Is it possible to apply for a mortgage loan in North Carolina to purchase a home with an ITIN number? The answer is yes. Here we tell you about these. credits with the ITIN Number.
For years, many undocumented Latino families in North Carolina have paid high rents to live in mobile homes, trailers, or shared lots in community parking lots.
In some cases, they pay up to $1,200 a month for deteriorating structures, without a formal contract, at risk of eviction, and with no option to build stability.
Despite the fear generated by the current political context, buy a house with ITIN number Not only is it possible: it is legal, accessible, and can mean a profound change in a family's life.
“Yes, you can buy a house with an ITIN” , says Oscar Corrales, a real estate agent with 15 years of experience in North Carolina.
In an interview with Enlace Latino NC , explained that people who file taxes with a Tax ID can obtain mortgage loans if they present two years of tax returns, a passport or other identification, and proof of income.
If they don't have a credit score, they can present monthly payment slips for utilities like water, electricity, or car insurance. "What the bank wants is proof that the buyer pays their bills on time," he said.
Related: Get help in North Carolina applying for your ITIN Number
Which institutions offer loans to people with ITINs to buy a home?
Oscar Corrales mentions three entities that currently offer affordable mortgage loans for people with ITIN in North Carolina.
The first is the Latino Cooperative (Latino Community Credit Union) , which operates in various cities across the state. “It has good terms. Rates are around 8.5%,” says Corrales. Although its branches don't cover the entire territory, anyone living in North Carolina can apply, regardless of whether they live near an office.
Alternatively Self-Help Credit Union , headquartered in Durham. According to Corrales, it is the only entity that in some cases allows access to a loan with only 5% of the deposit. down payment (down payment). This reduced percentage is only granted to people with a very solid financial profile. "But interest rates are higher, more like 9%," he warns.
Finally, highlights Federal Savings Bank , a national institution that also works with individuals with ITINs. “It offers the lowest interest rate of all at 8%. It's faster and a bit more flexible than the other two,” Corrales explained.
While other lenders also offer mortgages to people without a Social Security number, Corrales suggests caution: many require a 15% to 30% down payment, with interest rates that can reach 11%. "I don't think they're competitive, nor are they the best programs for my clients," he warned.
Three things you should keep in mind when buying a house with an ITIN
If you're thinking about buying a house with ITIN There are three key elements that determine whether you'll be eligible for a mortgage loan. Oscar Corrales explains that he always starts by asking his clients three key questions: How's your credit? How much have you saved? And how does your income compare to your debt?
The first aspect is the credit history "If they have a score, perfect," Corrales said. But many undocumented people don't.
In those cases, he recommends starting construction or ensuring you have utility bills in your name, such as electricity or water. This allows you to generate what's known as alternative credit, i.e., evidence that you pay your monthly bills responsibly.
The second factor is the saving . To access a loan with ITINMost financial institutions require at least a 10% down payment, in addition to closing costs.
In practice, that means having between $30,000 and $40,000 to spend if you want to buy an average home in cities like Raleigh or Charlotte.
The third point is the payment capacity , which is calculated based on current income and debt. "We make sure to check that the income versus debt gives them the ability to be approved by the bank," he explained.
If a person doesn't have the necessary income on their own, all is not lost: "If they are short, they can apply with a relative, a spouse, or a child to improve their income."
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What are the biggest obstacles to buying a home with an ITIN?
Although there are real options for buying a house with ITIN Corrales warns that the main obstacle is not economic, but mental.
“The biggest obstacle is thought, mindset"He said. "People need to decide they want to achieve it, know they deserve it, and that it's worth it."
Another factor is the lack of reliable information. "Many people have been renting for 20, 25, or XNUMX years and, in many cases, haven't bought a home due to a lack of professional information," he said.
According to Corrales, many people don't know what they qualify for or where to seek appropriate help.
He also acknowledges that fears about the current immigration situation can hinder important decisions. However, he highlights the Latino community's ability to move forward despite the challenges.
“Our community is very strong. It overcomes. While some people choose to wait, many others continue to move forward,” she concluded.
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