ITIN Loan vs. Foreign National Mortgage: What’s the Difference?

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. We place both ITIN loans and foreign national mortgages — understanding the difference upfront saves a lot of wasted time. Call (800) 239-1103.

If you’re buying a home in California without U.S. citizenship, you’ve likely come across two options: ITIN loans and foreign national mortgages. They sound similar, but they serve different borrowers with different documentation, rates, and loan terms. Here’s exactly how they differ.

The Core Difference: Residency Status

• ITIN loans are for non-citizen borrowers who live and work in the U.S. — typically undocumented immigrants or visa holders who don’t have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN)
• Foreign national mortgages are for borrowers who live outside the U.S. and are purchasing American real estate as an investment or vacation property

Side-by-Side Comparison

Feature	ITIN Loan	Foreign National Mortgage
Borrower residency	Lives in the U.S.	Lives outside the U.S.
ID used	ITIN (W-7 issued)	Passport + visa (if applicable)
Credit history	U.S. credit often buildable	Foreign credit or no credit accepted
Down payment	10–20%	25–40%
Property use	Primary residence	Investment or vacation home
Income documentation	U.S. tax returns or bank statements	Foreign bank statements, employer letters
Interest rates	Slightly above conventional	Higher (1–2% above conventional)
Loan limits	Up to conforming/jumbo	Typically capped at $2–3M

ITIN Loans: Who They’re For

• Undocumented immigrants with established U.S. residency
• DACA recipients (Dreamers)
• Visa holders whose employer hasn’t sponsored Social Security eligibility
• Long-term residents who file taxes with an ITIN

ITIN lenders look at U.S.-based income, U.S. bank account history, and 2 years of ITIN tax returns. Because the borrower lives here and earns income here, the risk profile is much lower than a foreign national loan — which is why down payments and rates are more favorable.

Foreign National Mortgages: Who They’re For

• Chinese nationals buying Bay Area investment condos
• Canadian buyers purchasing Tahoe vacation homes
• European investors acquiring LA or SF rental properties
• International executives on assignment who want to own rather than rent

Which Loan Do You Need?

• Yes, I live here → ITIN loan (if you don’t have an SSN) or conventional/FHA (if you have a qualifying visa)
• No, I live abroad → Foreign national mortgage

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