3d rendering gold - ITIN - written on textured rustic black metal positioned in a diagonal line. American money. Money falling. concept: ITIN loans
Jordan Schneir
By: jordan_shneir
Read in 9 minutes

5 Myths About ITIN Loans… Debunked!

One of the most challenging obstacles for immigrants attempting to do business in the United States is not being able to leverage the same benefits as permanent residents. Even if you don’t have a social security number, you can still access worthwhile resources to help support your business by leveraging your individual taxpayer identification number (ITIN). 

There are many other benefits as well, such as being able to obtain a drivers license (in many states), opening a bank account, and to help furnish documentation required to rent, buy, or do business in the US. 

If you haven’t gone through the process of obtaining an ITIN number, we created a guide to help you apply. 

While you may think that having an ITIN instead of a SS number limits your access to resources to grow your business, there are plenty of ways to make the most of your current status and keep things going strong. 

With this number, you can even get a loan. ITIN loans can give you a leg up and keep your business going strong, and we are here to help debunk some myths associated with obtaining them. 

An ITIN loan can be a great tool to help you succeed, so let’s jump right in and dispel some of the rumors around these products. 

Young Hispanic couple smiling to camera outside their shop. concept: itin loans

Myth: You cannot get a business loan if you only have ITIN

Truth: Much like an SSN, an ITIN can be used to prove your identity as a borrower. 

In the case of applying for a loan, they both serve a similar purpose, so even if you don’t qualify for an SSN, you can use your ITIN to access the funds you need with specific lenders. While there will be additional documentation required, it allows the lender to reference the most accurate information about you so that they can better complete the underwriting process. 

Remember, the quality of any financial product depends on the lender’s confidence that the borrower will be able to repay. An ITIN makes it much simpler to prove that you are who you say you are, and thus makes it easier to apply and get approved for a business loan than without. 

The main limitation of this ID is that it is not as comprehensive as an SSN, and additional information will be required. Regardless, it is still possible to secure competitive funding options without an SSN. 

For more information on what additional information is needed, reference our guide on how to get an ITIN loan.

Myth: It’s not safe to get ITIN loans 

Truth: ITIN’s are not used to enforce immigration law in the United States. Taking out a loan does not open you up to legal challenges simply because of your immigration status. 

The IRS does not share applicant information with any other government agency unless there is a specific issue regarding taxes or a non-criminal investigation, in which case a court order is required. 

When the program was established in the mid-1990s, it was designed to create a legitimate way for immigrants to pay taxes and leverage some of the benefits and conveniences enjoyed by those from the United States. 

The promise of privacy is a fundamental component of the US tax code, and this principle extends to the program as well. 

Trust is vital in the US tax system, and whether you’re a citizen or an immigrant, the pledge to protect an individual’s identity is foundational. It is to ensure that people have an interest in paying taxes instead of operating out of the confines of the law, and the promise of privacy makes that possible. 

Young couple signing a contract on a meeting with investment agent in the office. concept: itin loans

Myth: ITIN loans offer very little money

Truth: These products are becoming more and more worthwhile as lenders have been able to see a track record of success in serving borrowers with an ITIN. 

Historically, when the system was rolled out, it was hard to calculate the risk associated with lending to individuals or businesses without an SSN. What lenders discovered nowadays is that there was a massive opportunity in serving immigrants, and the loans have become more lucrative for borrowers as ITIN based lending became possible. 

Many lenders have always had an interest in doing business with local communities and underserved groups, including immigrant populations. They have been the primary source for these types of loans and have had a track record of using varying forms of documentation (including using ITINs) to complete the underwriting process. 

At Camino Financial, we offer business products up to $400,000 with competitive interest rates as well. Which leads us to debunk the next myth… 

Myth: ITIN loans are very expensive

Truth: Lenders have found creative ways to underwrite loans to borrowers without an SSN, and many are offering great rates to qualified borrowers. 

While not all products are created equal, these are becoming more and more competitive simply because of the number of customers without a SS security number. 

Over time, lenders have created established profiles of their clientele (immigrant and non-immigrant), they have been able to more appropriately assess the creditworthiness of the individuals with whom they do business. The same is true for ITIN loans, which now have a proven history of success. 

The main question for borrowers is, can you get as good of a rate as those with an SSN? 

The fact is, lenders have discovered that ITIN borrowers with a solid score can secure an extremely competitive rate as these services have become more available and tested over time. 

Check it out for yourself; these are our rates which are applicable for both SSN and ITIN holders, you’ll notice they are incredibly competitive.

CAMINO FINANCIAL Microloans Small Business Loans
Annual Interest Rates 25.50% – 40% 12.00% to 24.75%
Loan Payback Period 24 to 36 Months 24 to 60 Months
Type of Rate Fixed Fixed
Loan Size Range $5,000 to $75,000 $10,000 to $400,000
Origination Fee (% of Loan Amount)  6.99% 5.00%
Time from Application to Funding 2 to 4 days 3 to 10 days

Myth: You need collateral to get ITIN loans

Truth: You don’t!

As with any loan, collateral can help improve your financial standing and help you qualify for more and at a better rate, but it can also be stressful to out your assets at risk. 

The good news is, you don’t need collateral to get a great deal. Not all lenders are the same, and we have made it our mission to offer a wide range of products and services for business owners, including ITIN loans without collateral. 

Portrait Of Female Owner Of Independent Clothing And Gift Store With Digital Tablet. concept: itin loans

Leverage your ITIN and grow your business

If you need help exploring options to support your business in these challenging times, we’re here for you. We believe that immigrants have been an integral part of this nation since the beginning. We specialize in offering solutions for ITIN-only owners like you to ensure that no business is left behind. 

At Camino Financial, we assist owners like you so you can access the resources you need to stay ahead. Our financial products can help ensure your business is on solid ground so you can focus on running your company.

Apply for a business loan today and get ready to succeed.

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