Home financing in Graves County.

Home financing — most often called a mortgage — is a loan that lets you buy a home without paying the full price upfront.

You borrow money from a lender, move in, and repay the loan in monthly installments over a set number of years (commonly 15 or 30).

The home itself serves as collateral, meaning the lender has a legal claim on the property until the loan is fully paid.

There are several types of home loans available in Kentucky:

• **Conventional loans** — offered by banks and credit unions, usually requiring a credit score of 620 or higher and a down payment of at least 3–5%.

• **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%. They are a common starting point for first-time buyers.

• **USDA Rural Development loans** — because most of Graves County is classified as rural, many buyers here qualify for USDA loans, which can offer zero down payment and competitive rates.

• **VA loans** — for veterans and active-duty service members, with no down payment required.

• **ITIN loans** — some community lenders offer mortgages to borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN).

The type of loan that fits you best depends on your income, credit history, immigration status, and the property you want to buy. A local housing counselor can help you compare options without any sales pressure.

Graves County's economy is anchored in agriculture (especially soybean and corn farming), manufacturing, small retail, and a growing healthcare sector centered in Mayfield.

Many residents are self-employed farmers, seasonal workers, construction contractors, or own small family businesses.

Lenders in this region understand that income can be irregular or documented differently than a traditional W-2 paycheck.

**General eligibility signals lenders look for:**

- A steady income history — even if it is self-employment, farm income, or cash-based work documented through tax returns.

- A debt-to-income ratio (DTI) typically below 43%, meaning your total monthly debt payments should not exceed 43% of your gross monthly income.

- A credit score, though some ITIN-friendly and community lenders will consider alternative credit history (on-time rent, utility, or phone payments).

- A down payment — ranging from 0% (USDA) to 3–20% depending on the loan type.

- Proof that the property is your intended primary residence (for most assistance programs).

**Good news for Graves County buyers:** Because the county is predominantly rural, USDA Rural Development loan eligibility covers most properties here — including homes in and around Mayfield, Wingo, Sedalia, and Fancy Farm. This is a major local advantage that buyers outside rural areas do not have access to.

If you are undocumented or use an ITIN, you are not automatically disqualified. Several community lenders and CDFIs offer ITIN mortgage products. You will need strong income documentation and a solid rental payment history.

Gathering paperwork before you apply saves time and stress. The exact list varies by lender and loan type, but here is what most home loan applications in Kentucky will require:

**For income and employment:**

- Last two years of federal tax returns (all schedules, especially Schedule C or F for self-employed or farm income)

- Last two years of W-2s or 1099s (if applicable)

- Last 30–60 days of pay stubs (if you have an employer)

- Profit-and-loss statement for self-employed applicants (sometimes prepared by a CPA or bookkeeper)

**For assets and savings:**

- Last two to three months of bank statements (all pages, all accounts)

- Documentation of any gift funds if a family member is helping with your down payment

**For identity and residency:**

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

- Social Security Number or ITIN

- Proof of residency or immigration status (varies by loan type)

**For the property:**

- Purchase contract (once you have an accepted offer)

- Most lenders will order their own appraisal; you do not need to arrange this yourself

**Tip:** Keep digital or paper copies of everything in one folder. Lenders often ask for the same documents more than once during the process — this is normal and does not mean anything is wrong with your application.