The Ultimate Guide To ITIN Mortgage Loans
Written by Monica Serva, NMLS# 4458 Last updated 8/15/2023
ITIN Loans: Prysma Lending Group's Ultimate Guide
Why We Wrote This ITIN Mortgage Loan Guide
My name is Monica Serva and I started Prysma Lending Group in 2003 to help individuals accomplish their dream of homeownership.
I saw too many companies treating their clientele poorly, especially minorities and underprivileged groups. Prysma Lending Group works in the best interest of our clients, regardless of their color or ethnicity.
A large group of individuals in the U.S. that need help with mortgages are those without a social security number. Many banks and lending institutions do not want to deal with the extra work of offering ITIN loans, but Prysma Lending Group is here for you.
This guide was created to help you understand the purpose of Tax IDs, how to receive yours, your mortgage options with an ITIN and what the application process is like.
Everything you Need to KnowAbout ITIN Loans
Chapter 1 – Understanding Tax ID (ITIN) Numbers
Learn what an Individual Taxpayer Identification Number (ITIN) is and what individuals require them upon obtaining a home mortgage. Also review the difference between an ITIN number, a social security number or an Employee Identification Number (EIN).
Chapter 2 – Receiving a Tax Identification Number (ITIN)
After gaining insight about what Tax Identification Numbers are, you’ll need to understand how to receive your Tax Identification Number. We’ll be going over all of the necessary steps as well as how to check up on your application.
Chapter 3 – The Advantages & Disadvantages of Tax ID Loans
There are many moving parts when it comes to getting an individual Tax Identification Number. In this chapter we go over both the advantages and disadvantages to getting a Tax ID loan to help making your decision on pursuing one much easier.
Chapter 4 – What Do I Need to Qualify for an ITIN Loan?
There are various qualifications for obtaining an Individual Tax Identification Number. In this chapter we discuss these qualifications, what you need to meet these qualifications, and what you do not need to qualify.
Chapter 5 – The Application Process for a Tax ID Mortgage Loan
This chapter will guide you through the process of Tax ID Mortgage Loans. That’s right – we’ll be discussing the application process and what you need to be aware of while you apply.
Chapter 6 – Recap & Your Next Steps
Congratulations, you are finally an expert on Tax ID Loans! You have made it to the last chapter in our Ultimate Tax ID Loan Guide. In this chapter we will go over the previous chapters, allowing you to review the process and key information regarding Tax ID Loans.
Chapter 1 - Understanding Tax ID (ITIN) Numbers
What is an ITIN Loan?
An ITIN Loan, otherwise known as a Tax ID Mortgage Loan or Tax ID loan, is a mortgage loan that can be acquired by a perspective homeowner with exclusive use of an ITIN card. ITIN Loans are frequently used to purchase homes by people who do not have a social security number.
ITIN loans differ from other types of loans like Conventional Mortgages, FHA loans, and Adjustable Rate Mortgages in that eligibility can be given to those who do not have a social security number, making ITIN loans ideal for residents and non-residents of the U.S who are not citizens, as well as spouses of those individuals.What is an ITIN? (Individual Taxpayer Identification Number)
An ITIN is a nine-digit number assigned by the IRS. The number always begins with a 9 and has a 7 or 8 as the fourth digit. The IRS issues ITINs to individuals who are required to have a Taxpayer Identification Number and cannot obtain or are not eligible to receive a Social Security Number.
A Tax Identification Number is a term used to describe one of several forms of identification that the Internal Revenue Service (IRS) provides. An ITIN is a unique identifier that helps you interact with the IRS. Other types of identification include a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Employer Identification Number (EIN), an Adoption Taxpayer Identification Number or a Preparer Tax Identification Number.
ITINs can be used as an identifier for individuals interested in applying for a home mortgage to achieve homeownership.Who Needs an Individual Taxpayer Identification Number (ITIN)?
In general, ITINs are assigned by the IRS to individuals who are required to have a Tax Identification Number but are not eligible to receive a Social Security Number (SSN) from the Social Security Administration (SSA) or other forms of identification.
You may need an ITIN if you are a:● U.S. resident alien (based on days present in the United States) filing a U.S. tax return and are not eligible to receive a Social Security Number● Non-resident alien filing a tax return and are not eligible to receive a Social Security Number● Dependent or spouse of a U.S. citizen or resident alien● Dependent of a spouse of a non-resident alien visa holder
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. Basically, if you don’t have an exception to file taxes in the U.S. and don’t have a social security number, you can receive a ITIN from the IRS.What is the Difference Between an ITIN and other Tax Identification Numbers?
Individual Taxpayer Identification Number (ITIN)Not everyone qualifies for a SSN. For example, you might not qualify if you are not a United States citizen or if you do not meet certain government requirements such as the dependent test. Those who do meet the requirements are able to obtain an ITIN by completing a Form W-7, as well as completing supplemental documents that help with the confirmation of being a nonresident in the U.S.
Social Security Number (SSN)Most likely, you already have a basic understanding of Tax Identification Numbers if you are familiar with the concept of Social Security Numbers. They are the most common forms of TIN, and are frequently applied for by parents on behalf of their children for the purpose of income taxes. This process is often free, but it can include certain fees for new parents in which they use a SSN to claim the child as a dependent.
Employer Identification Number (EIN)You may have also heard of an EIN. EINs are used by employers, sole proprietors, corporations, LLCs, partnerships, non-profit associations, trusts, estates of decedents, government agencies, certain individuals, and other business entities. Companies use an EIN number for identification when paying taxes. This number does not apply to you for the purposes of obtaining a home mortgage. However, in the future it may be beneficial to obtain an EIN.
Without one you cannot:● Protect your personal assets such as your home● Start a business● Set up a retirement account
Adoption Taxpayer Identification NumberAn Adoption Taxpayer Identification Number is used as a temporary number for a child with adoptive parents who cannot obtain a Social Security Number.
Preparer Tax Identification Number (PTIN)This is an identification number that a paid tax return preparer uses when preparing U.S. federal tax returns or claims that are to be submitted to the IRS. If you have someone who prepares a substantial portion of your tax return for you and charges you a fee, they must receive a PTIN from the IRS.Can I Apply for a Mortgage with Just My Tax ID (ITIN)?
Despite what you may have heard, someone without a social security number can in fact own a home. Your Tax ID (ITIN) can be used to apply for a home mortgage, so you can purchase and own a home.
Now that you have some practical knowledge on the terminology of Tax ID Numbers, let’s jump into the next chapter on how to apply for an Individual Taxpayer Identification Number (ITIN).
Chapter 2 – Receiving a Tax Identification Number (ITIN)
Now that you understand the basics of what a Tax ID number (ITIN) is, you're ready to learn the first steps to obtaining one! In the journey of obtaining an ITIN loan and owning your dream home, receiving a tax ID number will likely be the most time-consuming and complex part of the process (depending on the real estate market of course!) The application process can take a little over a month (4-6 weeks), but don’t worry, this is actually quite a short processing time for something that involves government papers. This whole process is less painful than going to the DMV, and will be completely worth it at the end of your journey.
Below are just some basic facts you should know before we go through each individual step to obtain an ITIN number.
Chapter 3 – The Advantages & Disadvantages of Tax ID Loans
Many of us have been taught to create a pros and cons list since we were young, but now we are going to create one for one for Tax ID loans which can assist you in obtaining your dream home. There are many different components we will look at to help you decide if getting an Individual Tax Identification Number is right for you.
Ultimately, in the long run, it can help you obtain a mortgage which is incredibly important. The advantages tend to outway the cons, and with expertise help and assistance from lending groups such as the experts of Prysma Lending group, the disadvantages become easy to handle. However, this developed list will allow you to see both sides of the coin, with both positives and negatives listed about Tax ID loans so you can make a non-bias decision.
Chapter 4 – What Do I Need to Qualify for an ITIN?
You’ve done your research, made a pros and cons list and are now wondering what the heck do you even need to qualify for an Individual tax ID Number? Well if you have been following the past couple chapters you already have quite a great understanding of what you will need when you actually go to apply. This chapter will make sure you know the essential qualifications so you can recieve your ITIN and succeed at getting your dream home.
We will first begin with what you DO need to have to qualify, and then later tell you exactly what you DO NOT need to get an ITIN.
Chapter 5 – ITIN Loan Requirements and Application Process
Now that you understand the essentials of securing an ITIN, you're ready to take the next step: applying for an ITIN loan. Compared to the steps taken to acquire your Individual Tax Identification Number, the steps to apply and becoming eligible for an ITIN Loan are much simpler. In no time you will be able to obtain your dream home and retrieve an actual mortgage loan.
Since you've come this far in the guide, you understand step 1 of the process thoroughly: obtaining your ITIN. From there, there are five remaining steps which you can find outlined below:
Chapter 6 – Recap & Your Next Steps
The process of obtaining your dream home starts with you. In chapter 1, you learned that obtaining an Individual Tax Identification Number (ITIN) is the first step to obtaining a mortgage and your own home. An ITIN is a nine- digit tracking number that allows you to apply for mortgages without having a social security number or green card.
Unfortunately, not everyone is eligible for an ITIN. In chapter 2 you learned about eligibility requirements and the application process. You need to have the necessary documentation and fulfill all requirements and then submit a completed Form W-7 to the IRS. You may also need to complete other supplemental documents that the IRS requires. After you submit your application, expect 4-6 weeks of wait time. Make sure to consider this wait time if you are hoping to apply for a mortgage in the near future.
Once the long application process wraps up, you are ready to look at potential mortgage applications. But before you do that, chapter 3 listed out the advantages and disadvantages that you will run into with ITIN (Tax ID) mortgage loans.
Some important pros to consider that were listed in chapter 3, are that no Social Security Card, or green card are needed to retrieve an Individual Tax Identification Number. You are also able to use an Individual Tax Identification Number to refinance mortgages, and build credit for future large purchases.
Some disadvantages given were that there are definitely time constraints to obtaining an ITIN, there are high interest rates when taking out a Tax ID loan with an individual tax identification number, and most banks do not provide the ability to take a Tax ID loan with an ITIN. Theses are all very important to go over and review before applying for an Individual Tax Identification Number to ensure the best ITIN experience for you.
As chapter 3 weighed out the pros and cons of you getting an Individual Tax Identification Number, chapter 4 gave you all the qualifications you needed to have to qualify for an Individual Tax Identification Number.
Finally, once you fully qualified for your Individual Tax Identification Number you were able to reference the last chapter, chapter 5 on how to obtain the Tax ID loan itself. A key note was to be able to show your financial credibility to loaning groups with rent history, employment history, or financial documents to show you are a reliable person to lend to.