Home financing in Scotland County.

Home financing means borrowing money to buy, build, or improve a home — and agreeing to pay it back 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 has the legal right to take the home back through a process called foreclosure. That is why it is important to borrow only what you can comfortably repay.

There are several types of home loans you might encounter in Scotland County:

• **Conventional loans** — offered by banks and credit unions, not backed by the government. Usually require a higher credit score and a down payment of at least 3–20%.

• **FHA loans** — backed by the Federal Housing Administration, with lower down payment requirements (as low as 3.5%). Good for buyers with limited savings or lower credit scores.

• **USDA Rural Development loans** — Scotland County is largely rural and many areas qualify for USDA loans, which can offer zero down payment for eligible buyers.

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

• **ITIN loans** — for buyers who do not have a Social Security number but do have an Individual Taxpayer Identification Number. Offered by select community lenders.

Federal programs set the rules, but local lenders are the ones who actually process your application and know your community.

Scotland County is a small, rural county in the Sandhills region of North Carolina, with Laurinburg as its county seat.

The local economy includes agriculture, manufacturing, healthcare, retail, and service trades.

Many residents work in construction, landscaping, food service, or run small businesses — including solo contractors who are paid by 1099 rather than W-2.

**If you are a W-2 employee:** Most lenders will want to see two years of steady employment in the same field. Your qualifying income is typically your gross (before-tax) salary.

**If you are self-employed or a 1099 contractor:** Lenders typically average your net income from the last two years of tax returns. If you take a lot of deductions, your qualifying income may be lower than your actual earnings — something worth discussing with a local lender before you apply.

**If you use an ITIN:** You do not need a Social Security number to buy a home. Some local credit unions and community lenders in the region offer ITIN mortgage programs. You will need a solid rental history, a down payment (often 10–20%), and proof of income.

**General eligibility factors for most loans:**

- Credit score (FHA accepts scores as low as 580 with 3.5% down; USDA and conventional loans typically want 620+)

- Debt-to-income ratio (your monthly debts should generally be below 43% of your gross monthly income)

- Stable income history — at least two years in the same line of work

- Down payment and closing cost funds

Scotland County's median home prices are well below the state average, which means the loan amounts needed are often more manageable here than in urban counties.

Getting organized before you talk to a lender saves a lot of time and stress. Here is a general list of what most lenders will ask for:

**For all borrowers:**

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

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

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

- Last 2 years of W-2s or 1099s

- Last 2–3 months of pay stubs (if employed)

- Last 2–3 months of bank statements (all pages, all accounts)

- Proof of any other income (rental income, child support, Social Security, etc.)

- Landlord contact information or 12 months of rental payment history

**If self-employed or a sole contractor:**

- Last 2 years of business tax returns (Schedule C or partnership returns)

- Year-to-date profit and loss statement

- Business bank statements (2–3 months)

- Business license or proof of business existence

**For ITIN borrowers:**

- ITIN card or IRS letter assigning your ITIN

- 12–24 months of rental payment history (letters from landlord or bank records)

- Additional documentation of consistent income

Start gathering these now, even if you are months away from buying. Lenders are much more likely to work creatively with you when your paperwork is clean and complete.