Home financing in Walworth County.

Home financing means borrowing money to buy, build, or improve a home, then repaying that loan over time — usually with interest. The most common type is a mortgage, where the home itself serves as collateral for the loan.

There are several kinds of home loans available in South Dakota:

• **Conventional loans** — offered by banks and credit unions, often requiring a credit score of 620 or higher and a down payment of 3–20%.

• **FHA loans** — backed by the federal government, with lower down payment requirements (as low as 3.5%) and more flexible credit standards. These are often a strong option for first-time buyers.

• **USDA Rural Development loans** — because most of Walworth County qualifies as rural, many buyers here can access zero-down-payment loans through this program.

• **VA loans** — available to eligible veterans and active-duty service members, with no down payment required.

• **ITIN loans** — offered by select lenders to borrowers who do not have a Social Security number but do have an Individual Taxpayer Identification Number (ITIN). These are real, legitimate loan products.

• **Construction and rehab loans** — for buyers who want to build new or improve an existing property.

Walworth County is a rural, thinly populated county anchored by Mobridge, a small city along the Missouri River.

The local economy includes agriculture, ranching, healthcare, small retail, and tourism related to the Missouri River and Standing Rock area.

Median home prices here are significantly below the national average, which means financing amounts are often more manageable than in larger markets.

Lenders look at a few key factors when deciding whether to approve a home loan:

**Credit score:** Most conventional loans want a score of 620+. FHA loans can work with scores as low as 580 (or even 500 with a larger down payment). Some ITIN and CDFI lenders look at your full financial picture rather than just a credit score number.

**Income:** Lenders want to see that your monthly debt payments (including your new mortgage) will not exceed roughly 43–50% of your gross monthly income. For self-employed contractors, ranchers, or seasonal workers common in Walworth County, lenders will typically average your income over two years using tax returns.

**Down payment:** This depends on the loan type. USDA Rural Development loans require no down payment for eligible buyers and properties — and most of Walworth County is eligible. FHA requires 3.5%. Conventional loans typically start at 3–5%.

**Employment history:** Lenders generally want two years of consistent employment or self-employment. If you work in agriculture, ranching, or as a seasonal contractor, document your income carefully.

**ITIN borrowers:** If you do not have a Social Security number, you can still qualify for a home loan using your ITIN. You will need a stronger down payment (often 10–20%), two years of tax returns filed with your ITIN, and bank statements. Some local and regional lenders in South Dakota have experience with ITIN borrowers — see the lender section below.

**Tribal land and trust land considerations:** Some land near Walworth County borders touches Standing Rock Sioux Tribe territory. Purchasing homes on trust land or allotted land involves additional legal steps and specialized lenders. Native CDFI lenders and the BIA's Housing Improvement Program can help navigate this.

Gathering your paperwork before you start shopping for a lender saves time and reduces stress. Here is what most lenders will ask for:

**For all borrowers:**

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

• Social Security number OR ITIN

• Two years of federal tax returns (signed)

• Two most recent W-2s or 1099s

• Two to three months of recent bank statements

• Proof of any other income (rental income, child support, Social Security)

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

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

• Two years of personal AND business tax returns

• A current profit-and-loss statement (your accountant or bookkeeper can prepare this)

• Business bank statements (2–3 months)

• Proof that your business has been operating for at least two years

**If you are using an ITIN:**

• ITIN letter from the IRS

• Two years of tax returns filed under your ITIN

• 12 months of bank statements

• Proof of residency (utility bills, lease agreements)

**For the property:**

• Purchase agreement (once you have one)

• Property address so the lender can order an appraisal

Tip: Start a folder — physical or digital — and put copies of these documents in it now, before you even talk to a lender. It will make the process much smoother.