Mortgage without SS #

Member since 2020 · 27 posts · 2 votes

I have a very odd situation:

I basically bought a house for a friend of mine about a year ago and gave him a 5% interest only loan for the entire purchase/closing/renovation costs.

Both he and I would like him to get more permanent financing.

But, he does not have a social security number. He has an ITIN and pays taxes.

We've looked into this some, and I see that there are ITIN mortgages, but their terms are quite unattractive.

Is there another solution?

Thank you.

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Joseph Skoler:

I have a very odd situation:
I basically bought a house for a friend of mine about a year ago and gave him a 5% interest only loan for the entire purchase/closing/renovation costs.
Both he and I would like him to get more permanent financing.
But, he does not have a social security number. He has an ITIN and pays taxes.
We've looked into this some, and I see that there are ITIN mortgages, but their terms are quite unattractive.
Is there another solution?
Thank you.

There is no other solution than a ITIN loan if they do not have a social. What do you consider not attractive? They are not going to get anything better than 5% even if they had a social as rates are above 5%. You are somewhat stuck as your friend is interest only with a very low payment, has no obligation to refinance if the loan has not matured and one of those things that not sure how you exit this.
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Joseph Skoler
OP
Member since 2020 · 27 posts · 2 votes
2y

I am not stuck -- his loan terminates in a month. I could call it in but I won't, for the same reason I did this in the first place: To help him.

I am trying to help with a better solution.

Quick research shows 10%+ for ITIN loans.

I could always give him another 1 year loan at 7, 8 or 9% IO.

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Colin McMahon
Lender · Miami · Member since 2022 · 99 posts · 18 votes
2y
Hey! Is this a primary residence or investment property? While he won't qualify for rates as low as 5% because that's just not where rates are at the moment, he could qualify for rates closer to the 7-8s depending on the situation. I'd be happy to provide more insight - feel free to reach out!
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