An ITIN loan is a typical loan like a normal buyer would receive, only for people who have an Individual Taxpayer Identification Number (ITIN) rather than a Social Security Number. These people are generally greencard holders or guest workers who have permits to work in the United States legally, while not being citizens or permanent residents.
This loan product works almost exactly the same as a traditional mortgage loan, allowing a whole class of people excluded from FHA loans to achieve home ownership. However, because they do not have access to traditional FHA loans, they will need to put down more than the 3.5% that the FHA offers to first-time home buyers -- generally 15% or more.
As well, the interest rate can be a bit higher for ITIN loans, generally by around 3%. With today’s low rates, however, that puts the interest rate of an ITIN loan at around 6%, which is still good for a non-traditional loan product.
