay any taxes due on time and accurately.
2. Confirm your foreign status and identity with two documents
These forms of identification include:
- Passport (a separate document)
- Identity card (must have a photo, name, current address, birth date, and expiration date)
- U.S. driver’s license
- Civil birth certificates (required for dependents under 18)
- Driver’s license from another country
- I.D. card for U.S. states
- Foreign voter’s registration card
- Military ID card for foreigners
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Health records (under 6-year-olds only)
- School records (only dependents under 14; 18 if studying)
3. Send the IRS Form W-7 by mail once you have completed it
When filing your taxes or renewing your ITIN, it’s important to send all paperwork to the Internal Revenue Service (IRS) Austin Service Center, P.O. Box 149342, Austin, TX 78714-9342.
The IRS can only process your documents accurately and timely this way. Verify that all required forms and paperwork are included in your submission so that you can complete your ITIN operations as soon as possible.
4. On-time filing of the income tax return
Tax Returns and Form W-7 should be filed by the due date to avoid interest and penalties. It is possible to lose your ITIN qualification if you wait until after the due date. Don’t forget to apply in advance!
What you DO NOT need to qualify for an ITIN
- Credit score
- Social Security Number
- Green card
- Seasoning Assets
The Application Process for Individual Taxpayer Identification Numbers (ITIN)
Achieving your dream home is a little easier if you have an Individual Taxpayer Identification Number (ITIN).
To help you out, we’ll walk you through the process of applying for your ITIN. We’ll share each step with you so that you can get it done in no time.
If you already have an ITIN number, skip this part and move to the Tax-ID Mortgage Loan Application section.
STEP 1: Find the best time to apply
It is possible to obtain a Tax ID number at any time of the year, but you should ensure that your current year’s tax return is submitted before April 15th.
Doing so ensures that you meet the official filing deadline. Submitting your W-7 form without the corresponding tax return after its due date might result in you incurring interest & penalties.
So, make sure you file it before its expiration date to avoid such unpleasant circumstances.
STEP 2: Start the process
As part of the process to get started, it is important to submit your W7-Form along with all relevant documents including ID verification. To ensure that everything goes smoothly, make sure that you attach the necessary documents to your form properly. Doing so will save time and energy in getting your application approved quickly.
A valid form of identification may include a National ID Card, Birth Certificate, U.S. Driver’s License, Foreign Driver’s License, U.S. State Identification Card, U.S. Military Identification Card, Visa, Medical or School Records.
STEP 3: Mail your W-7 Form
You are almost done!
Just remember to mail your ITIN application with the tax return and not the address mentioned in Form 1040, 1040A, or 104EZ Instructions. That way, you can stay compliant and keep up to date with all filing requirements.
With the help of Form W-7, the process is fairly straightforward.
All you need to do is submit your Tax Return, Form W-7, and identity documents like your passport or driver’s license to the given address on the Form W-7 and then you’ll be good to go!
This quick and easy process can save you time, hassle, and stress when filing your taxes.
STEP 4: Obtain your ITIN Number
Within 4-6 weeks you will get a letter from the IRS, giving you a number you are now assigned to if your application was properly completed and you qualified.
Tax-ID Mortgage Loan Application
Are you READY to apply for a Tax-ID Mortgage Loan?
Applying for an ITIN (Individual Tax Identification Number) is the first step in this process.
Knowing who needs an ITIN, understanding the pros and cons of obtaining one, and navigating the application process can be daunting. Don’t worry – we are here to guide you every step of the way!
In this article, we will provide you with all the necessary information about ITINs and walk you through the process of applying for a Tax-ID Mortgage Loan.
Once you have obtained an ITIN, the steps to get your dream home and mortgage loan are easy to follow.
Before you know it, you will have fulfilled your goals and be on the way toward homeownership.
Having an Individual Tax Identification number is the first step toward any kind of tax filing. Hence, Step 1 should be obtaining this unique identifier.
1. Request an ITIN from the IRS
To recap, ITINs are a useful option when applying for loans without an SSN or green card. It stands for an “Individual Tax Identification Number, also known as an ITIN, which is a 9-digit number assigned by the IRS. To learn more about it and how to get your own, please refer to the previous sections of this article.
2. Get a mortgage
Once you have your ITIN, you can begin the application process by reaching out to us.
When reaching out to us, we will work with you to ensure you gather the forms you need, including income verification, asset information, and more.
With a few simple steps and our support, you can quickly and easily access the funds necessary to reach your dream house.
- Sustainability proof
- Credit history
- Income verification
Establishing financial credibility is key for lenders to guarantee your reliability as a borrower. Demonstrating this will ensure you are trusted and can make loan payments when needed.
When taking out a loan, make sure you read the terms and conditions carefully.
Every lender will have different requirements, so it’s important to understand exactly what each one is looking for before making a decision.
All loan providers will generally require documentation to demonstrate your financial qualifications and stability.
It’s important to have these documents on-hand if you plan on applying for a loan.
3. Verify these pre-requisites
Filing your tax return with Form W-7 after the deadline can result in interest and/or penalties – so applying before the due date is best to avoid any unwanted charges. Doing this also helps ensure you remain eligible for an ITIN.
- Create a consistent rental history– An impressive two-year rent payment history is a great indicator of responsibility to potential lenders. Having a consistent track record of payments speaks volumes and can go a long way toward helping you get the loan you need. Showing that you can pay your monthly debts regularly and on time stands out even more.
- Employment History– Demonstrating a two-year employment history can be beneficial when applying for a Tax-ID loan as it shows prospective lenders your commitment to the job. This is a great way to ensure that you have the best chance of approval.
4. Search for a lending organization that serves ITIN holders
Doing a bit of research can help you find a lending group that accepts Individual Tax Identification Numbers or some assistance programs. We can help you find them!
In fact, there is one specific program that’s designed to facilitate the process of purchasing a house for people with ITIN:
→ Assistance Program for people with ITIN
When wondering how to buy a house with an ITIN, it is important to be aware of the assistance programs to better take advantage of the benefits. We want to share with you some of the details of this particular assistance program. This specific program requires a minimum 10% down payment instead of the 20-25% down payment required by other ITIN programs. There are some requirements to qualify for this program including:
- Work stability, consistent income.
- Having a solid credit score.
- Ability to demonstrate rent history for at least one year.
If you want to check if you qualify based on your specific situation, reach out to us by clicking here.
5. Pre-Approval Process
Before you sign off on the loan agreement, the lender will provide a thorough explanation of your repayment terms and analyze your credit history completely.
This way, you can make an informed decision and properly understand all duties associated with the loan.
When lenders assess an individual’s credit history, they consider a variety of factors like effective utilization of an ITIN, money transactions, payment of rent and utility bills, etc.
6. Find your dream home
Congratulations on getting approved for the loan! Now you can start searching for your dream home. You’ll need the help of a real estate agent to make this process easier and faster.
It’s important to make sure that the expenses of the house don’t exceed your pre-approval budget.
[Related Article: How to Increase the Mortgage Pre-Approval Amount?]
Once you have decided, reach out to your lending group team to close the deal.
Kudos for making it to the finish line of this guide and having gained the essential knowledge needed to comprehend Individual Tax Identification Number mortgages and how to buy a house with an ITIN in a hassle-free, seamless experience.
However, with the overwhelming number of mortgage options available, choosing the right one for your home can be an arduous task. That’s why we are here to help make this process simpler and stress-free.
Our experienced team of professionals can help you connect with the right lender for you and make your mortgage process much easier.
If you’d like us to guide you based on your specific situation, call us directly at (617)729-2967 or click here.