Home financing in Somerset County.

Home financing means borrowing money to buy, build, or improve a home — and agreeing to pay it back over time, usually with interest. The most common product is a mortgage: the home itself serves as collateral, meaning the lender has a legal claim on it until you finish paying.

There are several types of home loans worth knowing about:

• **Conventional loans** — Offered by banks and credit unions, typically requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — Backed by the federal government, 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 much of Somerset County qualifies as rural, many buyers here can access USDA loans, which offer zero down payment for eligible properties and incomes.

• **ITIN-based loans** — Some lenders and CDFIs offer mortgages to borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). These are real, legitimate products.

• **Maryland state programs** — The Maryland Mortgage Program (MMP) offers down payment assistance and competitive rates through approved local lenders.

No matter which product you use, the key numbers to understand are: the interest rate, the loan term (usually 15 or 30 years), the monthly payment, and the total cost over the life of the loan.

Somerset County's economy is built around agriculture, seafood harvesting (the Chesapeake Bay crab and oyster industries), small retail, healthcare, and the University of Maryland Eastern Shore (UMES). Many residents are self-employed — crabbers, farmers, landscapers, and construction contractors — which means traditional income verification can be a challenge.

**Good news:** Lenders who work with rural and agricultural communities are accustomed to irregular income. Programs like USDA Rural Development are specifically designed for areas like Somerset County.

**General qualification factors for most home loans:**

- Stable income for at least two years (this can include self-employment income shown on tax returns)

- A debt-to-income (DTI) ratio typically below 43–45%

- Sufficient credit history (some ITIN lenders and CDFIs work with thin or non-traditional credit)

- A down payment (which can sometimes be covered by grants or assistance programs)

**For self-employed borrowers:** Two years of filed tax returns — including Schedule C — are usually required. Some lenders will also accept bank statements as proof of income.

**For ITIN holders:** You do not need a Social Security Number to qualify with certain lenders. You will need a valid ITIN, two years of tax filing history, and steady income documentation.

**For veterans:** VA loans are available with no down payment. The Maryland Department of Veterans Affairs can connect you with local resources.

Somerset County is one of Maryland's lower-income counties. That actually works in your favor: you are more likely to qualify for income-based assistance programs at both the state and federal level.

Gathering your paperwork early saves time and stress. Here is what most lenders — conventional or ITIN-friendly — will ask for:

**Identity & Residency**

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

- Social Security Number or ITIN

- For ITIN applicants: IRS ITIN letter or most recent tax return showing the ITIN

**Income**

- Last two years of federal tax returns (W-2s and/or 1099s)

- Last two to three months of pay stubs (if employed)

- Last two years of business tax returns and a current profit-and-loss statement (if self-employed)

- Last two to three months of bank statements

**Assets & Down Payment**

- Bank statements showing funds for the down payment and closing costs

- Gift letters if any portion of the down payment is a gift from family

**Property**

- Purchase contract (once you have one)

- Recent property tax records (if refinancing or buying from a relative)

**Credit**

- The lender will pull your credit report — you do not need to bring this

- If you have thin credit, bring records of on-time rent payments, utility bills, or remittances

Organize these documents in a folder — physical or digital — before your first lender meeting. It shows preparedness and speeds up approval.