Home financing in Fillmore County.

Home financing simply means borrowing money to buy, build, or improve a home — and then repaying it over time, usually with interest. The most common form is a mortgage: a loan secured by the property itself. If you stop making payments, the lender can eventually reclaim the property, so it is important to borrow an amount you can realistically afford.

There are several kinds of home loans available in Fillmore County:

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

• **FHA loans** — backed by the federal government, accepting lower credit scores and down payments as low as 3.5%. These are a common starting point for first-time buyers.

• **USDA Rural Development loans** — because most of Fillmore County is designated rural, many properties here qualify for USDA loans, which can offer zero down payment and competitive rates.

• **VA loans** — for eligible veterans and active-duty military.

• **ITIN loans** — for buyers who have an Individual Taxpayer Identification Number instead of a Social Security number. Several local and state-level lenders offer these.

• **Rehab and renovation loans** — for buying a home that needs repairs, or improving a home you already own.

Remember: a lower interest rate is not the only thing that matters. Fees, loan terms, and how well a lender communicates with you are just as important.

Fillmore County is a largely rural, agricultural county in southeastern Minnesota, with Preston as the county seat. Communities like Spring Valley, Harmony, Lanesboro, and Rushford make up its small-town fabric. Agriculture — dairy farming in particular — is the economic backbone, alongside small manufacturing, healthcare, and a growing agritourism sector.

This regional economy directly shapes who qualifies for home financing here:

• **Farmers and agricultural workers** often have irregular or seasonal income. Many lenders in this region are experienced with farm income documentation and will review averaged multi-year income rather than just last year's tax return.

• **Self-employed contractors and tradespeople** are common in Fillmore County. Lenders will typically look at two years of tax returns to average your income, so consistent self-employment history matters more than a single strong year.

• **ITIN borrowers** — including members of the growing Latino workforce in the dairy and agricultural industries — can access home loans through ITIN-friendly lenders. Having an ITIN, a work history, and consistent bill-payment history (even without a formal credit score) is enough to get started at some institutions.

• **Low-to-moderate income buyers** may qualify for down payment assistance and subsidized loan programs through state and regional housing organizations.

• **Small real-estate investors** buying 1–4 unit properties can often use conventional financing, though rental income documentation requirements are stricter.

Do not assume you do not qualify before talking to a local lender or housing counselor. Eligibility rules vary significantly from one institution to another.

Gathering your paperwork before you meet with a lender saves time and reduces stress. The exact list depends on your situation, but here is what most home loan applications in Fillmore County will require:

**For everyone:**

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

- ITIN or Social Security number

- Proof of address (utility bill, lease agreement)

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

- Last 2 months of bank statements (all pages)

- Proof of any other assets (retirement accounts, land, vehicles)

**If you are employed by someone else:**

- Last 2 pay stubs

- W-2 forms for the past 2 years

- Contact information for your employer

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

- 2 years of business tax returns (Schedule C or Form 1065/1120S)

- A year-to-date profit and loss statement

- Business bank statements

- Any licenses or contracts that show your work is ongoing

**If you have agricultural income:**

- Farm income schedules from your tax returns

- FSA farm records or lease agreements if applicable

- Documentation of any USDA program payments you receive

**For ITIN borrowers:**

- Your ITIN card or letter from the IRS

- 12–24 months of on-time payment history for rent, utilities, phone, or remittances (bank records or receipts work)

- Some lenders will accept a foreign credit report

Organize these in a folder — digital or paper — before your first meeting. You do not need everything to be perfect. A housing counselor can help you fill in any gaps.