Home financing in Goodhue County.

Home financing means borrowing money to purchase, build, or improve a home, then repaying that loan over time with interest. In Goodhue County, most buyers work with a local bank, credit union, CDFI (Community Development Financial Institution), or a state-assisted lender rather than a large national company.

The most common loan types you will encounter here are:

• **Conventional mortgages** — standard loans not backed by a government agency, typically requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — insured by the Federal Housing Administration, allowing down payments as low as 3.5% and more flexible credit requirements. A good entry point for first-time buyers.

• **USDA Rural Development loans** — because much of Goodhue County qualifies as rural or small-town, many properties here are eligible for USDA loans, which can offer zero down payment for income-qualifying buyers.

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

• **Minnesota Housing programs** — the state's housing finance agency layers down-payment assistance and below-market interest rates on top of FHA or conventional loans. These are delivered through local participating lenders, not directly by the state.

The key idea: you almost never deal with the federal government directly. You work with a local lender or CDFI, and they connect you to the right program.

Goodhue County's economy blends manufacturing (Red Wing Shoes is headquartered in Red Wing), healthcare, agriculture, and a growing number of self-employed tradespeople and independent contractors. This matters for financing because:

**If you are a W-2 employee**, qualification is straightforward — lenders look at your pay stubs, tax returns, and credit history.

**If you are a solo contractor or self-employed**, lenders typically want two years of tax returns showing consistent income.

If your Schedule C shows heavy deductions (common for contractors), your qualifying income may be lower than your actual earnings.

A local loan officer who understands small-business borrowers can help you frame your application correctly.

**If you do not have a Social Security Number**, you may still qualify using an ITIN (Individual Taxpayer Identification Number). Several lenders serving Goodhue County offer ITIN mortgage programs — see Section 4 for specific names.

**Income limits for state and USDA programs**: Minnesota Housing and USDA Rural Development programs have household income caps that vary by county and family size.

For Goodhue County, USDA income limits typically fall in the $110,000–$130,000 range for a family of four (confirm current figures at rd.usda.gov).

Minnesota Housing limits are similar; your participating lender will run the exact numbers.

**Geographic eligibility**: Red Wing, Cannon Falls, Zumbrota, Kenyon, and most of rural Goodhue County fall within USDA-eligible areas. Check the USDA eligibility map at eligibility.sc.egov.usda.gov before assuming you do or do not qualify.

Gathering your documents before you meet with a lender saves time and reduces stress. Here is a practical checklist for Goodhue County borrowers:

**Identity and residency**

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

• Social Security card — or your ITIN letter from the IRS if you use an ITIN

**Income — W-2 employees**

• Last two years of W-2 forms

• Last two years of federal tax returns (all pages)

• Last 30 days of pay stubs

**Income — self-employed or contractors**

• Last two years of federal tax returns, including all schedules (especially Schedule C)

• Year-to-date profit-and-loss statement (your accountant can prepare this)

• Business bank statements for the last 12 months

• Any 1099 forms received

**Assets**

• Last two to three months of bank statements (all pages, all accounts)

• Documentation of any gift funds (a signed gift letter and proof of transfer)

• Retirement or investment account statements if you are using those funds

**Property**

• Purchase agreement or listing address

• Homeowners insurance quote (required before closing)

**If you are using an ITIN**

• ITIN assignment letter from the IRS

• Two years of ITIN-filed tax returns

• Additional identity documents (some lenders ask for a second form of ID)

Tip: Do not close old bank accounts or make large unexplained deposits in the months before applying. Lenders must document every dollar in your down payment.