Home financing in Waseca County.

Home financing means borrowing money to purchase a home, then repaying that loan — called a mortgage — over time, usually 15 to 30 years.

Each monthly payment covers part of the principal (the amount you borrowed) and interest (the cost of borrowing).

Some loans also roll in property taxes and homeowner's insurance through an escrow account, so you're paying those costs a little at a time rather than in one lump sum each year.

There are several common loan types available to buyers in Waseca County:

• **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%. A good starting point for first-time buyers.

• **USDA Rural Development loans** — Much of Waseca County qualifies as rural under USDA definitions, making zero-down-payment loans available to eligible buyers. Income limits apply.

• **VA loans** — Available to eligible veterans, active-duty service members, and surviving spouses. No down payment required and no private mortgage insurance.

• **ITIN loans** — For buyers who don't have a Social Security Number, some local lenders accept an Individual Taxpayer Identification Number (ITIN) instead. See Section 4 for local sources.

No single loan type is best for everyone. The right fit depends on your income, credit history, immigration status, and the property you're buying.

Waseca County sits in south-central Minnesota, with an economy rooted in agriculture, food processing, and small manufacturing. The county seat is Waseca, and smaller communities like New Richland, Janesville, and Waldorf are also home to buyers looking to plant roots.

This economic backdrop matters for financing:

• **Agricultural and seasonal workers** — Income from farming, crop work, or food processing (such as workers at regional facilities) can be documented and used for loan qualification, though lenders may require two years of tax returns to average variable income.

• **Solo contractors and self-employed buyers** — Common in construction, landscaping, and trades work across Waseca County. Lenders will look at your Schedule C, profit-and-loss statements, and two years of tax returns rather than pay stubs.

• **Spanish-speaking households** — A growing share of Waseca County's workforce speaks Spanish as a primary language. Several of the lenders and organizations listed in Section 4 have bilingual staff or can connect you with a housing counselor who speaks Spanish.

• **Buyers without a Social Security Number** — ITIN-based mortgages are available through select lenders. You'll need a solid two-year history of tax filing with your ITIN and verifiable income.

• **Rural property buyers** — Because much of Waseca County is designated rural by the USDA, many buyers qualify for USDA Rural Development guaranteed loans, which require no down payment and carry competitive interest rates.

Don't assume you don't qualify before speaking with a local housing counselor. Many people in Waseca County have more options than they realize.

Gathering your paperwork before you apply saves time and reduces stress. Most lenders in Waseca County — whether a bank, credit union, or CDFI — will ask for some version of the following:

**Identity and Residency**

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

• Social Security Number or ITIN

• Proof of residency or visa status if applicable

**Income**

• Last two years of federal tax returns (W-2s and/or 1040s)

• Last two to three months of pay stubs (for salaried employees)

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

• Award letters for Social Security, disability, or other benefit income

• Documentation of any agricultural income or contract labor

**Assets**

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

• Documentation of any gift funds toward your down payment (a gift letter from the donor)

• Retirement or investment account statements if applicable

**Credit**

• Lenders will pull your credit report — you don't need to bring this, but know your score ahead of time by checking at AnnualCreditReport.com for free

• Explanation letters for any past late payments, collections, or gaps in credit history

**Property**

• Once you're under contract, you'll also need the purchase agreement and any HOA documents if applicable

If you have been filing taxes using an ITIN, bring copies of the last two years of returns along with proof of ITIN issuance. A housing counselor can help you organize these documents before you approach a lender.