What is a foreign national or ITIN mortgage?
Foreign nationals, who are either U.S. resident or nonresident aliens with an individual tax identification number (ITIN), cannot qualify for conventional or government-backed mortgages in this country. The same is true for recipients of the Deferred Action for Childhood Arrivals (DACA) program, who also are not U.S. citizens but have key benefits such as employment authorization and protection from deportation.
ITIN and DACA recipients, however, are able to obtain a variety of nonqualified mortgages through private lenders that will either service the loans in their own portfolio or sell them on the secondary market. These loans cover a variety of borrower needs for both residential and commercial properties.
What are some types of foreign national or ITIN mortgages?
- Bank-statement loans for self-employed borrowers or those unable to provide a W-2 form
- Debt-service-coverage ratio loans for investment homes or income-producing properties
- Jumbo and super jumbo loans with higher downpayment amounts
- Fixed- and adjustable-rate loans with terms of three to 30 years
- Loans for borrowers with no credit scores or nonprime credit
- Asset-based loans that require cash reserves but no proof of employment or income
Who offers foreign national and ITIN mortgages?
Many non-QM lenders offer a variety of purchase and refinance loan scenarios for these types of borrowers. Although prime lenders tend to not offer mortgages to foreign nationals, high net worth individuals with proof of assets and income may be eligible.
Borrowers who need to close quickly and have sufficient downpayment capabilities may be a good fit for hard money lenders. Residential construction loans and commercial mortgages or refinances may also be available. Explore options for your client’s unique situation at LenderSearch.com.