Most ITIN mortgages in Texas ask for 10% to 20% down, not the 3% to 5% you see advertised for conventional loans. Some lenders go higher, up to 25% or 30%, when credit is thin or the file is complicated. On a $400,000 house, 10% down means $40,000 before closing costs. This guide shows what drives your number, what you will really bring to the closing table, and how to lower the amount you need.
TL;DR
- ITIN home loans are non-QM (non-Qualified Mortgage) products, so they do not follow the 3% FHA or conventional minimums. Expect roughly 10% to 20% down, sometimes more.
- ITINs cannot be used for FHA, VA or USDA loans, which require a Social Security number.
- Budget for closing costs of about 2% to 5% of the price on top of the down payment. On a $400,000 home at 10% down, that is $48,000 to $60,000 in total cash.
- Credit score, income documentation, property type and reserves all move the percentage a lender asks for.
- Self-employed ITIN holders can often document income with bank statements instead of tax returns, which can matter as much as the down payment itself.
Table of Contents
- Why ITIN borrowers put down more than other buyers
- What the market actually asks for
- A worked example: a $400,000 Texas home
- Where the down payment money can come from
- Don’t forget Texas property taxes
- Self-employed with an ITIN: income is the second hurdle
- Our perspective: plan the whole file, not only the percentage
- Ways to lower the cash you need
- Buying an investment property with an ITIN
- Ready to see where you stand
- FAQ
- Sources
Why ITIN borrowers put down more than other buyers
An ITIN is a nine-digit number the IRS issues to people who need a taxpayer number for federal tax purposes but are not eligible for a Social Security number. It is a tax tool only. The IRS says it does not provide immigration status or work authorization, and it is not accepted for government-backed programs that require an SSN.
That last point is the reason down payments look different. FHA, VA and USDA loans, with their low or zero down payment rules, are off the table. What remains is a specialized group of non-QM lenders who underwrite ITIN files by hand. Because those loans are held by the lender or sold to private investors rather than backed by a federal agency, the lender carries more risk and asks you to carry more of the price.
The CFPB explains that standard guidance runs from 3% to 20% depending on the loan. ITIN programs sit in the upper part of that range, and often start at 10%.
What the market actually asks for
If you search this topic, you will see numbers that do not agree. That is normal. There is no regulated minimum for ITIN loans, so each lender sets its own. Here is how the ranges generally break down.
| Down payment | What it usually means |
|---|---|
| 10% | The low end. Typically paired with a stronger credit score, steady documented income and a primary residence. |
| 15% | A common middle tier for average credit or a file with some complexity. |
| 20% | A comfortable level for most ITIN programs. Often unlocks better pricing and fewer conditions. |
| 25% to 30% | More likely with lower credit scores, investment properties, or limited documentation. |
Treat these as ranges, not promises. The CFPB-based guidance we rely on notes there is no single minimum for ITIN loans, and that a 10% down payment is a meaningful benchmark lenders use to judge risk. Putting more than the lender’s floor down often leads to a better interest rate than the absolute minimum would.
What moves your percentage
- Credit profile. ITIN borrowers often have thinner files. Lenders may accept alternative credit such as rent, utility or phone payment history, but a higher score generally means a lower required down payment.
- Income documentation. Full documentation (pay stubs, W-2s or tax returns) is the simplest. Alternative documentation, such as bank statements, can push pricing or down payment up slightly, though it opens the door for people whose tax returns understate what they earn.
- Occupancy. Buying a home to live in is treated more favorably than buying a rental.
- Property type. Single-family homes are usually easiest. Condos, multi-unit properties and rural acreage can require more down.
- Reserves. Cash left in the bank after closing counts. Several months of payments set aside can offset a thinner down payment.
- Loan size. Larger loans often need larger down payments.
A worked example: a $400,000 Texas home
A frequent question is how much to bring for a $400,000 house. The math, using the CFPB’s closing-cost range of 2% to 5% of the price:
| Down payment | Down payment amount | Loan amount | Closing costs (2% to 5%) | Total cash to close |
|---|---|---|---|---|
| 10% | $40,000 | $360,000 | $8,000 to $20,000 | $48,000 to $60,000 |
| 15% | $60,000 | $340,000 | $8,000 to $20,000 | $68,000 to $80,000 |
| 20% | $80,000 | $320,000 | $8,000 to $20,000 | $88,000 to $100,000 |
Closing costs include lender fees, title charges, appraisal and prepaid items. The CFPB lists what costs come with a mortgage, and you can negotiate some of them. Ask your lender for a Loan Estimate early so the real figures replace this range.
Is $50,000 enough?
It depends on the price. At 10% down plus costs, $50,000 covers a home of roughly $350,000 to $400,000 at the lower end of the closing-cost range, and less if costs run toward 5%. At $300,000, 10% is $30,000, and $50,000 leaves a cushion for closing costs and reserves. At $450,000 it would be tight. Run your own numbers with our mortgage payment calculator.
Where the down payment money can come from
ITIN lenders care about the source of your funds as much as the amount. Expect to document it.
- Your own savings. Checking, savings and investment statements, usually covering the last two to three months, with large deposits explained.
- Gift funds. Many programs allow gifts from family, with a signed gift letter and proof of transfer. Rules differ by lender.
- Sale of an asset. A car, another property or business equity, with paperwork showing the sale.
- Assistance programs. Check eligibility carefully. Many public programs require an SSN or lawful status, though some nonprofit and local options do not. A CFPB report on financial education programs for immigrant communities describes assistance tied to Texas colonias, for example, so ask local housing nonprofits what applies to you.
Cash kept under a mattress or moved in last week is hard to use. A seasoned account with a clear paper trail is far easier to approve. Lenders generally want to see money sitting in your account for a couple of months before you apply.
Don’t forget Texas property taxes
The down payment is a one-time figure. Your monthly budget is a different test. Texas has no state income tax, but property taxes are a major monthly cost, and the Texas Department of Savings and Mortgage Lending’s 2024 report is a useful starting point on how lending works in the state. Rates vary widely by county and school district, so a house in one suburb can cost much more monthly than the same-priced house a few miles away.
A larger down payment reduces your loan and your principal-and-interest payment. It does not reduce taxes or insurance. Before you pick a percentage, price out the full monthly payment, including taxes, homeowners insurance and any HOA dues.
Texas also treats unpaid property taxes seriously: tax liens attach automatically and rank ahead of most other liens, so lenders and title companies check the tax status of a property closely. If you buy a home with a delinquent tax history, expect the closing to wait until it is resolved.
Self-employed with an ITIN: income is the second hurdle
Many ITIN holders in Texas run their own business, drive for apps, do construction or cleaning work, or earn 1099 income. Their tax returns often show less income than they really take in, because deductions reduce taxable profit. For a mortgage, that can look like less buying power than you have.
This is where bank statement underwriting helps. Instead of tax returns, the lender reviews 12 to 24 months of personal or business bank deposits to estimate your qualifying income. Lenders usually also want proof that the business exists. Fannie Mae’s list of mortgage documents includes a business license for self-employed applicants, and it lists an ITIN as an accepted identity document alongside the Social Security card. For ITIN loans, plan to bring:
- Your ITIN letter (CP565) or a copy of your ITIN documentation, plus a valid photo ID.
- 12 or 24 months of bank statements, personal or business.
- Business registration, such as a license, assumed name certificate or articles of organization.
- Two to three months of statements showing down payment funds.
- A signed purchase contract.
- Alternative credit proof if your credit file is thin: rent, utilities, insurance.
Our bank statement programs are built around this approach. See our bank statement home loans page to start a free check, or read how it works for buyers in Houston and Plano.
Our perspective: plan the whole file, not only the percentage
We talk to many self-employed Texans, and the pattern repeats. People fix on one number, the down payment, and then get surprised by the rest of the file. A buyer with 15% saved but undocumented income and unexplained deposits can be in a worse position than a buyer with 10% and clean records.
Here is how we suggest you think about it:
- Start with income, then savings. Know how a lender would count your deposits before you decide how much to save.
- Aim for 10% as a floor, not a target. A 10% down payment is a reasonable benchmark for non-traditional loans, and our low down payment options start there. Extra cash at closing buys flexibility and sometimes better pricing.
- Keep your reserves. Emptying your account for a bigger down payment can leave you exposed in the first months of ownership, especially if your income varies.
- Season your money. Move savings into one account early and leave it there.
- Keep business and personal deposits tidy. Transfers between your own accounts are not income, and lenders will strip them out.
Our published starting rate on a 30-year bank statement (non-QM) loan is from 7.00% per year, shown on our rates page. Your actual rate depends on your credit, down payment and documentation, so treat that as a starting point and not a quote. We do not publish a price for ITIN loans, so the best way to learn your terms is to check.
- Saad
Ways to lower the cash you need
- Negotiate seller concessions. In some markets sellers contribute toward closing costs. Lenders cap how much, depending on down payment size.
- Shop the price, not just the rate. A $350,000 house at 10% down needs $35,000. Trimming $50,000 off your target price lowers the down payment by $5,000.
- Compare lender fees. Closing costs vary. Request Loan Estimates from more than one source on the same day.
- Use gift funds where allowed. Get the rules in writing before you rely on them.
- Build credit first if you are close. A few months of on-time payments or paying down a card can improve your file.
- Time your purchase. If you are a few months from a clean 12 months of deposits, waiting can strengthen the file.
Buying an investment property with an ITIN
Rental purchases often ask for more down, commonly 20% to 25% or above. Some investors qualify based on the property’s rent instead of personal income, which is what a DSCR (debt service coverage ratio) loan does. If that is your plan, our DSCR calculator shows whether the rent covers the payment.
Ready to see where you stand
If you are self-employed in Texas and want to know what you can afford, our free, no-obligation qualification check takes about 60 seconds. We use your bank deposits, not your tax returns, to show a realistic range. Start on our home page, or look at local pages for Austin and Midland.
FAQ
What is the minimum down payment for an ITIN loan in Texas?
There is no official minimum, because ITIN loans are non-QM products and each lender sets its own. Most start around 10%, and many ask for 15% to 25%, depending on credit and documentation. Ask for the specific program guidelines before you save toward a target.
Can I use an FHA loan with an ITIN?
No. FHA, VA and USDA loans require a Social Security number, and the IRS notes that an ITIN does not provide work authorization or immigration status. That is why ITIN borrowers use non-QM lenders, who usually require more down than FHA’s 3.5%.
Do I need a work permit or Social Security number to qualify?
Not necessarily with a non-QM ITIN program, but requirements vary by lender. You will need a valid ITIN, documented income, acceptable credit and the funds to close. A lender can tell you which identity documents it accepts.
Is $50,000 enough for a down payment on a house in Texas?
It can be. At 10% down, $50,000 supports a home priced around $350,000 once you leave room for closing costs of 2% to 5%. For a higher price, or if you want reserves left over, you would need more or a lower purchase price.
Can self-employed ITIN holders qualify without tax returns?
Some lenders accept 12 to 24 months of bank statements in place of tax returns. That can reflect your true income if deductions lower your taxable profit. You will still need proof of your business and your down payment funds.
Sources
- Determine your down payment, CFPB
- What costs come with taking out a mortgage, CFPB
- Individual taxpayer identification number (ITIN), IRS
- Instructions for Form W-7, IRS
- Documents you need to apply for a mortgage, Fannie Mae
- 2024 Report on Mortgage Lending in Texas, Texas Department of Savings and Mortgage Lending
- Financial education programs serving immigrant populations, CFPB
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- Bank Statement Loans in Tyler, TX | Self-Employed Mortgage
- Mortgage Payment Calculator (Texas)
- Bank Statement Loans in Dallas County, TX | Self-Employed
See what you qualify for in 60 seconds, free and no credit check. Use the eligibility check at the top of this page.