Home financing in Culberson County.

Home financing simply 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 eventually take the property back, so it is important to borrow only what your budget can comfortably handle.

Loans vary by type.

A conventional loan is offered by banks and credit unions without a government guarantee.

Government-backed loans — like those through the USDA Rural Development program or the Federal Housing Administration (FHA) — carry lower down payment requirements and are designed with rural and lower-income buyers in mind. Because Culberson County is a rural county, USDA loans are especially relevant here.

For home repairs and improvements, you might look at a home equity loan, a home equity line of credit (HELOC), or a rehab loan. For small investors buying a rental property, portfolio loans and small-balance commercial loans are the most common tools.

Take time to understand the difference between the interest rate and the Annual Percentage Rate (APR). The APR includes fees and gives you a more complete picture of what a loan truly costs.

Culberson County's economy is shaped by ranching, agriculture, transportation (I-10 and the Union Pacific rail corridor), the oil and gas sector in the Delaware Basin, and a growing interest in dark-sky tourism near the McDonald Observatory area. Many residents work as independent contractors, ranch hands, truck drivers, or seasonal workers — income patterns that do not always fit neatly into a traditional loan application.

Here is what lenders typically look at:

• Credit score: Conventional loans usually require a score of 620 or higher. FHA loans can go as low as 580 with a 3.5% down payment. Some CDFI and USDA programs are more flexible.

• Income: Lenders want to see stable, verifiable income. If you are self-employed or do contract work, two years of tax returns are usually required. Keep your records clean and up to date.

• Debt-to-income ratio (DTI): Most lenders want your total monthly debt payments to be no more than 43% of your gross monthly income.

• Down payment: This ranges from 0% (USDA Direct loans) to 3%–20% depending on the program.

• ITIN borrowers: If you do not have a Social Security number, you can still qualify for a home loan using your Individual Taxpayer Identification Number (ITIN). Several lenders in West Texas and Texas CDFIs offer ITIN mortgage programs — see Section 4.

Solo contractors and gig workers should focus on keeping two years of consistent tax filing history before applying. Even partial or seasonal income counts if it is documented.

Gathering your documents before you approach a lender will save you time and stress. Here is a practical checklist for most home loan applications in Texas:

**Identity & Residency**

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

- Social Security number or ITIN

- Proof of current address (utility bill or lease agreement)

**Income & Employment**

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

- Last two to three months of pay stubs (if employed)

- Profit-and-loss statement (if self-employed or contractor)

- Bank statements for the last two to three months

**Property & Assets**

- Purchase contract or property address

- Most recent mortgage statement (if refinancing)

- Documentation of any gifts used for a down payment

- Records of other assets (savings, retirement accounts)

**Credit**

- Lenders will pull your credit report, but you can check yours first for free at AnnualCreditReport.com

- If you have no credit score (common for ITIN borrowers), some lenders accept alternative credit history: on-time rent payments, utility bills, or insurance records

Organize these into a folder — paper or digital — before your first meeting with a lender. You will likely be asked for the same documents more than once; that is normal.