Obtaining an auto loan with an ITIN can be difficult, but it is still possible. The basic loan requirements that you will face are going to be the same as if you had a Social Security number, but there may be a few other items required by potential lenders.
General Auto Loan Guidelines
In order to qualify for an auto loan through a large traditional lender you and the vehicle will need to meet the following requirements:
- The auto must have a loan-to-value (LTV) ratio between 85 and 115 percent.
- The vehicle must be less than 8 years old and have less than 100,000 miles.
- Normally, the loan terms will be between 36 and 72 months.
- You will need a down payment equal to 10 percent of the total purchase price or $1,000 as a minimum.
- You will need to have at least two years on your job or within the same industry and should have lived at the same residence for two years.
- Your monthly gross income (before taxes) should be at least $1,400 and needs to be verifiable.
- You must have a debt-to-income (DTI) ratio of less than 36 percent with the new payment included. DTI is the total amount of your recurring monthly payments divided by your monthly gross income.
With an ITIN some lenders may waive the credit score requirements because you may not have established a credit profile in this country yet. Secondly, the time on your job and time at residence requirements may be changed to accommodate the amount of time you have been in the U.S. Additionally, you may be asked to prove that you will be in the U.S. for the duration of the loan.
Where to Apply
If you have difficulty finding a large traditional bank to approve the auto loan that you need, you may still find the loan you want by shopping online. There are many specialty lenders who operate online only in order to keep their costs low. This low cost strategy allows them to offer non-traditional loans, including auto loans with an ITIN. You will want to shop your loan with at least three lenders to insure that you are being offered the best terms and lowest interest rate possible.
How We Can Help
Here at Motive Auto Finance, we work with a vast range of dealers and lenders throughout the country, many of whom do fund loans for people with ITINs instead of SSNs. Instead of searching for hours online or by phone for a lending institution nearby that will work with you, we allow you to submit a single online application, which we then place with a company that wants your business. This helps you to find an “ITIN auto loan” in as little as 24 hours, instead of spending days searching for the right dealer, credit union, or bank.