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Car Loans with ITIN Numbers: What to Know

It is possible for illegal immigrants to get a car loan through an IRS technicality. The IRS requires that everyone pay taxes, even if they are illegal immigrants. The IRS is required by law to provide a way for illegal immigrants to pay those taxes without a social security number. The solution is called an International Taxpayer ID Number or ITIN. An ITIN can be used in place of a social security number to open bank accounts and obtain loans. It uses the same format as an SSN:  XX-XXX-XXXX, and always begins with the number 9.

Should You Have an ITIN?

ITINs are mainly issued to resident and nonresident aliens and foreign nationals who do not qualify for a Social Security Number (SSN), but are required to file a federal income tax return. It is best to speak with a licensed tax professional to find out whether you should apply for an ITIN or not. You can also contact the IRS toll-free at 1-800-829-1040. Form W-7 must be completed to apply for an ITIN, and a response from the IRS should come within six weeks of submission. ITINs issued after 1/1/2013 expire after five years. You will need two types of identification to apply, which may include:  passport, national ID card, US or foreign driver’s license, US or foreign military ID card, visa, or USCIS photo ID. Certain credit unions, particularly those serving the Hispanic population, can help you with this process. Examples include:

Where to Get a Home or Auto Loan with ITIN Number

Prior to the economic meltdown in 2008, many big banks had ITIN programs intended to tap into the immigrant market, particularly for mortgages. Many of these programs have been discontinued, given the stricter lending standards particularly in home loans, but there are still lenders willing to finance cars for immigrants with ITIN numbers. You have two main options for finding such a lender.

  • Call various banks, credit unions, and dealers in your area, inquiring as to whether they have an ITIN program. Few lending institutions seem to advertise or mention such programs on their websites, so calling is typically required.
  • Apply online through us. When you submit your application through us, our advanced application placement platform works to match you with a lender willing to approve your auto loan. This happens automatically, behind the scenes, so you don’t have to spend hours or days calling various lenders, finding out whether they will work with you. Our platform also takes into account other factors such as income and location to make sure you won’t face any such obstacles.

What to Expect from an ITIN Car Loan

Although such loans proved themselves lower risk than subprime loans during the recession, they are still unconventional, and therefore come with fairly significant interest rates and limited terms. You will most likely need an income of $1500 per month before taxes, and a down payment of 10% or $1000. Your vehicle will most likely have to be purchased from a specific dealership or network of dealerships, rather than a private seller.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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