(Individual) Tax ID Number-TIN/ITIN
If you do not have a social security number and want to apply for a mortgage, then a TIN number is what you want!
What is TIN?
A TIN is used similarly to Social Security Numbers (SSN). TIN’s have been used for years to allow immigrants the option to open up bank accounts and obtain a credit card. A TIN number is for qualified immigrants who do not have a social security number. It is given to immigrants or people who have little to no credit lines established.
TIN helps provides people an option for a mortgage loan if they do not have one of these things:
- Social Security Number
- Employment Authorization
- Migratory Status
Advantages of filing taxes and attaining a TIN
- Proof that you have lived in the United States
- More authentic citizen
- Opportunities to get a cash refund
- You are obeying the law of the United States to pay taxes
- Provides ease when applying for loans and mortgages
- Can help you to apply for citizenship in the future
- Potential ease of opening a bank or credit card
- Best of all you will be establishing credit!
How to Request a TIN
- Fill out an application to receive a TIN.
- Attach a valid federal income tax return unless you qualify for an exception
- Include proof of identity and/or copies of foreign status document
- Send application and supporting documents to:
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
Go to http://www.irs.gov/Individuals/General-ITIN-Information for a full list of instructions. If approved you will receive you TIN within 7 weeks.
TIN/ITIN First Time Mortgage Buyer
Since the Patriot Act, TIN is now accepted as an acceptable form of identification. Typically to get a loan you need to provide two years of employment and income tax deduction.
There are alternate forms of documentation that can be used to prove good credit. Phone payments, utility bill payment history and other standard credit documentation are all ways to prove credibility.
Because of the higher risk that comes with not having a SSN, most big banks such as, Wells Fargo, Bank of America and Citibank do not take a TIN.
Luckily there are many other smaller lenders and credit unions that do not require a high credit score and will accept TIN. Make sure to research smaller lenders or credit unions and apply to several to have more than one option to choose from.
Choose the lender that best fits your financial goals and budget. Something to be aware of is that in addition to fees associated with a TIN, interest rates will be higher than the national average, typically 3-4% more.
Qualifications for a TIN mortgage
You need to provide enough information to prove your willingness to repay a loan. Typically credit cards prove a reliable source for lenders. Lenders will look for 6-12 months good history of you paying off your bills. Borrowers with TIN numbers must provide most current immigration documentation.
Steps in Getting a Mortgage
1. Access your finances
This is an important step because you do not want to go over your monthly or annual budget. Set a goal to help you stay within your means. Understanding your budget and finances will help you in moving forward with a TIN mortgage.
2. Get pre-approved
This step helps save time to see where you can start looking in terms of what homes you could afford and makes the process easier as you officially apply for a mortgage.
3. Find a home
Now that you know what your price range is and that you have been pre-approved it is time to start looking for your home.
4. Get a mortgage
5. Close on your new home!
Yes you made it! Time to move and settle into your home. Don’t forget to keep up on payments for your mortgage.
Frequently Asked Questions about TIN
Do I need to have a perfect credit score to receive a mortgage?
No, if you have a TIN and pre-established credit or good spending then with some research you should find a lender who will help you to get a mortgage.
Can a person who is not a citizen, but who pays taxes with a TIN, get a mortgage?
Absolutely, in fact if you are paying taxes it should be easier to obtain a mortgage because you would be a reputable client.
Can I buy a house with a TIN?
As long as you identity can be verified and you have good credit than you should be fine!
Can I get a loan with a Taxpayer Identification Number?
Yes you can, just with a bit higher rates.
Will my information be reported to the United States Citizenship and Immigration Services?
No, if you get a TIN it is only reported through the IRS and they don’t care if you are a resident or not, they just want to make sure you are paying taxes.
What is the difference between fixed rate TIN loans and adjustable rate TIN mortgage loans?
Fixed rate is a good option for people that are planning on staying in their home for a long period of time. If you know it will be a short period of time or you are planning on flipping your home than an adjustable rate is the better option for you.
Why can’t I just use FHA to obtain a mortgage?
The Federal Housing Administration (FHA) requires a social security number to obtain a loan