Home financing in Montgomery County.

Home financing is the process of borrowing money to purchase, build, or improve a home — and then repaying that loan over time, usually with interest.

The most common form is a mortgage, where the property itself serves as collateral for the loan.

In Montgomery County, Indiana, home prices tend to be more affordable than in large metro areas, which means your monthly payment and down payment requirements may be lower than you expect.

There are several types of home loans:

• **Conventional loans** — Offered by banks, credit unions, and mortgage companies. Typically require a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — Backed by the federal government, these allow lower credit scores (as low as 580) and down payments as low as 3.5%. They are a common starting point for first-time buyers.

• **USDA loans** — Because much of Montgomery County is classified as rural or semi-rural, many properties here qualify for USDA Rural Development loans, which can offer 0% down payment for eligible buyers.

• **VA loans** — Available to veterans, active-duty service members, and surviving spouses. No down payment required.

• **ITIN loans** — For buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). Several local and regional lenders offer these.

Understanding which type fits your situation is the first step — and local intermediaries like credit unions and CDFIs can walk you through this at no cost.

Montgomery County's economy is rooted in manufacturing, agriculture, healthcare, and small business. Many residents work in skilled trades, run their own contracting businesses, or have self-employment income — situations that can look complicated on paper but are very manageable with the right lender.

**If you are a W-2 employee:** You typically need two years of employment history, a credit score of 580 or higher (for FHA), and enough steady income to cover monthly payments plus living expenses. Many workers at local employers like Nucor Steel or Sugar Creek Packing can qualify.

**If you are self-employed or a solo contractor:** Lenders will look at two years of tax returns to calculate your qualifying income.

Keep your business and personal finances separate and make sure your returns are filed — even if your income fluctuates seasonally.

A local credit union or CDFI can often work more flexibly with self-employed borrowers than a large national bank.

**If you use an ITIN instead of a Social Security Number:** You can still buy a home in Indiana.

ITIN mortgage programs exist specifically for immigrants and mixed-status families.

You will generally need 2 years of ITIN tax returns, a solid rental or bill-payment history, and a down payment (typically 10–20%). Some lenders accept ITIN with as little as 10% down.

**First-time homebuyers:** Indiana defines a first-time buyer as someone who has not owned a primary residence in the past three years. This opens the door to down payment assistance and below-market interest rates through the Indiana Housing and Community Development Authority (IHCDA).

**Small real estate investors:** If you are buying a duplex or small rental property in Crawfordsville or surrounding towns, lenders will consider your potential rental income as part of your qualifying picture. A local lender familiar with Montgomery County's rental market will give you the most accurate assessment.

Gathering documents early makes the process much smoother. Here is what most lenders will ask for:

**Identity & Residency**

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

• Social Security Number or ITIN

• Immigration documents if applicable (green card, visa, work permit)

**Income**

• Last 2 years of federal tax returns (personal and business if self-employed)

• Last 2 years of W-2s or 1099s

• Last 30 days of pay stubs (for W-2 employees)

• Profit-and-loss statement (for self-employed borrowers — your accountant can prepare this)

• Award letters for Social Security, disability, or pension income

**Assets**

• Last 2–3 months of bank statements (all accounts)

• Documentation of any gift funds (a gift letter from the donor)

• Retirement or investment account statements

**Credit & Debt**

• Lenders will pull your credit report — you do not need to bring this

• A list of your current monthly debts (car payments, student loans, credit cards) is helpful

**Property**

• Purchase agreement or contract (once you have found a home)

• Landlord contact info if you currently rent (for rental history verification, especially useful for ITIN loans)

Tip: Keep digital copies of all documents in one folder on your phone or computer. This saves time when multiple lenders or programs ask for the same paperwork.