WHEN TO BUY A HOME WITH AN ITIN: TIMING YOUR U.S. PROPERTY PURCHASE RIGHT
Thinking of buying a home in the U.S. with an ITIN but unsure when to move forward?
An Individual Taxpayer Identification Number (ITIN) is essential for people who are non-residents and individuals who aren’t eligible for a Social Security Number but need to fulfil U.S. tax obligations. Knowing when to apply for an ITIN is key to avoiding delays, penalties, and missed tax benefits. Whether you’re a nonresident earning U.S. income, relocating for work, or planning to invest in property — timing is key when it comes to real estate. And having an ITIN opens the door.
Here’s how to know when the time is right to start your home-buying journey:
You Already Have an ITIN (or Are Ready to Apply)
An Individual Taxpayer Identification Number (ITIN) is essential if you don’t have a Social Security Number.
If you already have an ITIN — you’re ahead.
If not — apply now with Form W-7 and valid ID. We recommend doing this before starting the mortgage process.
You’ve Filed U.S. Taxes Consistently either 1040/1040NR
Lenders prefer 2 years of U.S. tax returns (Form 1040/1040NR) with your ITIN. For example, if you’re married to a U.S. citizen resident, you can file a 1040 U.S. federal tax return with the Married Filing Jointly status. For more information on this, please refer to our earlier blog ITIN for the spouse of a US Citizen. Alternatively, if you have had any USA-based income and filed your 1040NR tax return, you are eligible to apply foran ITIN. For more information on who can file a 1040NR tax return, please refer to our earlier blog ITIN for 1040NR filing. If you have consistent income and can show returns, you’re in a stronger position for mortgage approval.
The Market Works in Your Favor demand for US market housing is based on:
Interest rates, home prices, and inventory vary. If:
- Interest rates are relatively low
- You’re financially stable
- You’ve identified a good area with a good rental yield and easy to sell in the future.
…it’s a good time to start looking.
You Have 15-20% Saved for a Down Payment
Most ITIN-based mortgages require a higher down payment than standard loans. If you’ve saved at least 15% to 20%, it might be the right time to act, especially if you’re renting and want to build equity.
🏦 You’ve Found the Right Lender with USA-based mortgage team.
Not all lenders offer ITIN mortgages. Look for:
- Experience with ITIN applicants
- Willingness to accept alternative credit history
- Clear terms and closing timeline
Once you’ve found the right one, the buying window opens. For more information on third-party withholding on mortgage interest and ITIN requirement please refer to our earlier blogs
You’re Planning Long-Term property investment in the United States
Buying a home makes sense if you plan to:
- Stay in the U.S. for several years
- Use the property as a primary residence
- Invest in rental or future family use
If you’re still unsure of your plans, renting might be the safer option for now.
Sale of the USA Home – FIRPTA Declaration.
Its important to know that the ITIN is mandatory when you are selling your USA based property as a foreign investor, If you do not have a valid ITIN you are subject to 10% or 15% tax on the sale proceeds which can be avoided with valid ITIN, For more information on the FIRPTA tax, Please refer to our earlier blog on sale of USA home FIRPTA tax
Conclusion:
The right time to buy a home with an ITIN is when your documentation is ready, your finances are in order, and you’ve found a trusted lender. Market conditions and your long-term goals matter, but with the right support, buying as an ITIN holder is absolutely doable.
Our team specializes in ITIN applications, extensions, and tax compliance. Contact us for expert assistance to ensure your ITIN application is handled efficiently and accurately.
Please visit our website for the FAQ related to ITIN and US Tax Assistance.
