Home financing in Butte 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 product is a mortgage: a long-term loan secured by the property itself.

If you stop making payments, the lender can take the home back through a legal process called foreclosure, so it is important to borrow only what you can reasonably afford.

For buyers in Butte County — a mostly rural, agriculture-driven county in the northwestern corner of South Dakota — home financing often looks a little different than in a big city. The local housing market is smaller, fewer national banks have branches here, and many buyers are ranchers, contractors, or small-business owners with income that does not come in a regular paycheck.

That is completely normal, and there are lenders and programs designed for exactly this situation.

The main loan types you will encounter:

• **Conventional loans** — standard bank or credit-union mortgages. Usually require a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — backed by the federal government, allow credit scores as low as 580 and down payments as low as 3.5%. Popular with first-time buyers.

• **USDA Rural Development loans** — because much of Butte County qualifies as rural, many buyers here can access zero-down-payment USDA loans.

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

• **ITIN loans** — for buyers who do not have a Social Security number but do have an Individual Taxpayer Identification Number. A smaller set of lenders offer these.

Butte County's economy is built on ranching, agriculture, small-scale mining, tourism near the Black Hills, and independent contracting. This means many residents earn income in ways that standard loan applications were not originally designed for — seasonal work, self-employment, cash-based trades, or a mix of all three.

Here is what lenders generally look at:

**Credit score:** Most conventional loans want 620+. FHA loans accept 580+. Some CDFI and ITIN lenders will work with little or no traditional credit history and instead review utility bills, rent payment records, and bank statements.

**Income:** Lenders want to see that you can afford the monthly payment. For self-employed contractors or ranchers, expect to show two years of tax returns or profit-and-loss statements. Seasonal income is accepted when documented consistently.

**Debt-to-income ratio (DTI):** Generally, your total monthly debt payments (including the new mortgage) should be 43% or less of your gross monthly income. Some programs allow higher DTI with compensating factors.

**Down payment:** Ranges from zero (USDA, VA) to 3–3.5% (FHA, some conventional) to 10–20% for standard conventional loans. Gift funds from family members are usually allowed.

**Immigration status and ITIN:** You do not need to be a U.S. citizen to buy a home. Several lenders accept Individual Taxpayer Identification Numbers (ITINs) as the primary identifier. These loans typically require a slightly larger down payment (10–20%) and two years of ITIN tax filing history, but they are legitimate, regulated products.

**Property type:** Butte County has many rural properties, ranches, and manufactured homes. Make sure your lender is comfortable with the specific property type — not all are.

Gathering paperwork early makes the process much smoother. Here is a practical checklist for most home loan applications in Butte County:

**Identity**

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

• Social Security number OR ITIN

**Income and Employment**

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

• Last two years of W-2s or 1099s

• If self-employed: profit-and-loss statement for the current year, business bank statements

• Last 30–60 days of pay stubs (if you receive them)

• Award letters for any Social Security, pension, or disability income

**Assets**

• Last 2–3 months of bank statements (all pages)

• Documentation of any gift funds (a signed gift letter)

• Statements for retirement or investment accounts

**Property**

• Purchase agreement (once you have one)

• Property address for appraisal

• If buying rural land with a home: acreage details and any existing well/septic inspection records

**Credit and Debt**

• Lender will pull your credit report, but you can bring a recent copy

• Statements for any existing loans, car payments, or credit cards

**ITIN-specific additions**

• Two most recent years of ITIN tax returns

• ITIN assignment letter from the IRS

• Proof of residency (utility bills, lease agreement)

Tip: Keep digital copies of everything. Many local lenders now accept documents by email or secure upload portal.