Home financing in Roscommon County.

Home financing is simply borrowing money to buy or improve a home, and then repaying it — usually over 15 to 30 years — with interest.

The most common tool is a mortgage: a loan secured by the property itself.

If you stop making payments, the lender can take the property back through a legal process called foreclosure, which is why it's important to borrow only what you can realistically afford.

There are several types of home loans you may encounter:

• **Conventional loans** — Offered by banks and credit unions, not backed by the government. Usually require stronger credit and a down payment of 3–20%.

• **FHA loans** — Backed by the Federal Housing Administration. Allow lower credit scores (often 580+) and down payments as low as 3.5%. A popular entry point for first-time buyers.

• **USDA Rural Development loans** — Because Roscommon County is classified as a rural area, many properties here qualify for USDA loans, which can offer zero down payment for eligible buyers.

• **VA loans** — For veterans and active-duty service members. No down payment required and no private mortgage insurance.

• **ITIN loans** — Designed for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number. These are offered by select lenders and credit unions.

Beyond purchase loans, home financing also includes home equity lines of credit (HELOCs), renovation loans, and bridge loans for investors. This guide focuses primarily on purchase financing for primary residences and small investment properties.

Roscommon County is a small, rural county in Northern Michigan — home to Houghton Lake, Higgins Lake, and a largely seasonal economy. Many residents work in tourism, hospitality, trades, retail, or are self-employed. These facts matter a lot when applying for a home loan.

**Income considerations:**

Because the local economy is seasonal, many borrowers have variable income — busy in summer, slower in winter. Lenders who serve rural Michigan understand this. You may need to show a 12–24 month average of your income rather than a single pay stub. Self-employed contractors typically need two years of tax returns.

**Credit score:**

Conventional loans generally want a score of 620 or higher. FHA loans go down to 580 (and sometimes 500 with a larger down payment). Some credit unions and CDFIs in Northern Michigan will work with buyers who have thin or imperfect credit histories.

**Down payment:**

USDA Rural Development loans — available in most of Roscommon County — require no down payment for qualifying borrowers. FHA requires 3.5% down. Michigan State Housing Development Authority (MSHDA) programs can provide down payment assistance to eligible buyers.

**ITIN borrowers:**

If you don't have a Social Security number but file taxes with an ITIN, you are not automatically disqualified.

Several lenders and credit unions in Michigan offer ITIN mortgage products.

You'll typically need two years of tax returns filed with your ITIN, consistent employment or self-employment history, and references such as utility payment records or rent history.

**Property type:**

Roscommon County has many seasonal cabins, waterfront properties, and older rural homes. Not all of these qualify for every loan type — for example, FHA and USDA have minimum property condition standards. A local lender who knows Houghton Lake or Grayling-area properties can tell you quickly whether a specific home will qualify.

Gathering your documents early saves a lot of stress. Here is what most lenders will ask for, though exact requirements vary:

**Identity and residency:**

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

- Social Security number OR ITIN (for ITIN loans)

- Immigration documents if applicable (some lenders require these, others do not)

**Income and employment:**

- Last two years of federal tax returns (personal and business if self-employed)

- W-2s or 1099s for the last two years

- Recent pay stubs (last 30 days) if you are an employee

- Profit and loss statement if self-employed

- Award letters if you receive Social Security, disability, or pension income

**Assets:**

- Last two to three months of bank statements

- Statements for any retirement accounts or investment accounts

- Documentation of any gift funds being used for a down payment

**Property:**

- Signed purchase agreement (once you have one)

- Property address for the lender to order an appraisal

**Credit:**

- The lender will pull your credit report directly. You do not need to provide this, but you should review your credit report at AnnualCreditReport.com before applying so there are no surprises.

**Tip for seasonal workers:** Keep a folder with your last two seasons of pay stubs and any employer letters confirming seasonal rehire. Lenders in Northern Michigan see seasonal income regularly — but you need to document it clearly.