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Home Loans For Immigrants With ITIN Mortgages
By: Charles Essmeier
The mortgage industry has long been able to adapt to changing market conditions.
When interest rates rose to double-digit levels in the late 1970's, the industry
made more adjustable-rate mortgages available. When the savings rate began to
drop and Americans had less to put down on homes, the industry made more
flexible loan products available that did not require as large a down payment.
And now, as immigrants begin to comprise a larger and larger portion of our
population, the lending industry is begun to introduce loans that are tailored
to an immigrant population that may not have solid credit histories or Social
Security numbers.
These loans, known as ITIN loans, are offered to illegal immigrants that do not
have a Social Security number. They can qualify for the loans by obtaining an
Individual Taxpayer Identification number (ITIN) from the Internal Revenue
Service. The IRS issues these numbers to people who are required to pay taxes
but are ineligible for a Social Security number. The government uses these
numbers for tax purposes only. A few small banks, as well as national banks
Citibank and Wells Fargo, have started to issue loans to customers who have an
ITIN but not a Social Security number. Most of these loans have been issued in
California, but they will probably be available in other places soon.
The process of obtaining an ITIN loan is somewhat more complicated than that of
applying for a conventional mortgage. Applicants with an ITIN usually have a
credit history that is less well documented. As a result, the usual background
work required issuing such a loan is more complicated and more time consuming
than for a conventional mortgage. In addition, fees and interest rates will tend
to be higher than for other types of loans in order to compensate lenders for
the additional trouble and additional risk.
While there is plenty of opposition to lending money to people who are here
illegally, few would argue that a neighborhood that consists of homeowners,
rather than renters, is a better neighborhood for everyone. Owners are much more
likely to take care of their property and show concern for the neighborhood as a
whole than are renters. Thus, any lending plan which encourages people to buy,
rather than rent, is good for everyone.
About the Author:
Charles Essmeier is the owner of Retro
Marketing, a firm devoted to informational Websites, including www.homeequityhelp.net, a site devoted to information regarding home equity lending. |
