ITIN mortgage loans enable those without SSNs to purchase homes.
For Cass County citizens, many of whom are Hispanic, who do not have a social security number, a new loan program from Security Federal Savings Bank aims to level the playing field.
It is extremely difficult for residents, including undocumented immigrants, to obtain a loan from a bank if they do not have an SSN. However, a lot of people do have individual taxpayer identification numbers (ITINs). In order to assist those residents in becoming homeowners, Security Federal Savings Bank, which is headquartered at 314 4th St., has developed a new mortgage financing program that employs ITINs rather than social security numbers.
Annette Russell, president and chief executive officer of Security Federal Savings Bank, said, "We recognized that is a large component of the communities that we serve, the market region that we serve. "As a community bank, we aim to be able to offer goods and services that satisfy the requirements of every member of the community."
The Hispanic population had increased by 40% in Cass and Tippecanoe counties during the previous ten years, and there was a widespread frustration among that group over not being qualified for a loan, which led to the creation of the program.
Because all of their money was going towards rent rather than developing equity or ownership, Russell argued that this in some ways prevented them from being able to save for any future ownership. Therefore, we are working to put them in a better position to offer them financial security and ownership so that they may develop equity.
In the fall of 2021, the loan program was launched. A legitimate form of identity other than a driver's license, a verified source of income, employment documentation, and credit documentation are all requirements for obtaining a loan.
Those without established credit can get assistance from alternative sources of credit. A monthly payment to Netflix, a contract purchase, or anything else that demonstrates the applicant's ability to make a monthly payment are examples of alternatives given by Bryan Martinez, the loan originator for the Logansport bank.
The bank's marketing director, Julia Snipes, claimed that the ITIN customers are eligible for a credit builder loan. "This secured loan enables individuals to accept additional assistance for items that might aid in their transition from renters to homeowners. The credit builder loan can assist them at the very beginning of their trip if they have no credit and don't have the alternative credit that we require to underwrite the loan."
The program offers opportunities for refinancing loans as well. Martinez was able to cut Jose Garcia and Cristina Salazar's monthly expenses by roughly $600 by refinancing their house.
Garcia claimed that some organizations assisted community members in purchasing homes but charged excessive loan rates, claiming that 10% interest was typically the best case situation.
The family made monthly loan payments, but because the interest was so enormous, they never recovered their costs. They are now able to work on reducing the principal loan balance while still saving money thanks to Security Federal.
They claimed that because of the assistance they had received, they thought of the bank as a family.
Jose de Rios and Maria Aguilar, residents of Lafayette, had been renting the home for seven years when the landlord made the decision to sell it. They had a finite amount of time to relocate and find a new home. When their daughter came across the loan's advertisement one day on Facebook, she urged her father to submit an application. They were able to purchase a new home thanks to a loan from their neighborhood Security Federal Savings Bank.
According to Lucia Vela, a loan originator at the Lafayette office, "We take pride that we are able to give this to the Hispanic community." "People frequently think it's too difficult or fear they won't be eligible. In actuality, all you need to do is give it a shot. Check your location. We can devise a strategy to get you to the finish line even if you don't qualify today."
According to Vela, the Hispanic community is exceedingly money-savvy and prudent. She stated that in order for them to become homeowners, it is crucial to assist them in getting past the obstacles they face.
As a company, we've discovered that it's advantageousnot just for the bank, but also for the neighborhood we serve, she said.
The bank is working hard to satisfy the demands of the Hispanic community, including by hiring multilingual staff, adapting established programs to the needs of the new demography, and publishing forms in Spanish. A Diversity Equity and Inclusion Task Force was also established in 2021.
In order to ensure that those who are either not being served or are not being fairly served by the financial services business, Russell stated, "that is our aim. "We want to make sure that everyone feels welcomed, treated properly, and that we are giving them a product that is in their best interest when they go into a branch of Security Federal," says the company.
Garcia believes that people will be aware of the chance and confident in the procedure. Individuals find it challenging to trust other people at times, he said.
This chance hasn't existed in Logansport, Garcia claimed. For those who have never had the chance to do this previously, a wide door is now open.