Home financing in Fayette County.

Home financing is a loan that helps you purchase a residential property — a house, a duplex, or a small investment property — when you don't have the full purchase price in cash. You borrow money from a lender, use the home as collateral, and repay the loan over time (typically 15 to 30 years) with interest.

In Fayette County, most home purchases are financed through one of these main paths:

• **Conventional loans** — Offered by banks and credit unions, usually 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. FHA loans are a popular starting point for first-time buyers.

• **USDA Rural Development loans** — Because much of Fayette County is classified as rural, many buyers here may qualify for a USDA loan with zero down payment. This is one of the most powerful tools available to Fayette County residents and is often overlooked.

• **ITIN-based loans** — Designed for borrowers who pay taxes using an Individual Taxpayer Identification Number (ITIN) rather than a Social Security Number. These are offered by select community lenders and CDFIs and are a real path to homeownership.

• **Texas Veterans Land Board (VLB) loans** — A state-level benefit for eligible Texas veterans that offers competitive rates and low down payments on home purchases.

There is no single 'best' loan. The right fit depends on your income, credit history, residency status, and the property itself.

Fayette County's economy is rooted in agriculture, ranching, oil-field services, construction trades, and small retail. Many residents are self-employed, work seasonal jobs, or earn income that doesn't show up neatly on a W-2. Lenders in this region are familiar with non-traditional income documentation — you don't need a corporate paycheck to apply.

**General eligibility factors lenders look at:**

• Stable income from any legal source (wages, self-employment, farming, rental income)

• Credit history — even a thin or non-traditional credit history can be acceptable with the right lender

• Debt-to-income ratio — roughly, your monthly debt payments should not exceed 43–50% of your gross monthly income

• The property must be in an eligible area and in reasonable condition

**USDA Rural Development eligibility:** A large portion of Fayette County — including areas around La Grange, Schulenburg, Flatonia, and Ellinger — may be eligible for USDA-backed zero-down loans.

Income limits apply (typically up to 115% of the area median income for your household size).

You can check USDA's property eligibility map online or ask a local lender to check for you.

**ITIN borrowers:** If you do not have a Social Security Number but have filed U.S. taxes using an ITIN, you can still qualify for a home loan through specific lenders who offer ITIN mortgage programs.

These lenders evaluate your tax returns, work history, and rental payment history instead of traditional credit scores.

This is a fully legal and legitimate path to homeownership.

**Texas Veterans:** If you served in the U.S. military and are a Texas resident, the Texas Veterans Land Board offers home loans with competitive fixed rates and down payments as low as 0% for eligible veterans.

Gathering your paperwork early makes the process much smoother. Requirements vary by lender and loan type, but most home loan applications in Fayette County will ask for some combination of the following:

**Identity & Residency**

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

• ITIN letter (if applicable) or Social Security card

• Proof of residency (utility bill, lease agreement)

**Income Verification**

• Last two years of federal tax returns (personal and business if self-employed)

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

• Recent pay stubs (last 30 days)

• Bank statements for the last 2–3 months

• If self-employed or a contractor: a profit-and-loss statement, business bank statements, or a letter from an accountant

**Assets & Savings**

• Bank account statements showing funds for down payment and closing costs

• Statements for any retirement or investment accounts

**Property Documents** (provided after you find a home)

• Signed purchase agreement

• Property address for appraisal and title search

**Tip for ITIN applicants:** Bring your last two years of ITIN tax returns, a 12-month history of on-time rent payments (a letter from your landlord works), and 12 months of bank statements. These three items are the foundation of an ITIN loan application.