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Amres ITIN Secure Guidelines
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ITIN Secure Guidelines

1. Introduction
The following ITIN Matrix and Guidelines are overlays to Agency Guidelines. Guidance not provided in the below guidelines will follow traditional conforming guidelines standards.


1. Credit/LTV Matrix
0
Credit Score / LTV
<= 60%
65%
70%
75%
80%
85%
89%
Credit Score / LTV
<= 60%
65%
70%
75%
80%
85%
89%
1
>= 720
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
2
700-719
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
3
680-699
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
4
660-679
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
5
640-659
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
6
620-639
N/A
N/A
N/A
N/A
N/A
N/A
N/A
7
No Score
7.99%
7.99%
7.99%
7.99%
7.99%
8.49%
N/A
8
(*) No Score/No Rent History
N/A
N/A
N/A
N/A
N/A
N/A
N/A
There are no rows in this table

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1
Cash-Out Adjustment
N/A
2
Cash-Out Max LTV
N/A
There are no rows in this table
*Condominiums allowed up to 85% LTV *LTV > 85% requires 12-monthPITI reserves, otherwise 6 months required *Loans with a Non-Occupying Co-Borrower require proof of living with borrower for > 12 months *Jumbo Loans not eligible standard conforming loan limits *2-unit homes allowed up to 80% LTV
2. Borrower Identity
Borrowers must have a tax-paying identity
A valid ITIN card/IRS ITIN letter or a valid SSN and,
Tax-Paying Identity – is the identity used to evaluate the mortgage loan. This is the identity that is used for filing federal income tax returns. This may be an Individual Tax Identification Number (ITIN) or Social Security Number (SSN). If this is an SSN, it may also be a Wage-Earning Identity (see page 5, Primary Income).
Wage-Earning Identity – is the identity(ies) under which a borrower has earned W-2 income. It is possible that a borrower will have more than one WageEarning Identity.
Documentation: Nonpermanent resident aliens must have:
A valid ITIN card/IRS ITIN letter or a valid SSN and,
A government-issued photo ID (passport, visa, Matrícula card, etc.)
The identification number provided must be their Tax-Paying Identity. These borrowers may have other identities, such as a Wage-Earning Identity. Proof of legal residency is not required.

3. Compliance/Patriot Act
Investor has developed a comprehensive BSA/AML program that includes a well-documented, written OFAC risk assessment and policy. Investor has working knowledge of OFAC regulations / sanctions and understands when transactions should be blocked or rejected.

4. Employment/Residency Requirement
During the most recent 2 years, borrowers must have continuous US residency and employment history, of which the most recent 12 months were in same the location as property prior to loan application. Borrower must reside and work in the same location within a 50-mile radius.

5. Transaction Types
Owner-occupied primary residence
Purchase
Rate-and-Term Refinance
Ineligible: Investment Properties

6. Maximum LTV & Loan Amount
Single Family Residences (SFR): 85%
Low Rise Condominiums: 85% (Warrantable)
High Rise Condominiums: 85% (Warrantable)
Duplexes / 2-unit properties: 80%

7. Property Types
1 to 2 Units
Fee Simple, single-family attached and detached condos, PUD’s

8. Loan Types
8.a Fixed Rate Mortgages
Maximum Term - 30 Years Temporarily Suspended (1/25/23)

Adjustable-Rate Mortgages
5 Yr ARM
Fully amortizing over a period up to 30 years
Initial fixed-rate period up to 60 months
Index: Wall Street Journal Prime Rate
Lifetime cap of 6% over start rate
Floor = start rate
Annual reset
Maximum initial adjustment 200 bps / Maximum annual adjustment 200 bps
Ineligible: Interest-only, balloons, graduated-payment mortgages

9. Gifts/Reserves
There is no seasoning requirement; funds must be in a bank account prior to final approval or closing.
All funds must be verified. Any significant increase in average balance or large deposits require an explanation of source from applicant.
Reserves: 6 months’ PITI
Gifts: Permitted (See Ineligible below for limitations)
Ineligible: Equity from unsecured loans, cash advance proceeds

10. Seller Contributions
Seller contributions may cover normal and customary closing costs (Maximum of 6% or Purchase Price)

11. Escrows/Impounds
All loans

12. Underwriting Criteria/Credit
12.A. Traditional Credit
A retail credit report will be obtained for each applicant. The credit report must reflect at least 3 open and active credit references for the most recent 12 months. If this is not possible, then a minimum of 2 credit references should be obtained on the applicant (nontraditional credit). A verification of rental or mortgage payments must provided.
12.B. Non‐Traditional Credit
A loan may be fully underwritten using alternative credit if there is insufficient traditional credit to evaluate. If alternative credit sources are used, the minimum requirement is a 12-month history, generally verified with lender-written verification, cancelled checks or bills marked paid. Lender written verification for any account not listed on the credit report. The written verification should include:
Creditor’s name and address
Date account opened
Amount of high credit
Current account status
Required payment
Unpaid balance / Payment history
Contact information of the individual providing the reference
NOTE: If any late payments are indicated, the payment history must be stated in the “number of past dues” format — 30-, 60- and 90-day late payments. Proof of monthly or quarterly payment is required.

Allowable alternative credit references include:
Housing payments
Installment loan payments (such as an auto loan)
Utility payments
Telephone and cable service payments
Insurance payments (excluding payroll deductions)
Lease payments related to durable goods (including leases)
Local store payments (department, furniture, appliance)
School tuition payments or ongoing child care payments
Payments on a loan obtained from an individual (repayment terms must be documented in a written agreement)

12.C. Credit Scores
Since many ITIN borrowers have limited credit that reports on their credit report, underwriting is not credit score based. That said, our minimum middle credit score for all ITIN loans is 640.

12.D. Payment History
Acceptable Number of Late Payments:
Payment History
0
Obligation
Last 12 Months
Last 24 Months
Obligation
Last 12 Months
Last 24 Months
1
Housing (Rent)
0 x30
1 x 30, 0 x 60 or beyond
2
Installment, Nontraditional or Revolving
0 x30
2 x 30 or 1 x 60 and beyond
3
Collections (excluding medical) ** Charge offs, or Repossessions
None
None
There are no rows in this table
Note: If any late payments are indicated, the payment history must be stated in the “number of past dues” format 30, 60, and 90-day late payments.

12.E. Adverse Credit History
If any adverse credit exists, it must meet the following requirements:
Adverse Credit History
0
Adverse Credit Issue
Requirement
Adverse Credit Issue
Requirement
1
Judgements and Tax Liens
All outstanding balances must be paid in full prior to closing.
2
Medical Collections
Up to $1,500 aggregate may remain open after closing. Amounts greater than $1,500 must be paid in full prior to closing
3
Bankruptcies
Ineligible
4
Foreclosures, Deed‐inlieu, Short Sales
Ineligible
5
Consumer Credit Counseling / Debt Management Plan
Must be discharged/complete 3 years prior to loan application.
There are no rows in this table

*All income tax obligations must be paid prior to closing.
*Collections may not be the result of a traditional or nontraditional tradeline that exceeds the number of lates allowed in the most recent 24 months. Documentation must be provided.

13. Co-Applicant Credit
Co-applicants must meet the same minimum credit requirements as primary applicants unless
The co-applicant is a spouse, in which case no additional credit is required. The spouse is not required to be a guarantor on the note but, pursuant to state community property laws pertaining to primary and secondary residences, may be required to sign the Deed of Trust (and other pertinent documents).
The co-applicant(s) has/have been living with the primary applicant for 12 months, in which case 2 references are required and the housing reference is waived.

14. Qualifying Ratio
Overall expense ratio, which is the total monthly cost of owning the property plus any monthly installment debts which will continue longer than 10 months, revolving debts, alimony, maintenance and child support, all divided by stable gross monthly income. The maximum allowed overall expense ratio is 41%.

15. Primary Income (Documented)
All income reported by the applicant will be considered as long as the income is substantiated and may reasonably be expected to continue. In order to evaluate the income the Loan officer will need to obtain the following:

16. Self Employed
16.A. If Borrower is Self Employed (or one of the Co‐Borrower is Self Employed), Income can be Calculated using Bank Statements:
12 consecutive month's personal bank statements to verify ability to repay
Business Accounts can only be used if the business account reflects that personal expenses are being paid from this account (ie Rent, Car Payments, Utility Bills, Personal Credit Cards, etc.)
Deposits must be consistent and typical
Large Deposits must be sourced to determine if funds came from a business source
Non-borrowing spouse on the bank statements – The portion of the income from a nonborrowing spouse must be excluded
Determined total monthly average deposited and divided by 12 to determine the qualifying income
Deposits that CANNOT BE USED in the average of the total S/E qualifying income are as follows:
Credit back from credit/Debit returns
Unsourced transfers from another account (if borrower transfers money from his business account to pay themselves the transfers must be consistent)
Payroll Advance
Undocumented large deposits that cannot be determined as an income source
If the applicant is self employed, and has an operating company current financials on the applicant’s company must be obtained. The applicant may be required to provide a letter from a CPA to substantiate all income documentation provided.

16.B. If borrower is employed and paid by a company in the US in US dollars:
Most recent 2 paycheck stubs and prior year’s W2.
2 years’ tax returns US) as well as verification of YTD income.
A minimum of 3 months’ bank statements that reflect deposits corresponding to the income as outlined above.
All applicants must sign IRS form 4506C covering the two years preceding the loan application.
All US income tax obligations must be paid prior to loan closing.

16.C. Employment
Employment will be verified for each applicant. Significant factors to be considered are length of employment with a particular employer and stability of income within a particular line of work.

17.D. Rental Income
For purchase loans - deduct 75% of gross rent from PITI (current lease agreement or operating income statement must be provided).
For refinances - deduct net rental income before depreciation shown on tax return (current lease agreement or operating income statement must be provided).

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