One of the big questions that immigrants ask themselves when they arrive in the United States is «How can I buy a house if i don’t have social security?». Social security is of vital importance when paying taxes or applying for a mortgage, among many other financial operations.
Learn more about how to get an ITIN in the web domain IRS.gov.
In case you have a ITIN and meet the necessary requirements that we will show you below, you could have the possibility of get a home loan without an SSN.
- 1 How do I build a credit history to buy a house if I don’t have Social Security?
- 2 What other credit alternatives are there to buy a house if I don’t have social security?
- 3 Can I make a big down payment and buy a house if I don’t have Social Security?
- 4 Do I have to have a reserve of money to buy a house if I do not have social security?
- 5 Do I have to have a registered employment history in order to buy a home if I don’t have Social Security?
The most important thing to access loans is to have a credit history, since with this, you can show potential creditors or lenders how you manage your finances.
Remember that credit has an etiological origin in “having confidence”; You must prove to credit institutions that you are “trustworthy.”
And if you don’t have a social Security number, the above might seem impossible, however, there are ways to achieve it.
Normally, those who arrive as immigrants have a ITIN, which allows them to obtain a secured credit card.
It is worth mentioning that the credit card guaranteed, as it is also called, has a security deposit. This deposit is equal to your line of credit.
For example, if you put in $500, you will effectively have a credit line of US$ 500. In the event that you do not comply with the debt, the company of the credit card will use the deposit money to pay your bill. Avoid it as it would be fatal for your financial goals!
On the other hand, already having a history with a secured credit card for 6 to 12 months, you can request one or two security cards, which, you are assigned a credit line what you can spend
It is important to maintain the required minimum monthly payments. However, it is better if you pay more than the minimum, even if you pay the balance due in full month by month.
The objective of all this is to regularly use the credit card as they will help you rack up a pcredit score and build your report.
On the website NationWideMortgageAndRealty.net offer a ITIN mortgage program that you can consult in detail.
It is worth mentioning that the most common alternative credit options are rent, school or university tuition and insurance payments.
If you pay utilities or any other bill regularly each month and on time, they can count too.
That said, in order for a lender to establish or develop a credit history Based on these accounts, you will need proof of your timely payments.
If so, you can show the lenders your canceled checks for the payments made per month, in the same way, you can give your bank statements to verify the withdrawals of said payments.
Additionally, it is favorable to have proof from the provider that you pay your bills on time.
The provider can complete a rent verification form. You can also submit a letter of explanation from the utility company or school, stating whether or not you pay your bills on time. In some Latin countries they usually call it “commercial references”.
In general, a credit history of 12 to 24 months is sufficient.
In such a case, lenders want to see that you have your own money invested in the house, even though you won’t be able to get the 3 percent down payment programs that those with a social Security number.
On the other hand, lenders will need proof of the origin of your funds for the initial payment.. Which means you’ll need to show at least the last six months of bank statements.
However, there are times when lenders require up to 12 months of bank statements to ensure that the money you use for a down payment is not a loan and is yours.
Most lenders prefer that you have some money reserve in your bank accounts.
The foregoing in order to cover the mortgage cost, also serves as emergency fund in case your income stops for some reason and you cannot continue paying the mortgage.
On the other hand, you should know that lenders measure your reserves based on the amount of mortgage payments cutlery.
For example, if the mortgage is US$2,000 and you have US$20,000 in savings, that means you have 10 months of reserves.
In other words, the more mortgage payments you can cover with your reserves, the better your chances of getting mortgage approval without having a social security number.
Finally, every lender wants to know if you have a stable and decent employment. Since it is an indication that provides greater security about future mortgage payments.
Without a steady job, you may be considered a high-risk subject for mortgage payment default. If you are an immigrant and have a stable job, you will have a strong reason to stay in the United States.
Remember that having a stable employment You give them to prove to lenders that you are able to pay each mortgage payment installment.
In general, an employment relationship of at least 2 years with the same employer is an indication for the approval of your mortgage loan.
However, in addition to your history, you must show that you have a future with the employer, that is, you will also be required to acknowledge that you have a stable long-term future with said employer, such as a multi-year contract. If the contract ends soon, it is not proof of stable employment.
surely you think How can I buy a house if I don’t have Social Security? It is so difficult?It’s not like that, calm down If you have all the requirements you can qualify without any problem.
Find an uncomplicated lender that accepts your ITIN and give you good rates and terms on the loan.