All Forum Posts by: Vinnie Da silva

Hello Everyone,

Here is a type of creative Financing for those who do not have Social Security. 

ITIN loan Program is a type of loan program for a segments of the population where it might be difficult to pursue conventional loan options. An ITIN is an Individual Tax Identification Number (ITIN) issued by the IRS and can be used as a form of ID for individuals.

ITIN loans are a unique kind of loan for individuals that may not have the traditional documentation needed, to obtain mortgage loan. ITIN loans can be a great option for individuals who do not have social security.

ITIN are issued to anyone who files a U.S. tax return and has payment responsibilities, regardless of immigration status. The difference in the case of an ITIN loan, the number acts as a form of identification that can be used if a Social Security Number is not an option. And the process is very similar to the conventional loan. 

Feel free to add any information or tips you might have.

Requirement for this type of program.

-Minimum of 20% Down Payment

-Primary Residency Only

-At least 2 years of taxable income. ( This is how we calculate self-employed income, we will add the last 2 years of income and divide by 24. For Ex: you made 150k in both years 2020/2021 after deductibles your net was 60k-2020 and 55k-2021. So that would be 60k + 55k = 115k which will give you a total monthly income of $4,791.66 - then you will have to subtract your other debts, car payments, credit card, other loans etc.) 

-Profit n Loss - Year to date Profit n' Loss signed by a CPA. ( needs to match bank statements ) 

-CPA letter confirming that borrower is self-employed and the business is profitable and legit . Needs to be signed a CPA

-Credit score: ITIN loans may have more flexible credit score requirements compared to other types of mortgage loans. ( The higher the score the better 700+. Anything less interest rates will be a lot higher ) 

-Government issued ID > Passport , Driver license, Matricula Consular. 

-Banks Statements or seasoned assets to document income.

Considering that 92% of the United States land mass is USDA-eligible. More people should be taking advantage of the USDA program.

USDA > Is a Rural development loan program that offers a 0% down payment and low rates. It is one of the most cost-effective home-buying programs in the marketplace today. The qualification process is very similar to FHA and is easier than many other loan types since the program doesn't require a down payment or a high credit score. The borrower will need a credit score of at least 640. In some cases, the credit requirement could be as low as 581. Also, the borrower can roll the upfront fee into the loan or pay it out-of-pocket. Which can help low-income families get into a home.

Keep in mind that USDA home loans are designed for potential home buyers with low to moderate income. Therefore, the household income can NOT
surpass 115% of the area median income ( by county ). The USDA takes into consideration all the income of the household. Another great thing about this program is that allows borrowers to open a loan for the full amount of the appraised value, even if it’s more than the purchase price. Borrowers can use the excess funds for closing costs. For example, a home’s price is $100,000 but it appraises for $110,000. The borrower could open a loan for $110,000 and use the extra funds to finance closing costs. 

USDA Construction Loan > it is also possible to finance new construction with a USDA Construction Loan Program. Which combines the construction loan and a traditional 30-year fixed USDA loan into a single-close loan. This is one loan for the land, construction, and finished home. Different than some construction loans where you have 2 closings, one prior to construction and one after the property is completed. The best part is, no payments out of pocket during construction. 

I believe this is a great tool that realtors can take advantage of to grow and expand their business.  And for those who want to start investing in real estate, and don't have a lot of money saved.

> Here is the link where you can check USDA Eligibility ( https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp )

Please feel free to add any extra information or tips you might have.

it all depends on the property's condition. Usually a contractor is sufficient. however, if you suspect that there are major issues, then you will also need a home inspector to look at foundation and structurer. I suggest you to find a contractor that you or someone you know have done business with. Also, try to get 3 quotes from 3 different contractors so that way you will have a price reference.

 @Jonathan Pflueger

Absolutely, I can refer you to one of my team member licensed in CA. You can send me a DM and I can get you in contact with them.

Absolutely, I can refer you to one of my team member licensed in CA. You can send me a DM and I can get you in contact with them.

@Damario Hoskins

Weissman Attorney is by far the best Closing attorney I've used in GA. They are extremity helpful, specially when something goes as not expected. They will assist you even on a Fridays at 5pm. I try to used them when possible. You can also read their reviews on google and see if they are a fit for you.

So on DSCR loans the Underwriter will use the monthly income generated by the property as collateral, so it wont require personal guarantee. As long as the income generated by the property covers PITI is enough to qualify and of course the property needs to pass appraisal inspection. Other than that the terms are similar to a conventional loan. You will need 20% DP + 2.5 - 3% closing cost. Also, the rates will be higher since its an investment property, but you can always refinance later.

• Hey Rosston,
• The problem I see on reverse mortgage is that the interest rates are higher than most other types of mortgages. The equity he holds in his home will go down as he accumulate interest on his loan. With todays rate, the equity will go down quick. Another option for that is to do a HELOC and use the money to buy 2-4 unit property. He can move to one of the unit and rent the others. He would also rent his primary home, and that would take care of the mortgage. That way he would have multiple source of income. Whenever he dies, the executor of his state wont need to sell the primary house to pay off the reverse mortgage lender.

@Allison Jones, You can possibly buy a house in Marietta using DSCR. Its a Non-QM Debt Service Coverage Ratio loan that allows you to qualify for a mortgage based on cash flow generated from an investment property – through a rental, as opposed to your personal income. A calculation generates a debt-to-income ratio and the higher the ratio, the better. The rstion can go as low as .75. I can send you a pm with more information.