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South Pasadena's tight housing stock makes ITIN loans critical for self-employed immigrants building equity here. Traditional lenders won't touch you without an SSN, but non-QM programs treat ITIN filers like any other borrower with income.
This city's preservation mindset and solid school ratings attract buyers who've built California businesses without traditional employment. If you have tax returns and decent credit, your immigration status doesn't block homeownership.
Most South Pasadena ITIN borrowers we close are established business owners or professionals with 5+ years stateside. They're competing in the same bidding wars as W-2 buyers, just using different documentation.
You need a valid ITIN, 2 years of filed tax returns, and minimum 620 credit score. Most lenders want 15-20% down, though we've closed deals at 10% for borrowers with strong financials.
Income verification runs through your 1040 returns just like self-employed citizens. Lenders calculate qualifying income the same way, averaging two years and deducting business expenses.
Debt-to-income limits hit around 43-50% depending on compensating factors. Your employment letter or business license proves income stability even without paystubs.
About a dozen wholesale lenders in our network write ITIN loans, but their overlays differ wildly. One requires 680 credit, another accepts 620. One caps at 80% LTV, another goes to 90%.
Rate premiums run 0.50-1.25% above conventional programs. You're paying for the non-QM underwriting, not your immigration status. Rates vary by borrower profile and market conditions.
Portfolio lenders offer the most flexibility on income documentation and reserves. They care more about your business track record than checking boxes on an automated underwriting system.
ITIN borrowers get declined more often for tax deduction issues than credit problems. That home office write-off tanks your qualifying income even though it makes financial sense.
We structure around this by finding lenders who allow add-backs for depreciation and one-time expenses. A borrower who looks like $60K income to one underwriter shows $85K to another.
South Pasadena's competitive market means you can't wait 30 days for loan approval. Get pre-underwritten with tax returns reviewed before you write offers. Sellers care about certainty, not citizenship.
Foreign National Loans skip the tax return requirement but demand 30-40% down and higher rates. Choose ITIN if you've filed returns and want better pricing.
Bank Statement Loans work if your business runs cash-heavy and tax returns understate income. They calculate income from deposits, not 1040s, but typically cost more than ITIN programs.
Asset Depletion Loans let you qualify using savings instead of income. Makes sense for retirees with ITINs but not working immigrants buying in South Pasadena's price range.
South Pasadena's small-lot Craftsman homes and bungalows appraise consistently, which helps ITIN approvals. Lenders worry less about collateral when comparable sales run deep.
The city's walkability and Mission Street retail mean ITIN borrowers can run service businesses locally while building equity. We see landscapers, contractors, and restaurateurs buying here.
Proximity to downtown LA and Pasadena job centers matters for income stability documentation. Underwriters like seeing established business locations or long-term client relationships in the area.
No. Every ITIN lender we work with requires 2 years of filed returns to verify income. One year of self-employment won't qualify you for purchase financing.
Yes, typically 0.50-1.25% higher. You're paying for non-QM underwriting flexibility, not your tax ID type. Strong credit and larger down payments reduce the premium.
Most lenders require 15-20% down. We've closed deals at 10% for borrowers with 700+ credit and strong reserves, but expect to put down at least 15%.
No. Lenders verify income and creditworthiness, not visa status. Your ITIN and tax filing history prove you're a taxpayer, which is what matters for loan approval.
Plan on 21-30 days from application to closing. Tax return review adds time versus W-2 loans, but pre-underwriting your returns speeds up the process significantly.
ITIN Loans in South Pasadena