Home financing in Butler County.

Home financing is a loan you use to buy, build, or improve a home. You borrow money from a lender and pay it back over time — usually 15 or 30 years — with interest. The home itself typically serves as collateral, meaning the lender can reclaim it if payments are not made.

There are several common types of home loans:

• **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** — backed by the Federal Housing Administration; allow lower credit scores (as low as 580) and down payments as low as 3.5%. These are popular with first-time buyers.

• **USDA Rural Development loans** — many parts of Butler County qualify because of their rural designation. These can require zero down payment for eligible buyers.

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

• **ITIN loans** — for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number. Not all lenders offer these, but some in and near Butler County do.

Federal programs like FHA and USDA set the rules, but local lenders, credit unions, and CDFIs are the ones who actually process your application and decide whether to work with you. That local layer is where the real relationship happens.

Butler County spans a wide range of communities — from El Dorado (the county seat) to Andover, Augusta, and smaller towns like Towanda, Douglass, and Leon. The economy here blends oil refining, agriculture, manufacturing, and a large commuter workforce that works in Wichita. That mix means lenders here are used to non-traditional income situations.

**You may qualify if you:**

- Have steady income from employment, self-employment, or contract work — even if it varies season to season

- Have been self-employed or a solo contractor for at least two years (lenders will look at your tax returns)

- Have an ITIN instead of a Social Security Number — some local and regional lenders specifically accommodate this

- Are buying in a rural or semi-rural part of Butler County and meet USDA income limits (generally moderate income for a household of your size)

- Are a veteran or active-duty service member stationed near Fort Riley or McConnell Air Force Base

**Solo contractors and self-employed buyers:** Lenders will usually ask for two years of tax returns, a profit-and-loss statement, and bank statements. If you write off a lot of expenses, your qualifying income may look lower than your actual earnings — a local loan officer or CDFI advisor can help you plan around this before you apply.

**Income limits for USDA loans in Butler County:** For a household of 1–4 people, the 2024 USDA income limit for Butler County is approximately $110,650. Larger households may qualify at higher income levels. Check with a local lender for current figures, as these update annually.

Gathering your documents before you apply saves time and avoids surprises. Every lender is a little different, but here is what most will ask for in Butler County:

**For all buyers:**

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

- Social Security Number or ITIN

- Two years of federal tax returns (all pages)

- Two most recent W-2s or 1099s

- Two to three months of recent bank statements

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

- Authorization to pull your credit report

**For self-employed buyers and solo contractors:**

- Two years of personal and business tax returns

- Year-to-date profit-and-loss statement (often prepared by a CPA or bookkeeper)

- Business bank statements (2–3 months)

- Business license or DBA registration, if applicable

**For ITIN buyers:**

- ITIN card or letter from the IRS

- Passport or consular ID

- Two years of ITIN-filed tax returns

- 12–24 months of bank statements (some lenders use these in place of employment history)

- Rental payment history or utility bills showing residency stability

**Tip:** Organize everything in a folder — physical or digital — before your first appointment. Lenders move faster when your paperwork is ready, and you will feel more confident in the conversation.