- Differentiate ITIN borrowers from Foreign Nationals
- List documentation alternatives to SSN, W-2, and US credit
- State typical down payment and FICO requirements
- Identify lenders and product types that serve these buyers
ITIN Borrowers
ITIN (Individual Taxpayer Identification Number) borrowers live and work in the US but lack a SSN. They file taxes annually with the IRS. Specialty lenders accept 2 years of tax returns, 12–24 months of housing payment history, and 10–20% down. Rates run 1–2% above conforming.
Foreign Nationals
Non-resident buyers (often investors) can purchase through Foreign National programs. They typically need a valid passport and visa, an international credit reference letter (often 3–4 trade references), 25–35% down, and 6–12 months reserves.
Documentation Substitutes
- Two years of ITIN tax returns or international tax returns
- 12–24 months canceled rent checks or bank statements showing housing payment
- Letters of reference from utilities, telecom, banks
- International credit reports (e.g. Nova Credit) when available
- ITIN buyers need 2 years of tax returns and 10–20% down.
- Foreign Nationals need 25–35% down and reserves.
- Expect a rate premium of 1–3% over conforming.
Module 20 Exam — 5 questions
Pick the best answer for each question. Pass with 80% or higher to mark this module complete.
- 1.
An ITIN borrower files taxes using:
- 2.
Typical down payment for an ITIN loan is:
- 3.
Foreign National programs typically require:
- 4.
Documentation for a thin-credit ITIN file can include:
- 5.
ITIN loan rates compared to agency rates are usually:
0 of 5 answered