Home financing in Larue County.

Home financing is a loan — usually called a mortgage — that lets you buy, build, or improve a home by borrowing money and paying it back over time, typically 15 to 30 years.

The lender holds a legal interest in the property (called a lien) until the loan is paid off.

Your monthly payment usually covers the loan principal, interest, property taxes, and homeowner's insurance — often bundled together in what lenders call PITI.

For solo contractors and small real-estate investors in Larue County, the financing landscape goes well beyond the big national banks. Community lenders, credit unions, and mission-driven nonprofit lenders (called CDFIs — Community Development Financial Institutions) often offer more flexible terms, lower fees, and real one-on-one guidance. Some specialize in rural borrowers; others work specifically with people who use an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number.

Key terms to understand before you shop:

• Principal – the amount you borrow

• Interest rate – the cost of borrowing, expressed as a percentage

• APR (Annual Percentage Rate) – the true yearly cost, including fees

• Down payment – the cash you pay upfront (often 3%–20% of the purchase price)

• Escrow – an account where the lender holds your tax and insurance payments

• PMI (Private Mortgage Insurance) – required on some loans when your down payment is below 20%; adds to your monthly cost

Larue County's economy is rooted in agriculture, small manufacturing, construction trades, and local retail. Many residents are self-employed or work as solo contractors — landscapers, carpenters, electricians, and general laborers — whose income looks different on paper than a salaried employee's. That does not disqualify you. It just means you need a lender who understands how to read Schedule C tax returns, profit-and-loss statements, and bank statements.

General eligibility factors lenders review:

• Credit history – Most conventional loans prefer a score of 620 or higher, but some community and CDFI lenders work with lower scores or thin credit files.

• Income stability – Lenders typically want to see 2 years of consistent income. For contractors, this means 2 years of tax returns.

• Debt-to-income ratio (DTI) – Your total monthly debt payments divided by your gross monthly income. Lenders generally prefer this under 43%, but some rural and CDFI programs allow more flexibility.

• Employment type – Self-employed borrowers, seasonal workers, and 1099 earners can qualify; documentation requirements are simply different.

• ITIN borrowers – If you do not have a Social Security number, you may still qualify through ITIN mortgage programs offered by select community lenders and credit unions. Your ITIN tax history, bank statements, and rental or employment records become your qualifying documents.

• Rural location – Larue County's rural character makes many residents eligible for USDA Rural Development loan programs, which can offer zero-down-payment options for qualifying buyers.

Being a small-scale real-estate investor is not a barrier either. Community banks and credit unions in central Kentucky regularly work with buyers purchasing a second property as a rental, provided you can document income and assets clearly.

Gathering your paperwork before you start talking to lenders saves time and reduces stress. The exact list varies by lender and loan type, but here is what most will ask for:

For W-2 employees:

• Last 2 years of W-2 forms

• Last 2 years of federal tax returns (all pages)

• Last 30 days of pay stubs

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

• Government-issued photo ID

• Social Security number or ITIN

For solo contractors and self-employed borrowers:

• Last 2 years of federal tax returns, including Schedule C

• Year-to-date profit-and-loss statement (your accountant or bookkeeper can prepare this)

• Last 2–3 months of business and personal bank statements

• Business license or proof of business operation

• 1099 forms from clients, if applicable

For ITIN borrowers (additional or alternative documents):

• ITIN letter from the IRS

• Last 2 years of ITIN tax returns

• 12–24 months of bank statements showing consistent deposits

• Proof of residency (utility bills, lease agreements)

• Reference letters from landlords or employers, if no formal credit history

• Some lenders accept remittance records or foreign credit history

For real-estate investors:

• All of the above, plus

• Current leases on any rental properties you own

• Last 2 years of Schedule E (rental income/loss)

• Property tax statements and insurance declarations for existing properties

Tip: Keep copies of everything. Never give originals to a lender unless you have duplicates.