ITIN loan vs foreign national loan
An ITIN loan is a mortgage for a person who files US taxes with an Individual Taxpayer Identification Number instead of a Social Security number, usually on the home they live in. A foreign national loan is a business-purpose mortgage on a US rental property for a buyer who lives outside the United States, qualified on the property’s expected rent.
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Which one is yours?
Tell us where you live, how you file taxes and what the property is for.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Where you live, and what the property is for
An ITIN loan is for a person who files US taxes with an ITIN, issued by the IRS, instead of a Social Security number. It works like any other mortgage: your identity, credit, income, savings and the home are all verified, and the lender makes a good-faith decision that you can repay the loan. The home can be your main residence, and some programs also allow a second home or a rental.
A foreign national loan is for someone who lives and works outside the United States and wants to buy or refinance a rental property here. It is a business-purpose loan: nobody on the loan may live in the property. Most programs qualify it on the property’s expected rent rather than on the buyer’s income, and a US credit score is not required.
So the questions are simple: where do you live, how do you file US taxes, and will you live in the property?
At a glance
- ITIN loan: you file US taxes with an ITIN; usually the home you live in; your income and a credit score under your ITIN are verified
- Foreign national loan: you live outside the United States; a US rental property; qualified on the rent; no US credit score required
- Both: not sold to Fannie Mae or Freddie Mac, so each program sets its own rules; a larger down payment than on a standard loan
ITIN loan and foreign national loan compared
The questions that separate the two.
| Question | ITIN loan | Foreign national loan |
|---|---|---|
| Who it is for | A person who files US taxes with an ITIN instead of a Social Security number | A buyer who lives and works outside the United States |
| The property | Your main residence; some programs also allow a second home or a rental property | A rental property in the United States; nobody on the loan may live in it |
| How it is qualified | On your income: a written verification of employment and tax transcripts, tax returns, bank statements or 1099s, depending on the program | Most programs qualify the loan on the property’s expected rent rather than on your income |
| Credit | A credit score is required, reported under your own ITIN; some programs accept rent, utility and phone payment records alongside it | A US credit score is not required: a foreign credit report or bank reference letters can be used, and some programs need neither |
| Identification | A government photo ID and your ITIN card or IRS letter; a visa is not among the documents the programs ask for | A passport and, where it applies, a visa |
| The down payment | Larger than on a standard loan; family gifts can help within program limits | Larger than for a US buyer |
| Holding title | As the program allows; ask a loan officer | Can be held in a company, such as a US limited liability company, with a personal guarantee |
| What kind of loan | A consumer loan on a home you live in | A business-purpose investor loan, for investment property only |
Foreign national loans are business-purpose investor loans, for investment property only; nobody on the loan may live in the property. ITIN loans on a home you live in are consumer loans.
When an ITIN loan fits better
When you file US taxes with an ITIN and want a home to live in.
- You file US taxes with an ITIN. The loan is built for people with an ITIN instead of a Social Security number.
- You live in the home. Your main residence; some programs also allow a second home or a rental property.
- Wage earner or self-employed. Income can be documented in several ways, depending on the program.
- A shorter credit history. Some programs accept rent, utility and phone payment records alongside a credit score.
When a foreign national loan fits better
When you live abroad and want a rental property in the United States.
- You live outside the United States. Buy a US rental property for the first time, or add to a portfolio.
- No US credit history. A foreign credit report or bank reference letters can be used, and some programs need neither.
- The rent carries the loan. Most programs qualify on the property’s expected rent rather than on your income.
- Title in a company. You can hold the property in a company, such as a US limited liability company, with a personal guarantee.
How to choose between them
Say where you live
Living and working outside the United States points to a foreign national loan; filing US taxes with an ITIN points to an ITIN loan.
Say what the property is for
A home you will live in points to an ITIN loan; a rental points to either, depending on where you live.
Gather your documents
For an ITIN loan, your photo ID, your ITIN letter and your income documents; for a foreign national loan, your passport, bank statements converted to US dollars and translated, and an appraisal with a rent schedule.
Ask the right experts
A licensed immigration attorney for your status, a CPA for your taxes, and your own attorney for how you hold title.
Questions about ITIN and foreign national loans
Do I need a US credit score?
For an ITIN loan, yes: every program asks for a credit score and checks that the credit bureaus report under your own ITIN. For a foreign national loan, no: a foreign credit report or bank reference letters can be used, and some programs need neither.
Can I buy a home to live in with a foreign national loan?
No. A foreign national loan is a business-purpose loan on a rental property, and nobody on the loan may live in it. Some programs lend to a buyer who lives abroad on a vacation home here; that is a consumer loan with its own rules, so ask a loan officer about it separately.
Do I need a visa?
For an ITIN loan, a visa is not among the documents the programs ask for: a government photo ID and your ITIN card or IRS letter. For a foreign national loan, a passport and, where it applies, a visa.
How is an ITIN loan different from a standard mortgage?
These loans are not sold to Fannie Mae or Freddie Mac, so each program sets its own rules. The down payment is larger than on a standard loan. And your credit is pulled under your ITIN, with a check that the credit bureaus report under your own number.
Who should I ask about taxes, immigration or how to hold title?
A licensed immigration attorney for your status, a CPA for your taxes, and your own attorney for how you hold title. A lender coordinates the financing and does not give immigration, tax or legal advice.
Do you lend in my state?
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999. Foreign national loans are business-purpose loans, which have their own state list.
Not sure which loan fits?
Get a quote, apply online, or tell a licensed loan officer where you live and what the property is for.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice. Foreign national loans are business-purpose investor loans, for investment property only.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.