Home financing in Marshall County.

Home financing simply means borrowing money to purchase a home and repaying it over time, usually 15 to 30 years, with interest. The most common form is a mortgage loan — a lender gives you the money to buy the home, and the home itself serves as collateral until the loan is paid off.

There are several types of home loans you may hear about in Marshall County:

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

• **FHA loans** — Backed by the Federal Housing Administration. These allow lower credit scores (as low as 580) and down payments as low as 3.5%. Popular with first-time buyers.

• **USDA Rural Development loans** — Many parts of Marshall County, including areas outside Marshalltown, qualify as rural under USDA guidelines. These loans can offer zero down payment to eligible buyers.

• **ITIN loans** — For buyers who do not have a Social Security number but have an Individual Taxpayer Identification Number (ITIN). Some local and regional lenders offer these — see Section 4.

• **Iowa Finance Authority (IFA) programs** — Iowa's state housing finance agency offers down payment assistance, reduced-rate mortgages, and first-time homebuyer support layered on top of conventional or FHA loans.

Understanding which loan type fits your situation is the first step. You do not need to figure this out alone — local housing counselors can help at no cost.

Marshall County's economy is anchored by manufacturing, meatpacking, agriculture, and a growing Latino community centered in Marshalltown. Many residents are self-employed contractors, seasonal workers, or employees with non-traditional income — and lenders who understand this local reality are your best starting point.

**General eligibility factors lenders consider:**

• **Income** — Steady income matters more than the type. Self-employed borrowers can qualify using two years of tax returns or bank statements. Seasonal and gig income is counted differently — ask your lender how.

• **Credit history** — A score of 580 or higher opens FHA options. Some local ITIN lenders do not use traditional credit scores at all, instead looking at rent payment history, utility bills, and bank statements.

• **Down payment** — As little as 0% (USDA), 3.5% (FHA), or 3% (some conventional loans). Down payment assistance programs exist through Iowa Finance Authority.

• **Immigration status** — U.S. citizenship is not required for most loan types. Lawful permanent residents, visa holders, and ITIN holders have all successfully purchased homes in Marshall County. Ask specifically about ITIN loan products (see Section 4).

• **Debt-to-income ratio (DTI)** — Lenders look at how much of your monthly income goes to debt payments. A DTI under 43% is generally preferred, though some programs allow higher.

**Local context:** Marshalltown and Marshall County have seen strong community reinvestment interest following the 2018 tornado. Some lenders and CDFIs have active programs in the area as a result. Do not be discouraged by past challenges — local intermediaries know this market.

Gathering your documents before you apply saves time and reduces stress. Here is a practical checklist for most home loan applications in Iowa:

**Identification**

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

• Social Security number OR Individual Taxpayer Identification Number (ITIN)

**Income Verification**

• Last 2 years of federal tax returns (W-2s or 1099s, or both)

• Last 2–3 months of pay stubs (if employed)

• Last 12–24 months of bank statements (especially for self-employed or ITIN applicants)

• Profit and loss statement if self-employed (your tax preparer can help)

**Assets**

• Last 2–3 months of bank statements showing your down payment funds

• Documentation of any gifts (a gift letter if family is helping with down payment)

**Property**

• Purchase agreement or address of the home you want to buy (after you find it)

**Other**

• Rental payment history (12 months of canceled checks or landlord letters — very helpful for ITIN or thin-credit applicants)

• Utility bill payment history

• Any prior bankruptcy or foreclosure documentation if applicable

**Tip:** You do not need to have everything perfect before talking to a lender or housing counselor. Many local organizations (see Section 4) will help you organize your documents for free before you apply.