Home financing in Metcalfe County.

Home financing — most commonly a mortgage — is a loan that lets you buy a house by paying for it over time, usually 15 to 30 years. You borrow money from a lender, use the home as collateral (security for the loan), and make monthly payments that include both principal (the amount you borrowed) and interest (the lender's fee for lending it).

In Metcalfe County, most home buyers use one of four main loan types:

• **Conventional loans** — standard bank or credit union loans, usually requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — backed by the Federal Housing Administration, these allow credit scores as low as 580 and down payments as low as 3.5%. They are popular with first-time buyers in rural Kentucky.

• **USDA Rural Development loans** — because Metcalfe County is a designated rural area, many properties here qualify for USDA loans, which can offer zero down payment and low interest rates.

• **VA loans** — for eligible veterans and active-duty military, these offer zero down payment and no private mortgage insurance.

Federal programs like FHA, USDA, and VA set the general rules, but you still access these loans through a local or regional lender. That local layer — the bank, credit union, or CDFI who actually works with you — is where the real help happens.

Metcalfe County is a small, rural county in south-central Kentucky, centered around Edmonton.

The local economy is built around agriculture, small businesses, light manufacturing, and service trades.

Many residents are self-employed, work seasonal or agricultural jobs, or are part of the county's growing Latino community — all groups that standard lenders sometimes overlook.

Here is what local qualification generally looks like:

**Income:** There is no single income requirement. Lenders look at your income relative to the loan amount. USDA loans for this region have income limits (typically around $110,650 for a household of 1–4 in a Kentucky rural county, adjusted periodically), so they are targeted at moderate-income buyers, not the wealthy.

**Credit score:** Conventional loans typically want 620+. FHA loans go down to 580 (or even 500 with a larger down payment). Some CDFIs and community lenders work with buyers who have thin credit files or are rebuilding credit.

**ITIN borrowers:** If you do not have a Social Security Number, you can still qualify for a mortgage using an Individual Taxpayer Identification Number (ITIN). Not every lender offers this, but several regional and mission-driven lenders do (see Section 4).

**Self-employed and farm workers:** Lenders will want to see two years of tax returns to document income. Working with a lender who understands agricultural or seasonal income patterns is important — a local credit union or CDFI is often better than a large national bank for this.

**Down payment:** Programs exist to help you cover down payment costs. You do not necessarily need to have 20% saved. See Section 5 for Kentucky-specific help.

Gathering your documents ahead of time makes the process much smoother. Every lender is slightly different, but here is what most will ask for:

**Identity & residency:**

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

- Social Security Number or ITIN

- Proof of residency or immigration status, if applicable

**Income documentation:**

- Last two years of federal tax returns (all pages, all schedules)

- Last two years of W-2s or 1099s

- If self-employed: business tax returns, profit-and-loss statement

- Last 30–60 days of pay stubs (if a salaried employee)

- Documentation of any rental income, child support, or other income

**Assets:**

- Last 2–3 months of bank statements (all pages)

- Documentation of any gift funds used for a down payment (a gift letter is usually required)

**Property:**

- Purchase agreement (once you have an accepted offer)

- Address of the property

**Credit:**

- The lender will pull your credit report — you do not need to bring this, but you should review your own credit at annualcreditreport.com before applying so there are no surprises.

**Tip for ITIN borrowers:** Bring your ITIN letter from the IRS and all tax returns filed under that number. Lenders who offer ITIN loans are experienced with this documentation and will walk you through it.