Home financing in Falls County.

Home financing means borrowing money to purchase, build, or improve a home, and paying it back over time — usually 15 to 30 years — with interest. The loan is secured by the property itself, meaning if payments stop, the lender can foreclose.

The most common types of home loans you will encounter in Falls County are:

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

• **FHA loans** — backed by the Federal Housing Administration, these allow lower credit scores (as low as 580) and down payments as low as 3.5%. A useful option for first-time buyers.

• **USDA Rural Development loans** — because much of Falls County qualifies as rural under USDA definitions, many buyers here may be eligible for zero-down-payment loans through the USDA Single Family Housing program. This is one of the most impactful options for this county.

• **VA loans** — for eligible veterans and active-duty service members, these offer zero down payment and no private mortgage insurance.

• **ITIN loans** — for buyers who do not have a Social Security number but have an Individual Taxpayer Identification Number (ITIN). Several lenders in Central Texas offer these, and they are a legitimate path to homeownership.

Federal programs like FHA and USDA set the rules, but you access them through a local lender or CDFI — that local relationship is what matters most.

Falls County's economy is rooted in farming and ranching, small-scale construction and trades, healthcare (Baylor Scott & White Clinic in Marlin), and local government employment. Many residents are self-employed, seasonal workers, or paid in cash — which affects how lenders look at income.

**If you are a W-2 employee:** Qualifying is straightforward. Lenders want two years of employment history, recent pay stubs, and a debt-to-income ratio generally below 43–45%.

**If you are self-employed or a solo contractor:** You will need two years of tax returns (personal and business), a profit-and-loss statement, and bank statements showing consistent deposits. Some CDFI lenders use bank statement programs that better reflect your real income.

**If you are a seasonal or agricultural worker:** The USDA Farm Service Agency and some CDFI lenders have experience with seasonal income patterns. Document every income source carefully.

**If you use an ITIN:** You do not need a Social Security number to buy a home. ITIN mortgage programs exist at several lenders serving the Waco–Falls County corridor. You will typically need 2 years of ITIN tax returns, a larger down payment (10–20%), and 12–24 months of bank statements.

**Credit and income thresholds vary by program.** If your credit is thin or imperfect, a CDFI or HUD-approved housing counselor can help you build a plan before you apply anywhere.

Gathering paperwork early saves time and stress. Here is what most lenders will ask for:

**Identity and residency:**

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

- ITIN letter from the IRS (if applicable) or Social Security card

- If applicable, immigration documents (green card, visa, work permit)

**Income:**

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

- W-2s or 1099s for the past 2 years

- Most recent 30 days of pay stubs (for employees)

- 12–24 months of personal bank statements

- Profit-and-loss statement (for self-employed applicants)

**Assets:**

- Bank and investment account statements (last 2–3 months)

- Documentation of any gift funds (gift letter from the donor)

**Property:**

- Signed purchase contract (once you have one)

- Property address for USDA eligibility check

**Credit:**

- Lenders pull your credit report — you do not need to bring it, but review your own credit at AnnualCreditReport.com before applying so there are no surprises.

Organize everything in a folder — physical or digital — before your first lender meeting. It signals preparation and speeds up the process.