Home financing in Tolland County.

Home financing means borrowing money to buy, build, or improve a home — and agreeing to pay it back over time, usually with interest.

The most common form is a mortgage: a loan secured by the property itself.

If you stop making payments, the lender can eventually take the property back through a legal process called foreclosure, so it is important to borrow only what you can realistically afford.

There are several types of home loans available in Connecticut:

• **Conventional loans** — offered by banks and credit unions, usually requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — insured by the federal government; allow lower credit scores (as low as 580) and down payments as low as 3.5%. Good for first-time buyers.

• **USDA loans** — available in eligible rural and suburban areas of Tolland County (many parts qualify); no down payment required for income-eligible borrowers.

• **VA loans** — for eligible veterans and active-duty military; no down payment required.

• **ITIN loans** — designed for borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). Several lenders in Connecticut offer these.

• **Home equity loans / HELOCs** — for homeowners who already have equity and want to borrow against it for repairs, renovations, or investment.

Every loan comes with costs beyond the purchase price: closing costs, property taxes, homeowner's insurance, and sometimes private mortgage insurance (PMI). A trustworthy lender will explain all of these clearly before you sign anything.

Gathering your documents ahead of time will make the process much smoother. Here is what most lenders in Tolland County will ask for:

**For identity and residency:**

- Government-issued photo ID (passport, consular ID, state ID, or driver's license)

- ITIN letter from the IRS (if you do not have a Social Security Number)

- Proof of current address (utility bill, lease, or bank statement)

**For income — employed workers:**

- Two most recent pay stubs

- W-2 forms for the past two years

- Most recent federal tax returns (two years)

**For income — self-employed or contractors:**

- Federal tax returns for the past two years (Schedule C or partnership returns)

- Year-to-date profit and loss statement

- 12–24 months of business and personal bank statements

- Any contracts or letters showing ongoing work

**For assets:**

- Two to three months of bank statements

- Statements for any retirement or investment accounts

- Documentation of any gift funds (a gift letter may be required)

**For the property:**

- Signed purchase agreement (once you have an accepted offer)

- Homeowner's insurance quote

- Any HOA documents, if applicable

Do not be discouraged if you are asked for extra documents. Lenders often ask for additional items during underwriting — this is normal and does not mean your application is in trouble.