Home financing in Hill County.

Home financing means borrowing money to purchase a house, with the home itself serving as the security for the loan.

You repay the lender over time — typically 15 or 30 years — through monthly payments that cover the loan principal and interest.

Most loans also roll in property taxes and homeowner's insurance through an escrow account, so you are not caught off guard by those bills.

The most common loan types you will encounter in Hill County are:

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

• **FHA loans** — backed by the federal government and designed for buyers with lower credit scores or smaller down payments (as low as 3.5%). A useful starting point, but not the only option.

• **USDA Rural Development loans** — because most of Hill County is classified as rural, many properties here qualify for USDA loans, which can offer zero-down-payment financing for eligible buyers.

• **ITIN loans** — for buyers who do not have a Social Security number but do have an Individual Taxpayer Identification Number. Several regional lenders and CDFIs offer these products specifically.

• **Texas Veterans Land Board (VLB) loans** — for Texas veterans, available alongside or instead of federal VA loans.

Understanding which product fits your situation is the first step. A local lender or CDFI can help you compare options without any obligation.

Hill County sits in the heart of North-Central Texas, with an economy built around agriculture, manufacturing, healthcare, and small businesses. Hillsboro is the county seat, and the area draws buyers from Corsicana to the east and Waco to the south. Here is what that means practically for qualification:

**Agricultural and self-employed workers:** Many Hill County residents earn income from farming, ranching, trucking, or construction. Lenders will want to see two years of tax returns and, often, a profit-and-loss statement. A local lender who understands agricultural income is a major advantage over an online-only lender.

**Hourly and wage workers:** If you receive a W-2, qualifying is more straightforward. Most lenders look for steady employment for at least two years in the same field.

**ITIN holders:** You do not need a Social Security number to buy a home. Several lenders that serve Hill County offer ITIN mortgage products. You will need two years of tax returns filed with your ITIN, a larger down payment (often 10–20%), and verifiable income.

**First-time buyers:** Hill County's relatively affordable home prices — median values tend to run well below the Texas statewide average — make it an accessible entry point. First-time buyer assistance programs through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA) can layer on top of a primary mortgage.

**Rural property buyers:** Because much of Hill County is USDA-eligible, income limits apply (roughly $110,650 for a household of 1–4 in most Texas rural counties as of 2024 — confirm current limits with your lender), but the zero-down option can be life-changing for qualified buyers.

Gathering your paperwork early saves weeks. Every lender is a little different, but here is a solid starting list for Hill County home buyers:

**Identity and residency:**

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

- If using an ITIN: your ITIN letter from the IRS and last two years of ITIN-filed tax returns

**Income:**

- Last two years of federal tax returns (all pages)

- Last two years of W-2s or 1099s

- Last 30 days of pay stubs (for W-2 employees)

- For self-employed or agricultural workers: profit-and-loss statement, possibly a CPA letter

**Assets:**

- Last two to three months of bank statements (all pages, all accounts)

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

**Property:**

- Signed purchase agreement or contract (once you have one)

- Information about the property address for the lender to order an appraisal

**Credit:**

- You do not need to pull your own credit — the lender will do this with your permission. If you have thin or no credit history, ask about alternative credit verification (rent payments, utility payments, insurance payments).

Keep digital copies of everything. A simple folder on your phone or computer organized by category will save you time.