Home financing in Montgomery County.

Home financing is a loan that helps you buy, refinance, or renovate a residential property. The lender — a bank, credit union, CDFI, or community lender — gives you money upfront, and you pay it back over time with interest. The home itself usually serves as collateral, meaning the lender can take it back if you stop making payments.

For solo contractors and small real estate investors in Montgomery County, the most common types of home financing include:

• **Conventional mortgages** — standard loans from banks or credit unions, typically requiring a 5–20% down payment and a credit score of 620 or higher.

• **FHA loans** — federally backed loans with lower down-payment requirements (as low as 3.5%), useful if your credit score is between 580 and 619.

• **USDA Rural Development loans** — because much of Montgomery County qualifies as rural, many buyers here are eligible for zero-down-payment USDA loans. This is one of the most underused programs in the county.

• **ITIN loans** — offered by select community lenders and CDFIs for buyers who do not have a Social Security number but do have an Individual Taxpayer Identification Number.

• **Investment property loans** — used when you are buying a rental property or a fix-and-flip. These carry stricter requirements than owner-occupied loans.

Federal programs like FHA and USDA set the rules, but local lenders and CDFIs are the ones who actually process your loan and sit across the table from you. That local layer is what this guide focuses on.

Montgomery County's economy is built around agriculture, small retail, light manufacturing, and a growing self-employed workforce. Many residents work in trades — plumbing, electrical, HVAC, carpentry — often as sole proprietors or single-member LLCs. That matters because lenders look at income differently for self-employed borrowers.

**If you are a W-2 employee:** Qualification is straightforward. Lenders want to see two years of steady employment and a debt-to-income ratio under 43–50%, depending on the loan type.

**If you are self-employed or a solo contractor:** Lenders typically average your last two years of net income from your tax returns.

If you write off a lot of business expenses (which most contractors do), your taxable income may look lower than your actual earnings.

A local lender or CDFI who understands the trades economy can sometimes work with bank statements or profit-and-loss statements to get a fuller picture.

**If you have an ITIN instead of an SSN:** You can still qualify for a mortgage with the right lender. ITIN mortgages are offered by specific community lenders and CDFIs (listed in Section 4). You will need a solid rental history, a down payment — often 10–20% — and proof of steady income.

**For real estate investors:** Lenders will want to see that you have reserves (typically 3–6 months of mortgage payments in savings), a plan for the property, and ideally some landlord experience. Local lenders in smaller markets like Hillsboro tend to be more flexible about portfolio loans for investors than large national banks.

Property values in Montgomery County are generally below state averages, which means the loan amounts you need are more modest — and that can actually make it easier to qualify.

Gathering your documents before you talk to a lender saves time and shows you are serious. Here is what most lenders in Montgomery County will ask for:

**For all applicants:**

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

• Social Security number or ITIN

• Two years of federal tax returns (personal, and business if self-employed)

• Two most recent W-2s or 1099s

• Two to three months of recent bank statements

• Most recent pay stubs (if W-2 employed)

• Proof of any other income (rental income, child support, disability, etc.)

• Landlord contact information or 12–24 months of rental payment history

**If self-employed or a solo contractor, add:**

• Year-to-date profit-and-loss statement

• Business bank statements (12–24 months)

• Business license or DBA registration

• CPA letter confirming your self-employment status (some lenders require this)

**If applying with an ITIN:**

• Your ITIN letter from the IRS

• 12–24 months of on-time rent payment records (canceled checks or money order receipts work)

• Proof of residency in the county (utility bills, lease agreement)

**For investment properties:**

• A projected rent schedule or existing lease agreements

• Documentation of reserves (savings, retirement accounts)

• List of any other properties you own

Organize these in a folder — physical or digital — before your first lender conversation. Being prepared moves the process forward.