Home financing in Washington 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 tool is a mortgage: a loan secured by the property itself.

If you stop making payments, the lender can take the home through a process called foreclosure, so understanding your loan terms before you sign is essential.

Mortgages come in several shapes. A fixed-rate mortgage keeps the same interest rate for the life of the loan — predictable and easier to budget.

An adjustable-rate mortgage (ARM) starts at a lower rate but can change over time, which adds uncertainty.

Loan terms typically run 15 or 30 years. The longer the term, the lower the monthly payment, but the more interest you pay overall.

Beyond the purchase price, buyers in Washington County should budget for closing costs (typically 2–5% of the loan amount), property taxes, homeowners insurance, and — if your down payment is under 20% — private mortgage insurance (PMI). State and local programs can help reduce some of these upfront costs, especially for first-time buyers.

Washington County (also called South County) has a diverse economic base: coastal tourism and hospitality, healthcare anchored by South County Health, education, retail, agriculture, and a growing number of independent contractors and tradespeople. Many residents work seasonally or run small businesses with income that fluctuates month to month — patterns that traditional lenders sometimes struggle to evaluate fairly.

Typical qualification factors lenders look at include:

- Credit score (many conventional loans want 620+, but some programs go lower)

- Debt-to-income ratio (your monthly debts vs. your gross monthly income)

- Stable income history — self-employed and gig workers can qualify using two years of tax returns or bank statements

- Down payment funds (as low as 0–3.5% with certain programs)

- Legal residency or ITIN status — more on this below

Solo contractors and tradespeople are especially common in Washington County.

If you file a Schedule C, keep clean records of your net income, as lenders use that figure — not your gross receipts.

A local CDFI or credit union loan officer familiar with the regional economy can often read your file more accurately than an automated underwriting system at a national bank.

ITIN holders (people who pay taxes but do not have a Social Security number) can also qualify for mortgages through specific lenders — see the local lenders section below.

Gathering your paperwork early makes the process smoother. Most lenders in Washington County will ask for some combination of the following:

**Identity & Residency**

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

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

- Immigration documents if applicable (visa, green card, work authorization)

**Income Verification**

- Last two years of federal tax returns (W-2s or 1099s)

- If self-employed: two years of personal AND business returns, plus a year-to-date profit and loss statement

- Recent pay stubs (last 30 days) if you are a W-2 employee

- Bank statements from the last 2–3 months (all accounts)

**Assets & Debts**

- Bank and investment account statements

- Documentation of any gift funds for a down payment (a gift letter is usually required)

- A list of existing debts: car loans, student loans, credit cards

**Property**

- Signed purchase and sale agreement (once you have one)

- Property address for the appraisal

If your income is irregular or you are self-employed, a bank-statement loan or a community lender who manually underwrites files can be more forgiving. Bring 12–24 months of bank statements showing consistent deposits.