Home financing in Stephens County.

Home financing is a loan — usually called a mortgage — that lets you buy or improve a property by paying back the cost over time, typically 15 to 30 years. You make a down payment upfront (often 3%–20% of the purchase price), and a lender covers the rest. Each month you repay a portion of the loan plus interest.

There are several common types:

• **Conventional loans** — offered by banks and credit unions, usually require stronger credit.

• **FHA loans** — backed by the Federal Housing Administration, allow lower down payments (as low as 3.5%) and are more flexible on credit scores.

• **USDA Rural Development loans** — Stephens County is largely rural and many properties here qualify for zero-down USDA loans through the U.S. Department of Agriculture.

• **ITIN loans** — designed for borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). Several Texas-based lenders offer these.

• **Hard-money and private loans** — short-term loans used by investors, often higher cost. Use carefully.

For solo contractors and small investors, the most important thing to know is that your income type — whether W-2, 1099, or self-employed — does not automatically disqualify you. Lenders look at your overall financial picture.

Stephens County sits in West-Central Texas. Its economy is rooted in oil and gas, ranching, agriculture, and small trades — meaning a large share of working residents are self-employed contractors, seasonal workers, or work in industries with variable income. Lenders who understand this regional economy are your best allies.

**General eligibility factors lenders consider:**

• **Credit score** — FHA loans typically accept scores as low as 580 (with 3.5% down) or even 500 (with 10% down). Conventional loans usually want 620 or higher. ITIN loans vary by lender but many accept scores of 600+.

• **Income stability** — Lenders want to see two years of consistent income. Self-employed borrowers typically provide two years of tax returns. If your income varies season to season (common in oil-field and ranch work), a lender familiar with West Texas norms will read your file more fairly.

• **Debt-to-income ratio (DTI)** — Most programs want your total monthly debts to be no more than 43%–50% of your gross monthly income.

• **Down payment** — USDA loans can be zero down for qualifying rural properties. FHA is 3.5%. Conventional can be as low as 3% through certain programs.

• **ITIN borrowers** — You do not need a Social Security Number to buy a home in Texas. Several lenders in the region accept ITINs. You will typically need 2 years of ITIN tax returns, a valid ID, and a larger down payment (often 10%–20%).

**Good news for Stephens County:** Because much of the county is designated rural by the USDA, many homes in and around Breckenridge — the county seat — may qualify for USDA Rural Development loans, which carry no down payment requirement and competitive interest rates.

Gathering your paperwork before you approach a lender saves time and stress. Here is what most home-loan applications require:

**For all borrowers:**

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

• Social Security Number or ITIN

• Two most recent months of bank statements (all pages)

• Two most recent pay stubs (if you receive them)

• Two years of federal tax returns (all pages, all schedules)

• Two years of W-2s or 1099s

• Proof of any additional income (rental income, child support, etc.)

**If self-employed or a solo contractor:**

• Two years of personal AND business tax returns

• Year-to-date profit-and-loss statement (a simple one-page summary is fine; your accountant or tax preparer can help)

• Business license or DBA registration if applicable

**If using an ITIN:**

• ITIN letter from the IRS (Form CP565)

• Two years of ITIN-filed tax returns

• Additional ID (passport from country of origin is common)

• Proof of residence history (utility bills, lease agreements)

**For the property itself:**

• Signed purchase agreement (once you have one)

• Contact information for your real estate agent or seller

Tip: Many residents in Stephens County work with a local tax preparer in Breckenridge who is already familiar with 1099 and oil-field income. Ask them to print a clean copy of your last two years of returns — this one step speeds up nearly every loan application.