Empowering Homeownership with the ITIN Non-QM Loan Program

Homeownership has the power to transform lives and communities. For individuals without a Social Security Number, the ITIN (Individual Taxpayer Identification Number) Non-QM Loan Program provides a pathway to securing the financing needed to buy a home, refinance an existing mortgage, or consolidate debt.

Understanding the ITIN Non-QM Loan Program

This program is specifically designed for borrowers who have a valid ITIN. It offers an opportunity for those without an SSN to access home financing, ensuring a broader segment of the population can achieve their homeownership dreams. Here’s a closer look at the key features and benefits of this program:

Key Features of the ITIN Non-QM Loan Program

• Flexible Loan Terms: Available as a 30-year fixed-rate mortgage, providing stability and predictable monthly payments.

• Generous Loan Amounts: Borrowers can secure loans ranging from $125,000 to $1,500,000, accommodating a variety of property types and prices.

• High Loan-to-Value (LTV) Ratios: Maximum LTV ratios depend on the specific loan amount and borrower qualifications, with a cap at 75% for DTIs over 45%.

• Multiple Documentation Types: Choose from Full Doc, Bank Statements, or 1099 documentation, allowing for greater flexibility in proving income.

Eligibility Requirements

• Valid ITIN: Borrowers must have a valid ITIN issued prior to application.

• Identification: An unexpired government-issued photo ID and either an ITIN card or an IRS letter verifying the ITIN.

• Residency Proof: Government-issued ID suffices; no visa required for ITIN borrowers.

• Credit Requirements: Each borrower must have two FICO scores, with the primary wage earner having at least three active tradelines open for 12 months or two for 24 months.

Credit Events and Income Verification

• Credit History: Adverse credit events like bankruptcy or foreclosure must be at least 36 months old at the time of application.

• Income Documentation: Verification of income through 4506-C transcripts, pay stubs, and tax returns based on the chosen documentation type.

Reserves and Asset Requirements

• Reserves: Borrowers need 3 months of PITIA reserves for loan amounts under $1,000,000 and 6 months for loans equal to or exceeding $1,000,000.

• Acceptable Assets: Includes checking/savings accounts, stocks, bonds, mutual funds, retirement accounts, and more. Business assets for self-employed borrowers are acceptable with proper verification.

Gift Funds and Appraisal

• Gift Funds: 100% gift funds are allowed for owner-occupied transactions, provided by family members. These cannot be used to meet reserve requirements.

• Appraisal: One full appraisal is required for loan amounts up to $1.5M, with an additional desk review (CDA) if the CU score exceeds 2.5.

Ineligible Borrowers

While the ITIN Non-QM Loan Program is inclusive, certain groups are ineligible, including U.S. citizens, foreign nationals, persons with diplomatic immunity, and transactions involving trusts or organizations.

Conclusion

The ITIN Non-QM Loan Program is more than just a loan option—it’s a bridge to homeownership for those who might otherwise be excluded. With flexible terms, substantial loan amounts, and an inclusive approach to documentation and credit requirements, this program empowers a diverse range of borrowers to achieve their homeownership dreams. If you or someone you know could benefit from this program, explore your options today and take the first step towards your new home.