ITIN Number loans are a facility extended to foreign nationals which enables them to apply for and get mortgage loans. The idea behind ITIN number loans is to provide equal opportunity to foreign nationals when it comes to buying and owning assets, particularly property, in the US. All resident and non-resident aliens residing in the US who do not hold a Social Security Number are eligible to apply for ITIN Number home loans.
Despite the equal-opportunity connotation that this notion carries, the concept of ITIN number home loans is a little debatable. The facility is extended to every foreign national who is residing in the country, whether legally or illegally. This fact has clouded ITIN Number home loans with controversy, and made many lenders reluctant to offer this service.
Besides this apparent problem with applying for ITIN number loans, there are some other inherent constraints too. Some of these are as follows:
Problems with Income Verification
As pointed out above, undocumented workers working in the US are also allowed the facility of ITIN Number home loans. Because these workers are undocumented, their employers might not be willing to completely reveal their employment details. Similarly, most of the wages these workers receive are in cash, without any formal documentation. This lack of proof to verify income makes it a little harder for lenders to offer ITIN loan services.
Problems with Obtaining Credit History
In the US, history of all credit transactions is reported on an individual’s Social Security Number. In the event that an individual does not hold an SSN, it gets a little difficult to obtain his or her credit history. This is an inherent problem when it comes to applying for ITIN Number home loans. Lenders seek credit history to evaluate the creditworthiness of the applicant. But because those eligible for such loans are ITIN, and not SSN, holders, it gets a little hard for lenders to obtain relevant credit history.
Problems with Obtaining Alternate Credit History
When lenders are deciding whether or not to extend ITIN Number home loans to potential applicants, it is important to evaluate their credit worthiness. At times, however, credit history is not available. In such instances, lenders can use alternate credit history like rental history or past utility bills. The problem that however arises is that some undocumented workers might not have any form of payment history in their names. This makes it very difficult for lenders to assess the applicant’s payment history, and acts as a major obstacle in approving ITIN loans.
Lack of Documentation
Because of the absence of adequate documentation on the part of the applicants, and because of the controversial nature of these loans, many lenders are often reluctant to offer ITIN Number home loans. This lack of documentation increases the risks involved in such transactions as there is not enough evidence to substantially back the details provided by the applicants.
If you want to apply for an ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.