If you file your taxes with an Individual Taxpayer Identification Number, you can still buy a home in California, but the loan options work differently. Most government backed programs require a Social Security number, so ITIN buyers usually rely on programs that lenders design themselves. This guide explains who ITIN loans are for, which rules changed in 2025, what lenders typically ask for and how to prepare.
Quick answer
An ITIN loan is a mortgage for borrowers who file federal taxes with an IRS Individual Taxpayer Identification Number instead of a Social Security number. FHA loans require a valid Social Security number, and since May 25, 2025 FHA no longer accepts non permanent residents. Fannie Mae accepts an ITIN only for borrowers who also meet its legal residency requirements. As a result, most ITIN buyers use non QM programs set by individual lenders, which often ask for two years of tax returns filed with the ITIN, a larger down payment and cash reserves, and which usually carry higher rates than conventional loans.
What is an ITIN and how do you get one?
An ITIN is a nine digit number the IRS issues to people who need a U.S. taxpayer identification number but are not eligible for a Social Security number. It is used for federal tax purposes only. It does not authorize work or provide Social Security benefits, and the IRS says it creates no inference about immigration status.
- How to apply: file Form W7 with a federal tax return and original or certified identity documents, either a passport alone or two or more other current documents. You can apply by mail, by appointment at an IRS Taxpayer Assistance Center or through a Certifying Acceptance Agent.
- Timing: the IRS usually responds in about seven weeks, and up to eleven weeks during tax season or when applying from abroad.
- Keep it active: an ITIN expires if it is not used on a federal tax return for three consecutive years. ITINs issued before 2013 that were never renewed have expired.
Which loan programs accept an ITIN?
| Program | ITIN borrowers | Key rule |
|---|---|---|
| FHA | Not eligible without a Social Security number | Every borrower must provide a valid Social Security number. Since May 25, 2025, non permanent residents are no longer eligible. |
| Conventional (Fannie Mae) | Only with legal residency | Fannie Mae accepts a Social Security number or an ITIN, but every borrower must also meet its legal residency and documentation requirements. |
| USDA | Generally not eligible | Applicants must be U.S. citizens, non citizen nationals or qualified aliens. A temporary expansion for other non citizens ended March 18, 2025. |
| CalHFA | Residency required | Every borrower must be a U.S. citizen, U.S. national or qualified alien. |
| ITIN (non QM) | Designed for ITIN borrowers | Rules are set by each lender. |
In practice, a buyer with an ITIN and no Social Security number cannot use FHA, and conventional financing only works with documented legal residency. That is why most ITIN purchases in California are financed through non QM programs.
How do ITIN loans work?
ITIN loans are non qualified mortgages, often called non QM loans. Lenders keep them or sell them to private investors instead of Fannie Mae or Freddie Mac, and each lender sets its own rules for credit, down payment, reserves and property types. That means terms vary more than they do for conventional loans, and shopping matters.
Federal ability to repay rules still apply. The lender must make a reasonable, good faith determination that you can repay the loan, using third party records to verify your income, assets, debts and credit history. Many ITIN buyers use these programs as a first step and refinance later if their situation or eligibility changes.
What do ITIN lenders typically ask for?
Requirements differ by lender and change often, so treat these as typical ranges rather than fixed rules:
- ITIN documentation: the IRS letter that assigned your ITIN and proof that it is current.
- Tax returns: commonly two years of federal returns filed with your ITIN, along with W2s or 1099s. Self employed borrowers may be offered bank statement options by some lenders.
- Identification: a government issued photo ID such as a passport. Accepted forms of ID vary by lender.
- Credit: a traditional credit report if you have one. Some lenders accept alternative credit, such as a history of on time rent, utility and phone payments.
- Down payment: often 10% to 20% or more, depending on credit, the loan amount and the program.
- Reserves: several months of mortgage payments left in the bank after closing is common.
- Documented funds: bank statements that show where your down payment came from, plus gift letters where the program allows gifts.
Tip: Keep every deposit traceable. Large cash deposits that cannot be documented are a common reason ITIN files slow down or stall.
Buying with an ITIN?
Jon can review your tax returns and savings and show which ITIN programs you are likely to qualify for.
How can you prepare for an ITIN mortgage?
- File federal taxes every year with your ITIN. It keeps the ITIN active and builds the two year history most lenders want to see.
- Report all of your income. Lenders qualify you on the income shown on your returns, so unreported income cannot help you qualify.
- Keep your savings in a bank account. Funds that have been in an account for several months are much easier to document than cash.
- Build a payment history. Pay rent, utilities and any credit accounts on time, and keep records you can share.
- Save for the down payment and reserves. Plan for a larger down payment than conventional programs require, plus a cushion for closing costs.
- Get preapproved before you shop. A preapproval shows sellers you are ready and tells you your price range before you fall in love with a home.
How should you compare ITIN loan offers?
- Use the Loan Estimate. Every lender must give you this standard form, which makes it easier to compare the rate, APR, points, lender fees and cash to close side by side.
- Ask whether the rate is fixed or adjustable. If it is adjustable, ask when it can first change and how high it can go.
- Compare on the same day. Rates move daily, so request quotes from two or three lenders within a short window.
- Work with licensed professionals. You can confirm any loan officer’s license on NMLS Consumer Access, and you should never agree to misstate your income, identity or occupancy.
Frequently asked questions
Can you buy a house in California with an ITIN?
Yes, through ITIN mortgage programs offered by some lenders. These are non QM loans with their own rules, because FHA requires a Social Security number and conventional loans require legal residency.
How much do you need to put down on an ITIN loan?
It varies by lender and program, but down payments of 10% to 20% or more are common. A stronger credit history and more savings can widen your options.
Can you get an FHA loan with an ITIN?
No. FHA requires a valid Social Security number for every borrower, and since May 25, 2025 non permanent residents are no longer eligible for FHA loans.
Do ITIN loans have higher interest rates?
Usually, because they are non QM loans that lenders keep or sell to private investors. How much higher depends on your credit, down payment and the lender.
Does an ITIN expire?
Yes, if it is not used on a federal tax return for three consecutive years. ITINs issued before 2013 that were never renewed have also expired. You can renew with Form W7.
Jon Shrum
President of KMC Financial and leader of Team Shrum, powered by ARBOR Financial Group. Helping Orange County homebuyers and homeowners buy, refinance and plan their next move.
NMLS #335447
Based in Huntington Beach, serving California
Buying a home with an ITIN?
Know your options before you start shopping.
Jon Shrum and Team Shrum can review your tax returns, savings and credit, compare ITIN programs and show the payment and cash to close for each.
Sources and official resources
- IRS: Individual Taxpayer Identification Number
- IRS: About Form W7
- IRS: How to apply for an ITIN
- IRS Topic 857: Individual Taxpayer Identification Number
- HUD: FHA residency requirements (Mortgagee Letter, March 2025)
- Fannie Mae Selling Guide: General borrower eligibility
- Fannie Mae Selling Guide: Non U.S. citizen borrower eligibility
- eCFR: USDA applicant eligibility, 7 CFR 3555.151
- eCFR: Ability to repay, 12 CFR 1026.43
- CalHFA: Borrower eligibility
- CFPB: Loan Estimate explainer
Information checked September 27, 2026. Rates, loan limits, program rules and assistance funding change, so confirm current terms before you rely on them.
This article is for general education only and is not a loan offer, commitment to lend, or tax or legal advice. Rates, terms, fees and programs vary by lender and are subject to change without notice. All loans are subject to credit approval, underwriting guidelines and property eligibility. Examples are illustrations, not quotes. Team Shrum, KMC Financial and ARBOR Financial Group are not affiliated with any government agency. Jon Shrum, NMLS #335447. KMC Financial is powered by ARBOR Financial Group. ARBOR Financial Group is a DBA of The Turnkey Foundation Inc., NMLS #236669 (NMLS Consumer Access). Equal Housing Opportunity.
