Home financing in Strafford County.

Home financing — most commonly a mortgage — is a loan you use to buy a home, with the home itself serving as collateral. You borrow a set amount from a lender, then repay it over time (often 15 or 30 years) with interest. Each monthly payment covers part of the loan principal and part of the interest.

There are several types of home loans:

• **Conventional loans** — offered by banks, credit unions, and mortgage companies. They typically require a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — backed by the Federal Housing Administration. They allow down payments as low as 3.5% and accept credit scores starting around 580. They also permit ITIN borrowers at many lenders.

• **USDA loans** — for homes in eligible rural or suburban areas. Parts of Strafford County, including communities outside Dover and Rochester, may qualify.

• **VA loans** — for eligible veterans and active-duty military. No down payment required.

• **Portfolio loans** — kept in-house by the lender, giving them flexibility to work with self-employed borrowers or those with non-traditional income.

For small real-estate investors buying 1–4 unit properties, conventional and portfolio loans are the most common paths. Understanding what type of loan fits your situation is the first step — a local housing counselor or CDFI can help you figure that out at no cost.

Strafford County is home to a diverse and growing population anchored by cities like Dover, Rochester, and Somersworth, as well as smaller towns such as Durham, Farmington, and Barrington. The local economy includes healthcare, manufacturing, retail, higher education (University of New Hampshire is in Durham), and a strong trades sector.

Many residents who wonder whether they qualify for home financing actually do — here is how local factors play into eligibility:

• **Self-employed contractors and tradespeople** — If you work independently in construction, landscaping, or a skilled trade, you can qualify. Lenders will look at two years of tax returns and profit-and-loss statements rather than pay stubs.

• **ITIN holders** — Several lenders and credit unions serving Strafford County offer mortgage products to borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). You will need 12–24 months of credit history, proof of income, and a larger down payment (typically 10–20%).

• **Moderate-income households** — Strafford County's median household income is lower than Rockingham or Hillsborough counties, which means more households qualify for income-targeted programs offered by the New Hampshire Housing Finance Authority (NHHFA).

• **Small investors** — If you are looking to buy a duplex or small rental in Rochester or Dover, lenders will look at your credit, cash reserves, and sometimes projected rental income. Two years of landlord experience helps but is not always required.

Do not assume you do not qualify before speaking with a local lender or nonprofit housing counselor. The picture is often better than people expect.

Gathering your documents early saves time and stress. Every lender has slightly different requirements, but the following list covers the most common items:

**For all borrowers:**

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

• ITIN letter or Social Security card

• Two years of federal tax returns (all pages and schedules)

• Two most recent W-2s or 1099s

• Two to three months of bank statements (all accounts)

• Most recent pay stubs (if employed by someone else)

• Proof of current address (utility bill or lease)

• Landlord contact or 12-month rent payment history (if you rent)

**For self-employed borrowers and solo contractors:**

• Two years of personal and business tax returns

• Year-to-date profit-and-loss statement (a simple spreadsheet is fine)

• Business license or registration (if applicable)

• 12 months of business bank statements

**For ITIN borrowers:**

• ITIN assignment letter from the IRS

• 12–24 months of credit history (secured cards, credit-builder loans, or rent reporting count)

• Additional bank statements showing savings pattern

**For small investors (1–4 units):**

• Current leases for any occupied units

• Six months of cash reserves after closing

• Existing mortgage or rental property documentation (if applicable)

Organize these into a folder — digital or paper — so you can share them quickly when a lender asks.