If you are self-employed or an undocumented immigrant, you may not qualify for a conventional mortgage. However, you can still finance your dream home by applying for an individual tax identification number (ITIN) home loan. A ITIN home loan in Los Angeles would allow people without a social security number to access mortgages.
Requirements for ITIN Home Loans in Los Angeles
Typically, lenders will require you to provide:
• Your ITIN number
• Prove of a minimum of two-year work history (W2 or self-employment) and one year prove of stable income
• Self-employed persons can apply using their bank statements instead of tax returns.
• Some lenders accept gift funds
• Pay stubs for the past 30 days
• A minimum credit score of 600 though some lenders accept applicants without a credit score
• A minimum of 15% down payment depending on your credit score
• Have filed at least one tax return using your ITIN number
ITIN down payments and interest rates are often higher than conventional mortgages. However, ITIN home loans do not require you to provide the legal documents to prove US residency.
ITIN Home Loans for Self-Employed Persons
If you are in self-employment, you can qualify for an ITIN loan. You will need to provide proof of self-employment for a minimum of two years. You can also be eligible if you are an independent contractor who gets a 1099 form. You do not need to provide tax returns, but the lender will require 12-month bank statements showing the deposits you have put in your accounts. The lender uses the deposit to determine your average income.
Types of Properties You Can Buy with An ITIN Loan
Most lenders will allow you to acquire the following property categories as long as you use them as your primary residence:
• Single Family Homes
• 2-4 Unit Residential Buildings
• Second Home
• Rental Property
Tips for Increasing Your Chances of Getting An ITIN Home Loan in Los Angeles
You may not satisfy all the conditions set above, but most lenders are flexible and will consider compensating factors that can help you qualify for the loan. Some of the things that can help your case include:
- Employment: make sure you are in steady employment because most lenders will look at your employment history.
- Bank accounts: open a bank account and deposit enough money to cover the down payments a few months before applying for the mortgage.
- Credit card history: if you do not have a credit card, apply for one a few months before applying for the loan and use it to handle transactions. Make sure you pay on time to earn a high credit score.
- Alternative sources of credit record: you can prove your creditworthiness by providing statements of utility bills and insurance premiums showing that you make payments on time.
If you would like to apply for an ITIN home loan in Los Angeles and other parts of California, we can help you get a suitable lender. Fill out this information & contact form to get our assistance.