What we verified in “Refinancing from an ITIN loan to conventional or FHA”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to Fannie Mae's Selling Guide, each borrower must have a valid Social Security number or an ITIN, in addition to meeting legal residency and documentation requirements; if there are Social Security number issues the lender cannot resolve, it must validate the number directly with the Social Security Administration, and if it cannot be validated, the loan is not eligible for sale to Fannie Mae.

   Sources 1 · B2-2-01, General Borrower Eligibility Requirements (09/03/2025), 'Tax Identification Numbers': 'requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements'; 'the lender must validate the Social Security number directly with the Social Security Administration (SSA)'; 'If the Social Security number cannot be validated with the SSA, the loan is not eligible for sale to Fannie Mae' · Checked October 17, 2026

2. According to Fannie Mae's Selling Guide, Fannie Mae buys mortgages made to non-U.S. citizens who are lawful permanent or non-permanent residents on the same terms available to U.S. citizens; it does not specify the exact documents: the lender decides based on the circumstances of the individual case, using the documentation it deems appropriate, and warrants that the borrower is legally present in the country.

   Sources 2 · B2-2-02, Non–U.S. Citizen Borrower Eligibility Requirements (07/28/2015): 'mortgages made to non–U.S. citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens'; 'Fannie Mae does not specify the precise documentation the lender must obtain'; 'based on the circumstances of the individual case'; 'the lender represents and warrants that the non–U.S. citizen borrower is legally present in this country' · Checked October 17, 2026

3. According to Fannie Mae's Selling Guide, a limited cash-out refinance obtains a new first mortgage on the same property to pay off the existing first mortgage; at least one borrower on the new loan must be on title at the time of application; paying off the existing loan may include amounts such as prepayment penalties; closing costs, points and prepaids can be financed; cash back cannot exceed the greater of 1% of the new loan or $2,000; and above 95% loan-to-value, the loan being paid off must be a Fannie Mae loan, except with HomeReady.

   Sources 3 · B2-1.3-02, Limited Cash-Out Refinance Transactions (10/08/2025): 'to obtain a new first mortgage secured by the same property to'; 'pay off an existing first mortgage'; 'At least one borrower on the new loan must be an owner (on title) of the subject property at the time of the initial application'; 'such as prepayment penalties'; 'financing the payment of closing costs, points, and prepaid items'; 'does not exceed the greater of 1% of the new refinance loan amount or $2,000'; 'The lender must inform DU that the existing loan is owned (or securitized) by Fannie Mae'; 'The above requirements do not apply to HomeReady or high LTV refinance loans' · Checked October 17, 2026

4. According to Fannie Mae's Selling Guide, on a cash-out refinance the existing first mortgage being paid off must be at least 12 months old, measured from the existing note date to the new note date; and at least one borrower must have been on title for at least six months before disbursement, with exceptions such as an inheritance.

   Sources 4 · B2-1.3-03, Cash-Out Refinance Transactions (12/10/2025): 'it must be at least 12 months old at the time of refinance, as measured by the note date of the existing loan to the note date of the new loan'; 'At least one borrower must have been on title for at least for six months prior to the disbursement date of the new loan'; 'the borrower acquired the property through an inheritance' · Checked October 17, 2026

5. According to Fannie Mae's Selling Guide, HomeReady is a conventional mortgage for borrowers who meet income criteria; it covers purchases and limited cash-out refinances of one- to four-unit principal residences; and total annual qualifying income may not exceed 80% of the area median income for the property's location.

   Sources 5 · B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility (06/04/2025): 'a conventional community lending mortgage that offers underwriting flexibilities to qualified borrowers who meet specific income criteria'; 'A HomeReady mortgage is a first mortgage, purchase money, or limited cash-out refinance transaction for one- to four-unit properties used as the borrower’s principal residence'; 'the total annual qualifying income may not exceed 80% of the AMI for the property’s location' · Checked October 17, 2026

6. According to HUD Mortgagee Letter 2025-09, which must be applied to FHA case numbers assigned on or after May 25, 2025 and applies to all FHA Title II single-family forward programs and to reverse mortgages (HECM), HUD eliminated eligibility for non-permanent residents; a borrower with lawful permanent resident status may be eligible on the same requirements, terms and conditions as a citizen, with evidence of that residence, which USCIS provides; citizens of Micronesia, the Marshall Islands and Palau may also be eligible; and a Social Security card is not enough to prove immigration or work status.

   Sources 6 · Mortgagee Letter 2025-09, Revisions to Residency Requirements (March 26, 2025): 'must be implemented for FHA case numbers assigned on or after May 25, 2025'; 'The provisions of this ML apply to all FHA Title II Single Family forward'; 'eliminating eligibility for non-permanent resident Borrowers'; 'A Borrower with lawful permanent resident status may be eligible'; 'the same requirements, terms, and conditions as those for U.S. citizens'; 'The mortgage file must include evidence of lawful permanent residence'; 'Micronesia, the Republic of the Marshall Islands, or the Republic of Palau'; 'A Social Security card is not sufficient to prove immigration' · Checked October 17, 2026

7. According to HUD Handbook 4000.1, each FHA borrower must give the lender evidence of a valid Social Security number (SSN), with exceptions such as people employed by the World Bank or a foreign embassy; and U.S. citizenship is not required.

   Sources 7 · Handbook 4000.1 (issued August 12, 2026), II.A.1.b.ii(A)(1) and (8), pp. 151–153: 'Each Borrower must provide evidence of their valid SSN to the Mortgagee.'; 'Individuals employed by the World Bank, a foreign embassy or equivalent'; 'U.S. citizenship is not required for Mortgage eligibility.' · Checked October 17, 2026

8. According to HUD Handbook 4000.1, on a cash-out refinance the proceeds are not limited to specific purposes; on a no cash-out refinance, the proceeds may only pay the existing debt and transaction costs; and a 'rate and term' refinance is a no cash-out refinance of any mortgage in which all proceeds pay the existing mortgage liens on the property and the costs.

   Sources 7 · Handbook 4000.1, II.A.8, Programs and Products - Refinances, '(B) Types of Refinances': 'in which the mortgage proceeds are not limited to specific purposes'; 'limited to the purpose of extinguishing the existing debt and costs associated with the transaction'; 'Rate and Term refers to a no cash-out refinance of any Mortgage in which all'; 'proceeds are used to pay existing mortgage liens on the subject Property and' · Checked October 17, 2026

9. According to HUD Handbook 4000.1, an FHA rate and term refinance is only permitted on owner-occupied principal residences and HUD-approved secondary residences; the maximum loan-to-value is 97.75% if the home has been your principal residence for the previous 12 months (or since you bought it, if less than 12 months ago), and 85% if you have lived there for less time.

   Sources 7 · Handbook 4000.1, II.A.8, 'vi. No Cash-Out Refinances', '(A) Rate and Term', pp. 438–439: 'Rate and Term refinance transactions are only permitted on owner-'; '97.75 percent for Principal Residences that have been owner-occupied'; 'for the previous 12 months, or owner-occupied since acquisition if'; '85 percent for a Borrower who has occupied the subject Property as' · Checked October 17, 2026

10. According to HUD Handbook 4000.1, on an FHA cash-out refinance the home must have been owned and occupied as a principal residence by at least one borrower for the 12 months before case number assignment; the borrower must have made all mortgage payments within the month due for the previous 12 months (or since getting the mortgage, if less); the current mortgage must have at least six months of payments; and the maximum loan-to-value is 80%.

    Sources 7 · Handbook 4000.1, II.A.8, Cash-Out Refinances, pp. 437–438: 'must have been owned and'; 'occupied by at least one Borrower as their Principal Residence for the 12'; 'made all payments for all their Mortgages within the month due for the'; 'previous 12 months or since the Borrower obtained the Mortgages, whichever'; 'Subject Properties with Mortgages must have a minimum of six months of'; 'The maximum LTV is 80 percent of the Adjusted Value.' · Checked October 17, 2026

11. According to HUD Mortgagee Letter 2023-05, the FHA upfront mortgage insurance premium is 175 basis points (1.75%) of the base loan amount on all mortgages, with exceptions such as certain refinances of FHA loans endorsed before June 1, 2009; and the annual premium also applies to all mortgages, with similar exceptions.

    Sources 8 · Mortgagee Letter 2023-05 (February 22, 2023), Appendix 1.0, p. 2: 'All Mortgages: 175 Basis Points (bps) (1.75%) of the Base Loan Amount'; 'Streamline Refinance and Simple Refinance Mortgages used to'; 'refinance a previous FHA-endorsed Mortgage on or before'; p. 3: 'Annual Mortgage Insurance Premium (MIP)'; 'Applies to all Mortgages except:' · Checked October 17, 2026

12. According to the IRS, the ITIN is for people who need a taxpayer identification number for federal tax purposes but are not eligible for a Social Security number; a person with a U.S. work visa qualifies for an SSN; you cannot have both an ITIN and an SSN; once you get an SSN you must stop using the ITIN and use the SSN for taxes; and you should notify the IRS, by mail or at a local office, so it combines all your tax records under your SSN; if you do not, you may not receive credit for all wages paid and taxes withheld; the IRS voids the ITIN and associates all prior tax information filed under it with the SSN.

    Sources 9 · Individual Taxpayer Identification Number (ITIN) (last reviewed Oct. 28, 2025): 'but you aren’t eligible for a Social Security number (SSN)'; 'Nonresident alien with a U.S. work visa (since you qualify for an SSN)'; 'You can't have both an ITIN and an SSN.'; 'Stop using your ITIN'; 'Use your SSN for tax purposes.'; 'We'll combine all your tax records under your SSN'; 'If you don't notify us, you may not receive credit for all wages paid and taxes withheld'; 'You can notify us by mail or at a local IRS office'; 'Write a letter stating you were assigned an SSN and want your tax records combined'; 'We'll void your ITIN and associate all prior tax information filed under the ITIN with the SSN' · Checked October 17, 2026

13. According to the CFPB, a prepayment penalty is a fee some lenders charge if you pay off all or part of your mortgage early, and you would have agreed to it at closing; not all mortgages have one; it typically applies if you pay off the whole balance, for example because you sell or refinance, within a specific number of years (usually three or five); and the CFPB advises reading the fine print to understand when and how much you would pay.

    Sources 10 · What is a prepayment penalty? (last reviewed Sep. 11, 2024): 'A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early'; 'you would have agreed to this when you closed on your home'; 'Not all mortgages have a prepayment penalty'; 'because you sold your home or are refinancing your mortgage'; 'within a specific number of years (usually three or five years)'; 'make sure to read the fine print carefully' · Checked October 17, 2026

14. Under Regulation Z (12 CFR §1026.43(g)), a consumer credit transaction secured by a dwelling that the section covers must not include a prepayment penalty unless the law otherwise permits it and the loan has an annual percentage rate that cannot increase, is a qualified mortgage and is not a higher-priced mortgage loan; even then, the penalty cannot apply after the three-year period following closing or exceed 2% of the balance prepaid in the first two years or 1% in the third year; and a creditor offering a loan with a penalty must also offer an alternative without one.

    Sources 11 · 12 CFR §1026.43(a) ('any consumer credit transaction that is secured by a dwelling') and (g)(1)–(3): 'A covered transaction must not include a prepayment penalty unless'; 'Has an annual percentage rate that cannot increase after consummation'; 'Is a qualified mortgage'; 'Is not a higher-priced mortgage loan'; 'Must not apply after the three-year period following consummation'; '2 percent, if incurred during the first two years following consummation'; '1 percent, if incurred during the third year following consummation'; 'unless the creditor also offers the consumer an alternative covered transaction without a prepayment penalty' · Checked October 17, 2026

15. According to the CFPB, the Loan Estimate is a three-page form you receive after applying for a mortgage; the lender must provide it within three business days of receiving your application; all lenders use the same standard form; it shows whether the loan has a prepayment penalty; and receiving one does not mean the loan is approved.

    Sources 12 · What is a Loan Estimate? (last reviewed Aug. 9, 2024): 'a three-page form that you receive after applying for a mortgage'; 'within three business days of receiving your application'; 'All lenders are required to use the same standard Loan Estimate form'; 'penalties for paying off the loan early (a prepayment penalty )'; 'the lender has not yet approved or denied your loan application' · Checked October 17, 2026

16. According to the CFPB, it is a good idea to request Loan Estimates from at least three different lenders and compare them; to ask each lender for the APR, which reflects the rate, points and certain other charges; to make sure any points you pay actually lower your rate; and to ask, among other things, whether you can repay the loan early without penalty.

    Sources 13 · How do I find the best loan available when I'm shopping for a home mortgage loan? (last reviewed Sep. 11, 2024): 'request loan estimates from at least three different lenders and compare them'; 'The APR tells you the yearly cost of the loan based on the interest rate as well as points, broker fees, and certain other charges'; 'make sure that you actually get a lower interest rate in exchange for the extra points you pay'; 'Can I repay the loan early without penalty?' · Checked October 17, 2026

17. According to the CFPB, all mortgages involve origination services and costs, even if some are advertised as having no fees or no closing costs; lenders do this by charging a higher rate in exchange for a credit, or by adding the closing costs to the loan amount; a higher rate means paying more over time, and a larger loan raises your payments and reduces your equity.

    Sources 14 · Is there such a thing as a no-cost or no-closing cost loan or refinancing? (last reviewed Apr. 3, 2024): 'There are services rendered and costs related to originate all mortgages'; 'charging you a higher interest rate and giving you a credit'; 'adding the closing costs to your loan amount'; 'increase your payments and reduce your equity' · Checked October 17, 2026

18. According to the CFPB, for most non-purchase mortgages, such as refinances, you have the right of rescission: three business days to cancel after signing, counting Saturdays but not Sundays or legal public holidays; the clock starts once you have signed the note, received the Truth in Lending disclosure (usually the Closing Disclosure) and received two copies of the notice of your right to cancel; you must give notice in writing, not by calling or visiting; your money must be returned within 20 calendar days; and if you cancel the refinance, you still owe your original loan.

    Sources 15 · Can I change my mind after I sign the loan closing documents for my second mortgage or refinance? (last reviewed Aug. 8, 2024): 'You have the right to cancel, also known as the right of rescission, for most non-purchase money mortgages'; 'Refinances and home equity loans are examples of non-purchase money mortgages'; 'three business days to cancel'; 'business days include Saturdays, but not Sundays or legal public holidays'; 'You receive two copies of a notice explaining your right to rescind'; 'You can't rescind just by calling or visiting the lender'; 'Within 20 calendar days after your lender receives your notice of rescission'; 'If you refinance and then rescind the refinance loan, you will still have to pay the original loan' · Checked October 17, 2026

19. According to the CFPB, you do not have a right of rescission when the loan is used to buy or build your principal home, when you refinance or consolidate with the same creditor a loan already secured by your home and borrow no additional funds, or when a state agency is the creditor.

    Sources 16 · Are there situations where I would not have a right of rescission? (last reviewed Sep. 11, 2024): 'Your loan is used to purchase or build your principal home'; 'You consolidate or refinance with the same creditor a loan that is already secured by your home, and no additional funds are borrowed'; 'A state agency is the creditor for the loan' · Checked October 17, 2026

20. According to the Justice Department's Executive Office for Immigration Review (EOIR), only certain people can represent you, including validly licensed attorneys and accredited representatives; notarios, document preparers, immigration consultants and travel agents are not allowed to practice law, give you legal advice or tell you whether you are eligible for immigration relief.

    Sources 17 · Can Someone Represent You Before EOIR?: 'Those include validly licensed attorneys and accredited representatives'; 'Notarios , document preparers, immigration consultants, and travel agents are not allowed to practice law'; 'They cannot give you legal advice'; 'tell you if you are eligible for immigration relief' · Checked October 17, 2026

21. According to the CFPB, HUD-approved housing counselors advise on buying a home, renting, defaults and credit, and can offer independent advice about whether a particular set of mortgage loan terms fits your objectives, often at little or no cost.

    Sources 18 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'whether a particular set of mortgage loan terms is a good fit based on your objectives'; 'often at little or no cost to you' · Checked October 17, 2026