Home financing in Davison County.

Home financing is a loan — called a mortgage — that lets you purchase or refinance a property without paying the full price upfront. You agree to repay the loan over time, usually 15 to 30 years, plus interest. The home itself serves as collateral, meaning the lender can take it back if you stop making payments.

There are several types of home loans commonly available in Davison County:

- **Conventional loans**: Offered by banks and credit unions. Typically 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%. A common starting point for first-time buyers.

- **USDA Rural Development loans**: Because much of South Dakota — including parts of Davison County outside Mitchell's city limits — is considered rural, some buyers may qualify for zero-down USDA loans.

- **VA loans**: For veterans and active-duty military. Zero down payment, no private mortgage insurance (PMI).

- **ITIN loans**: For buyers who don't have a Social Security Number but do have an Individual Taxpayer Identification Number. A small number of community lenders and CDFIs offer these.

- **Hard-money or portfolio loans**: Short-term loans used by investors, typically with higher rates. Use with caution.

Remember: the loan type is just a tool. What matters most is finding a lender who understands your situation and works transparently with you.

Davison County is anchored by Mitchell, a city of roughly 15,000 people and the county seat. The local economy is built around agriculture, healthcare (Sanford Mitchell Medical Center is a major employer), retail trade, and small contracting businesses. Many residents are self-employed — farmers, independent contractors, subcontractors in construction — which means their income looks different on paper than a traditional W-2 employee.

**You may qualify even if:**

- You are self-employed and file a Schedule C or have variable income

- You have a thin credit file (few accounts, but no negative history)

- You use an ITIN instead of a Social Security Number

- You've had a past financial hardship but have shown recent stability

- You're a first-time buyer with a modest down payment

**Typical qualification factors lenders look at:**

- Debt-to-income ratio (DTI): Most lenders want your total monthly debts to be below 43% of gross income

- Credit score: Ranges vary by loan type (see above)

- Employment or income history: Usually 2 years, but community lenders may be more flexible

- Down payment: Anywhere from 0% (USDA/VA) to 20% (to avoid PMI)

- Property condition: Homes must meet minimum standards for most loan types

Because Mitchell sits in a regional agricultural hub, lenders here are generally familiar with seasonal income, farm-related assets, and self-employment situations. Don't assume you won't qualify — ask.

Gathering your paperwork ahead of time makes the process faster and less stressful. Here is a general checklist. Your specific lender may ask for more or less depending on the loan type.

**Identity and Residency**

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

- ITIN letter (if applicable) or Social Security card

- Proof of residency (utility bill, lease, or other document with your address)

**Income Documentation**

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

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

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

- Last 2–3 months of personal bank statements

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

**Assets and Liabilities**

- Bank and investment account statements

- Documentation of any gift funds used for a down payment (gift letter)

- List of current debts: car loans, student loans, credit cards

**Property**

- Purchase agreement (once you have an accepted offer)

- Property address for the lender's appraisal order

**Tip for ITIN borrowers**: Bring your ITIN assignment letter from the IRS, 2 years of tax returns filed with the ITIN, and 12 months of bank statements. Some lenders will also want a credit reference letter from a utility company or landlord if your formal credit history is limited.