Buying a Texas home with an ITIN

For a conventional loan, Fannie Mae requires each borrower to have a valid Social Security number or ITIN and to meet its legal residency and documentation rules (Selling Guide B2-2-01, Sept 3, 2025 version). Fannie Mae accepts lawful permanent and non-permanent residents. Someone with an ITIN but no lawful status falls outside that channel and needs a portfolio loan.

For FHA case numbers assigned on or after May 25, 2025 (HUD Mortgagee Letter 2025-09), only U.S. citizens and lawful permanent residents qualify. HUD reported on Oct 9, 2026 that non-permanent residents went from about 5.8% of FHA purchase loans to about 0.1% after the change.

Most ITIN loans ask for 10% to 20%. On a $400,000 home that is $40,000 to $80,000 before closing costs. Some lenders accept gift funds from family for the down payment and closing costs; others do not.

The Urban Institute puts ITIN rates 0.5 to 2 points above a traditional mortgage. Purely as an illustration: adding that range to Freddie Mac's Oct 22, 2026 average (7.32%) gives 7.82% to 9.32%. On a $340,000 30-year loan, principal and interest would run roughly $2,452 to $2,814 a month, before taxes, insurance and HOA dues.

ITIN loans are non-qualified mortgages (non-QM). Instead of one national rulebook, each lender reviews income and history its own way, so two lenders can give very different answers on the same file.

An ITIN expires on December 31 after the third consecutive tax year it is not used on a federal return. If yours expired, renew it before you apply. The IRS says to allow about 7 weeks, and 9 to 11 weeks during tax season (Jan 15 to Apr 30) or when applying from abroad.

Two years of federal returns and two years of work history are common. If you are self-employed, expect to show profit and loss statements as well.

The lender wants to see where the down payment comes from and how long it has been in your account. Large unexplained deposits tend to slow an approval.

Without traditional credit, some lenders accept rent and utility payment history. Ask which applies to you before you pay for anything.

The lender compares your monthly debt payments, including the new mortgage, with your gross income. NerdWallet cites limits such as 50%, but each ITIN lender sets its own.

Per the CFPB, the only fee a lender may charge before giving you a Loan Estimate is for your credit report, typically under $30. Anything else waits until you say you want to proceed.

The lender must provide it within three business days of receiving your application. It is a standard three-page form that lets you compare rate, fees and payment across lenders.

The Closing Disclosure must reach you at least three business days before closing. Compare it line by line with the Loan Estimate and ask about every difference.

In Texas a notary public cannot give legal advice or prepare documents, and advertising as a "notario publico" is a crime. If someone who is not a licensed lender or attorney offers to get you a mortgage, be careful. I cover this in the guide to notario and wire fraud.

When financing falls through, seller financing under an executory contract sometimes appears. Texas law requires the seller to record it within 30 days and to write it in the language it was negotiated in. If you are offered one, have an attorney review it before you sign.