Home financing in Koochiching County.

Koochiching County sits in far northern Minnesota, anchored by the city of International Falls.

The local economy is shaped by forestry, paper and wood products manufacturing, cross-border trade with Canada, and a growing outdoor recreation sector.

Seasonal and hourly employment is common, and many residents are self-employed in trades, tourism, or small contracting businesses.

Lenders look at a few core factors when deciding whether to approve a home loan:

• **Income stability** — You do not need to have a salaried job, but you do need to show consistent income. Self-employed applicants typically need two years of tax returns. Seasonal workers may need a longer employment history to document average annual earnings.

• **Credit score** — Conventional loans generally want a score of 620 or higher. FHA loans accept scores as low as 580 with 3.5% down, or even 500 with 10% down. USDA and VA loans have their own guidelines. ITIN lenders set their own minimums.

• **Debt-to-income ratio (DTI)** — Most programs want your total monthly debt payments (including the new mortgage) to be no more than 43–45% of your gross monthly income.

• **Down payment and reserves** — USDA Rural Development loans often require no down payment for income-eligible buyers in qualifying rural areas. Other programs require between 3% and 20%. Having a small savings cushion after closing also helps.

• **Property eligibility** — In Koochiching County, USDA loans are available in most areas. The USDA eligibility map should be confirmed at application time, as boundaries can shift.

If your situation does not fit a standard lender's checklist — for example, if you are newer to credit, have a mixed employment history, or use an ITIN — local CDFIs and specialized lenders may still be able to help.

Gathering your documents early saves time and reduces stress. Here is what most lenders will ask for:

**Identity and residency:**

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

• Social Security number OR Individual Taxpayer Identification Number (ITIN)

• For non-citizens: visa, green card, or work authorization documents

**Income and employment:**

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

• W-2s or 1099s for the past two years

• Recent pay stubs covering 30 days (if employed by someone else)

• Profit-and-loss statement for the current year (if self-employed)

• Bank statements for the last two to three months

**Assets and debts:**

• Bank and investment account statements

• Documentation of any gift funds (a gift letter may be required)

• Current loan statements for car loans, student loans, or other debts

**Property:**

• Signed purchase agreement (once you are under contract)

• Property address for USDA rural eligibility check

**Credit:**

• Lenders pull your credit report themselves, but it helps to review yours in advance at AnnualCreditReport.com — free and legitimate.

If you are missing some of these documents or unsure how to obtain them, a HUD-approved housing counselor can sit with you and help organize what you have. This service is free or low-cost.