Home financing in Ohio County.

Home financing — most commonly called a mortgage — is a loan you use to purchase a house. You make a down payment upfront (usually somewhere between 0% and 20% of the purchase price), and the lender covers the rest.

You then repay the lender in monthly installments over a set number of years, typically 15 or 30.

The home itself serves as collateral, which means the lender can foreclose if you stop paying.

In Ohio County, most buyers use one of three broad types of loans:

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

• **Government-backed loans** — FHA loans (low down payment, flexible credit), USDA Rural Development loans (zero down payment for eligible rural areas — Ohio County qualifies for many of these), and VA loans (zero down for eligible veterans).

• **ITIN loans** — a specialized mortgage product for borrowers who do not have a Social Security number but do have an Individual Taxpayer Identification Number (ITIN). These are offered by select community banks and credit unions.

No single loan type is right for everyone. The goal of this guide is to help you understand which doors are open to you locally, right here in Ohio County.

Ohio County is a rural, agricultural county in western Kentucky with a population of roughly 24,000. Hartford is the county seat. The local economy is built around agriculture (corn, soybeans, tobacco), light manufacturing, small retail, and a growing number of self-employed tradespeople and solo contractors.

If you work in any of these sectors, here is what lenders typically look at:

**Self-employed or solo contractors:** Lenders will want to see at least two years of self-employment, documented through tax returns. If your reported income is low because of business deductions, some CDFI and community lenders will look at bank statements instead — this is called a bank-statement loan.

**Agricultural workers and farmhands:** USDA Rural Development loans are specifically designed for borrowers in rural counties like Ohio County. Income limits apply, but they are higher than many people expect. A family of four earning up to approximately $103,500 (2024 USDA limit for Kentucky non-metro areas) may still qualify.

**Immigrant and ITIN borrowers:** You do not need to be a U.S. citizen or have a Social Security number to buy a home in Kentucky. ITIN mortgage products exist specifically for this situation. Lenders will look at your ITIN tax history (typically 2 years of ITIN-filed returns), bank statements, and rental history.

**Credit score:** FHA loans accept scores as low as 580 with a 3.5% down payment. USDA and some community lenders work with scores in the 620–640 range. Some ITIN lenders evaluate credit differently, using alternative credit history (utility payments, rent receipts, remittance records).

**Stable income of any kind** — W-2, 1099, self-employment, or even a combination — can be used to qualify, as long as it is documented and consistent.

Gathering your documents before you talk to a lender saves time and reduces stress. The exact list varies by loan type, but here is a solid starting point for Ohio County borrowers:

**For all borrowers:**

- Government-issued photo ID (passport, consular ID/matrícula consular, or state ID)

- Two years of federal tax returns (or ITIN-filed returns)

- Two months of recent bank statements (all pages)

- Proof of current address (utility bill, lease agreement)

- Twelve months of rental payment history, if you currently rent

- Employment verification or business documentation (contracts, invoices, client letters)

**If you are self-employed or a 1099 contractor:**

- Two years of personal AND business tax returns

- A current profit-and-loss statement (your accountant or a local CDFI can help you prepare this)

- Business bank statements (12–24 months)

**If you are an ITIN borrower (no SSN):**

- Your ITIN card or IRS assignment letter

- Two years of ITIN-filed tax returns

- Twelve months of bank statements

- Proof of consistent income (pay stubs, contracts, or invoices)

- Twelve months of on-time rent or utility payments as alternative credit

**For USDA Rural Development loans:**

- Household income documentation for ALL adults living in the home (not just co-borrowers)

- Property address confirmation (USDA eligibility is property-specific)

If your documents are not yet organized, a local CDFI housing counselor can sit with you and help — at no cost. See Section 4 for contacts.