Home financing in Henry 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 take the home through a legal process called foreclosure, so it is important to borrow only what you can comfortably repay.

Mortgages come in several shapes:

• **Conventional loans** are offered by banks and credit unions and are not backed by the government. They typically require a credit score of 620 or higher and a down payment of at least 3–5%.

• **FHA loans** are insured by the Federal Housing Administration and allow down payments as low as 3.5%, making them popular with first-time buyers who have limited savings.

• **USDA Rural Development loans** offer zero-down-payment financing for properties in eligible rural and small-town areas. Much of Henry County — including areas around Kewanee, Geneseo, and Galva — may qualify. Check eligibility at the USDA website.

• **VA loans** are available to eligible veterans and active-duty service members with no down payment required.

• **ITIN-based loans** are mortgage products designed for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). Several community lenders and credit unions in Illinois offer these.

Think of the loan type as the frame of a house — important, but you still need the right local builder (lender) to make it real.

Henry County sits in the heart of western Illinois, with a population of roughly 48,000. The county's economy is rooted in agriculture, manufacturing (including John Deere-related industries), healthcare, and small retail. Kewanee is the county seat; Geneseo, Cambridge, and Galva are other key communities.

**General qualification factors lenders look at:**

• **Income stability** — Steady employment, self-employment income, or farm income all count. Self-employed contractors and farmers may need to show two years of tax returns.

• **Credit history** — A score of 580–620 is often the floor, depending on the loan type. No credit history is different from bad credit — some local lenders and CDFIs work with thin-file applicants.

• **Debt-to-income ratio (DTI)** — Most lenders want your total monthly debts (including the new mortgage) to be no more than 43–45% of your gross monthly income.

• **Down payment** — Ranges from 0% (USDA, VA) to 3–20% depending on the loan type.

**Henry County-specific notes:**

• Many properties in the county — especially outside Kewanee and Geneseo city limits — are in USDA-eligible rural zones. This is a significant advantage for buyers with limited down payment savings.

• Agricultural workers and seasonal employees can qualify, but income documentation may require extra steps. A local CDFI or farm-focused lender can help structure your application.

• Spanish-speaking buyers and immigrant families with ITIN numbers are served by specific lenders in the region (see Section 4).

• Home prices in Henry County are generally below the state median, which means buyers here often need smaller loan amounts — sometimes making it easier to qualify.

Gathering your paperwork before you meet with a lender saves time and reduces stress. Different loan types may require slightly different documents, but here is a solid starting list:

**Identity & Residency**

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

- Social Security Number OR ITIN

- Proof of residency (utility bill, lease agreement, etc.)

**Income**

- Last two years of federal tax returns (all pages)

- Last two years of W-2s or 1099s

- Recent pay stubs (last 30 days) if employed

- Profit-and-loss statement if self-employed or a solo contractor

- Bank statements for the last 2–3 months

**Assets & Debts**

- Bank and savings account statements

- Statements for any retirement or investment accounts

- List of current debts (car loans, credit cards, student loans)

**Property**

- Purchase agreement or listing details for the home you want to buy

- Address and parcel information

**Tip for agricultural workers and seasonal employees:** If your income varies month to month, bring 12 months of bank statements rather than just two or three. This gives lenders a fuller picture of your cash flow.

**Tip for ITIN borrowers:** Bring your ITIN letter from the IRS (CP565 or CP566) and at least two years of ITIN-filed tax returns. Some lenders also accept bank statements as a substitute for traditional income verification — ask specifically about their ITIN mortgage product requirements.