HOME FINANCING · TX

Home Financing Guide for El Paso County, Texas

This guide helps solo contractors, first-time buyers, and small investors in El Paso County, Texas understand their home financing options — from conventional mortgages to ITIN loans. It highlights the local lenders, credit unions, and nonprofit housing organizations that actually serve this community. Federal programs like FHA and VA are useful tools, but the real access point is your local intermediary. Take your time, compare your options, and never feel pressured to sign anything you don't fully understand.

§ 01 — What it is

What Is Home Financing?

Home financing means borrowing money to buy, build, or improve a home — and agreeing to repay that amount, plus interest, over time. In El Paso County, this most commonly looks like a mortgage loan, where the home itself serves as collateral. There are several types of mortgage products available locally: • **Conventional loans** — offered by banks and credit unions, typically requiring a credit score of 620 or higher and a down payment of 3–20%. • **FHA loans** — insured by the Federal Housing Administration, these accept lower credit scores (as low as 580) and down payments as low as 3.5%. They are popular with first-time buyers in El Paso. • **VA loans** — available to eligible veterans and active-duty military, with no down payment required. El Paso's large military population near Fort Bliss makes this one of the most commonly used loan types in the county. • **USDA loans** — for homes in qualifying rural and semi-rural areas. Some parts of El Paso County's outskirts may qualify. • **ITIN loans** — designed for borrowers who do not have a Social Security Number but have an Individual Taxpayer Identification Number (ITIN). Several local lenders in El Paso offer these products specifically for immigrant homebuyers. Understanding which product fits your situation is the first step — and a local housing counselor can help you figure that out for free.

§ 02 — Who qualifies

Who Qualifies? El Paso County's Local Context

El Paso County has a unique economic and demographic profile that shapes who can access home financing and how. Here's what matters locally: **Workforce and income:** El Paso's economy is anchored by Fort Bliss and the U.S. Army, retail and healthcare sectors, border trade, and a growing manufacturing base. Many residents work in the informal or gig economy — including solo contractors in construction, landscaping, and home repair — which means traditional W-2 income documentation is not always available. Lenders who understand self-employment and 1099 income are essential here. **Mixed immigration status:** El Paso has a significant population of lawful permanent residents, visa holders, and DACA recipients. Several local lenders and CDFIs offer ITIN mortgage programs that do not require a Social Security Number — only proof of identity, tax history (usually two years of ITIN-filed returns), and stable income. **Binational households:** Some El Paso buyers earn income on both sides of the U.S.-Mexico border. While cross-border income is complex to document, it is not automatically disqualifying — the right lender will know how to work with it. **General qualification signals lenders look for:** - Steady income (W-2, self-employment, ITIN returns, or a combination) - A debt-to-income (DTI) ratio generally below 43–50% - A credit history (traditional score or alternative credit for ITIN borrowers) - Some savings for a down payment and closing costs - At least two years of employment or self-employment history If you don't check every box today, a HUD-approved housing counselor can build a realistic roadmap with you — at no charge.

§ 03 — What you need

Documents You Will Typically Need

Gathering documents before you meet a lender saves time and reduces stress. Requirements vary by loan type and lender, but here is a solid starting list for El Paso County borrowers: **Identity and residency:** - Government-issued photo ID (passport, consular ID / matrícula consular, or driver's license) - Social Security Number or ITIN (Individual Taxpayer Identification Number) - Immigration documents if applicable (green card, visa, Employment Authorization Document) **Income documentation:** - Last two years of federal tax returns (1040s), including all schedules - Last two years of W-2s or 1099s - If self-employed: profit and loss statement, business bank statements (12–24 months) - Recent pay stubs (last 30 days) if you are a W-2 employee - Award letters for Social Security, disability, or retirement income **Assets and savings:** - Last two to three months of bank statements (all accounts) - Documentation of any gift funds (a gift letter from the donor) **Credit and debt:** - Authorization for the lender to pull your credit report - Statements for any existing loans, credit cards, or child support **Property:** - Purchase agreement or address of the home you want to buy - Homeowners insurance quote (required before closing) For ITIN borrowers, expect to provide at least two years of ITIN-filed tax returns and 12–24 months of bank statements. Some lenders will also accept alternative credit references like utility payments and rent history.

§ 04 — Where to start in El Paso County

Local Lenders, CDFIs, Credit Unions, and ITIN-Friendly Resources in El Paso County

This is the most important section. Federal loan programs (FHA, VA, USDA) are the backing — but you access them through a local lender or organization. Here are institutions that actually serve El Paso County residents: **Credit Unions (member-owned, often lower fees):** - **GECU (Government Employees Credit Union)** — One of the largest credit unions in Texas and deeply rooted in El Paso. Offers conventional and FHA mortgage products, financial counseling, and has a strong presence serving lower- and middle-income El Pasoans. gecu.com - **El Paso Area Teachers Federal Credit Union (EPAFCU)** — Serves educators and community members; offers mortgage products with personalized service. - **Fort Bliss Federal Credit Union** — Serves military families and Department of Defense employees; VA loan specialists on staff. - **Horizons North Credit Union** — Serves El Paso County with consumer lending and mortgage products. **ITIN-Friendly and Immigrant Homebuyer Lenders:** - **Generations Federal Credit Union** (San Antonio, serves TX statewide) — One of the most accessible ITIN mortgage lenders in Texas; works with El Paso residents remotely. - **Self-Help Federal Credit Union** (national CDFI) — Offers ITIN mortgage products and is HUD-approved; serves underbanked communities across Texas. - **Local community banks** such as **Surety Bank** and select branches of **International Bank of Commerce (IBC Bank)** — IBC Bank has deep roots in the Texas-Mexico border economy and has offered mortgage products to ITIN holders and binational clients. **Nonprofit Housing Organizations and CDFIs:** - **Rio Grande Community Development Corporation (Rio Grande CDC)** — El Paso-based CDFI that provides homebuyer education, down payment assistance, and affordable mortgage products for low- to moderate-income families. A cornerstone local resource. - **El Paso Affordable Housing, Inc.** — Works with income-qualified buyers and can connect residents to subsidy and assistance programs. - **NeighborWorks America affiliated organizations** — NeighborWorks has a network presence in Texas and provides HUD-approved counseling; ask Rio Grande CDC if they are affiliated. **HUD-Approved Housing Counseling:** - **Consumer Credit Counseling Service of Greater Dallas (serves El Paso)** — Free and low-cost HUD-approved counseling, including pre-purchase education required for many down payment assistance programs. - **Catholic Charities of El Paso** — Offers financial and housing counseling to community members regardless of religion or immigration status. **SBA and Business-Linked Resources (for investor-buyers):** - **SBA El Paso District Office** — Located in El Paso; primarily for business financing, but relevant for mixed-use properties or if you are a solo contractor seeking to stabilize your income before applying for a mortgage. Call: (915) 834-4600. **Down Payment Assistance Programs:** - **Texas State Affordable Housing Corporation (TSAHC)** — Offers the *Home Sweet Texas* and *Homes for Texas Heroes* programs, providing down payment grants of up to 5% to income-qualifying buyers. Available through participating lenders in El Paso. - **Texas Department of Housing and Community Affairs (TDHCA)** — *My First Texas Home* program offers below-market interest rates and down payment assistance for first-time buyers. Accessible through local participating lenders. - **City of El Paso's Housing and Community Development Department** — Occasionally administers local down payment assistance grants funded by federal CDBG (Community Development Block Grant) dollars. Check with the city directly for current availability. Origin Capital is a directory — not a lender. The organizations above are listed because they are known to serve El Paso County residents. Always verify current programs directly with each organization.

§ 05 — What to avoid

Texas-Specific Regulatory Notes

Texas has some of the most borrower-protective home equity laws in the country — but they come with specific rules you need to understand before you sign anything. **Texas Home Equity Rules (Article XVI, Section 50 of the Texas Constitution):** - You can only have one home equity loan at a time on your primary residence. - You cannot borrow more than 80% of your home's appraised value combined across all loans (including your first mortgage). This is called the 80% LTV rule. - You must wait 12 days after applying before a home equity loan can close — this is a mandatory cooling-off period. - You have a three-day right of rescission: after signing, you have three business days to cancel a home equity loan on your primary residence without penalty. - Closing costs on a home equity loan are capped at 2% of the loan amount (with some exceptions). **Homestead Protections:** Texas has strong homestead protections. Your primary residence is largely protected from forced sale by most creditors (with exceptions for mortgage debt, property taxes, and HOA liens). This makes homeownership in Texas an especially powerful asset-building tool. **Property Taxes:** El Paso County property taxes are assessed by the El Paso Central Appraisal District (EPCAD). Texas has no state income tax, but property taxes are relatively high compared to the national average. Factor this into your monthly payment estimate — your lender will include it in your escrow calculation. **Homestead Exemption:** Once you own and occupy your primary home, apply immediately for the Texas General Homestead Exemption with EPCAD. It reduces your taxable home value by $100,000 for school district taxes (as of 2023 legislative changes). Veterans with disabilities may qualify for additional or full exemptions. **Foreclosure Process:** Texas is a non-judicial foreclosure state, meaning lenders can foreclose without going to court, and the process can move quickly — as fast as 21 days after the notice of sale is posted. If you ever fall behind on payments, contact your lender and a HUD-approved counselor immediately. Do not wait.

§ 06 — Ask a question

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