ITIN is the abbreviation for Individual Tax Identification Number. It is the number issued to individuals who do not have or are not eligible to have a Social Security Number. They are used by individuals without Social Security Numbers for federal tax filing purposes with the IRS.
Banks don’t typically lend to those who have an ITIN. This isn’t because they aren’t eligible to buy property or get a mortgage. There is no restriction on buying a home just because one has an ITIN. Banks just don’t lend to them.
The most common solution for someone with an ITIN to own real estate is through private money loans (aka hard money). This is because private lenders aren’t so worried about the little details the banks focus on. Instead, they look more at the property value and the down payment than anything else.
Another big problem for many of these buyers is that they don’t have sufficient credit. Often, they think they can’t get any kind of credit unless they have a social security number. This is completely untrue. I have worked with many clients who have well established credit that they used their ITIN to get.
(For more information on credit and how to establish it, go to CrackMyCredit.com.)
Fortunately, private lenders aren’t as worried about credit as the banks so even if you have no credit at all, that shouldn’t stop you from getting a mortgage to buy a property.
The only real requirement for buying a property (other than having the money or getting a loan to buy it) is that you have to be able to prove your identity and you have to be able to prove where the money came from. In other words, just because someone has an ITIN is no reason they can’t own real estate.