HOME FINANCING · TX

Home Financing Guide for Webb County, Texas

Webb County, anchored by the City of Laredo, has a strong binational economy and a large Spanish-speaking population, many of whom are self-employed or work in cross-border trade. This guide walks you through how home financing works locally — from who qualifies to which local lenders, credit unions, and CDFIs actually serve this community. Whether you have a Social Security number or only an ITIN, there are real options available to you in Webb County. Take your time, compare offers, and never feel pressured to sign anything you do not fully understand.

§ 01 — What it is

What Is Home Financing?

Home financing — often called a mortgage or home loan — is money you borrow from a lender to buy or improve a home. You repay the loan over time, usually 15 or 30 years, in monthly payments that include both the principal (the amount you borrowed) and interest (the cost of borrowing). Most home loans also include property taxes and homeowner's insurance rolled into your monthly payment through an escrow account. There are several types of home loans you may encounter in Webb County: • **Conventional loans** — Standard 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** — Backed by the Federal Housing Administration, these allow lower down payments (as low as 3.5%) and are more flexible on credit scores. They are popular in Webb County. • **VA loans** — For eligible veterans and active-duty military. No down payment required. • **USDA loans** — For homes in designated rural or semi-rural areas. Parts of Webb County outside the Laredo city limits may qualify. • **ITIN loans** — For borrowers who do not have a Social Security number but do have an Individual Taxpayer Identification Number. Several local and regional lenders offer these. • **Down payment assistance programs** — Grants or second loans that help cover the upfront costs of buying a home. Home financing is not one-size-fits-all. The right loan depends on your income, credit history, immigration status, and the property you want to buy.

§ 02 — Who qualifies

Who Qualifies in Webb County?

Webb County's economy is shaped by international trade, trucking and logistics, retail, healthcare, government employment, and a large base of self-employed and informal workers tied to cross-border commerce. Lenders in this region are accustomed to income profiles that look different from a typical salaried W-2 worker. **You may qualify for a home loan if:** • You have a steady income — even if it comes from self-employment, a small business, or multiple part-time jobs. • You have been filing taxes consistently, whether with a Social Security number or an ITIN. • You have some savings for a down payment and closing costs (though assistance programs can help). • Your debt-to-income ratio (your monthly debts compared to your monthly income) is manageable — generally below 43–50%. **ITIN Borrowers:** Many residents of Webb County purchase homes using an ITIN. You do not need a Social Security number or U.S. citizenship to buy a home in Texas. ITIN loans are offered by select local lenders and credit unions (listed in Section 4). Lenders will typically ask for 2 years of tax returns, a larger down payment (often 10–20%), and proof of stable income. **Self-Employed Borrowers:** If you run your own business, work as a contractor, or earn income from cross-border trade, lenders will look at your last 2 years of tax returns, profit-and-loss statements, and bank statements. Some lenders offer bank statement loans that use 12–24 months of deposits instead of tax returns to verify income. **First-Time Homebuyers:** Texas has specific programs for first-time buyers through the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA), which can be layered with local assistance in Webb County.

§ 03 — What you need

Documents You Will Typically Need

Gathering your documents before you apply saves time and reduces stress. Requirements vary by lender and loan type, but here is what most lenders in Webb County will ask for: **Identity & Residency** • Government-issued photo ID (passport, consular ID/matrícula consular, driver's license) • Social Security number OR ITIN (Form W-7 or your ITIN letter from the IRS) • Immigration documents if applicable (green card, visa, work authorization — not always required for ITIN loans) **Income Verification** • Last 2 years of federal tax returns (1040s), including all schedules • W-2s or 1099s for the last 2 years • Recent pay stubs (last 30 days) if you are an employee • Profit-and-loss statement if self-employed • 12–24 months of bank statements (for bank statement loan programs) • Letter from your employer or accountant if income is irregular **Assets** • Last 2–3 months of bank statements for all accounts • Documentation of any gift funds for the down payment • Retirement or investment account statements if applicable **Property** • Purchase agreement (once you have one) • Property address for the lender to order an appraisal **Credit** • Most lenders will pull your credit report themselves. If you have no U.S. credit history, some ITIN-friendly lenders accept alternative credit references such as utility bills, rent payment history, or remittance records. Tip: Keep copies of everything you submit. Never hand over original documents — always provide copies.

§ 04 — Where to start in Webb County

Local Lenders, CDFIs, Credit Unions & ITIN-Friendly Options That Serve Webb County

This is the most important section of this guide. The following organizations are known to serve Webb County residents — including ITIN borrowers, self-employed individuals, and first-time buyers. Origen Capital is a directory, not a lender. Always compare at least two or three offers before choosing. --- **Local & Regional Banks** • **Falcon International Bank** — Based in Laredo. A community bank with deep roots in the Webb County economy. Familiar with the cross-border business community and local income patterns. • **International Bank of Commerce (IBC Bank)** — Headquartered in Laredo, with branches throughout Webb County. One of the largest community banks in South Texas. Historically active in mortgage lending in this market and experienced with binational clients. • **Lone Star National Bank** — Serves the South Texas and Rio Grande Valley region, including Webb County. Community-focused mortgage products. --- **Credit Unions** • **Laredo Federal Credit Union** — Locally based. Credit unions are member-owned and often offer lower fees and more flexible underwriting than large banks. Ask about their first-time homebuyer products. • **Border Federal Credit Union** — Serves residents in Webb County and surrounding border communities. Known for accessible products and bilingual staff. • **RBFCU (Randolph-Brooks Federal Credit Union)** — A large Texas-based credit union with a presence in the region. Competitive mortgage rates and a range of products. --- **ITIN-Friendly Lenders** • **IBC Bank** (see above) — Has historically offered ITIN mortgage products. • **Falcon International Bank** (see above) — Ask specifically about ITIN or non-traditional income mortgage products. • **Self-Help Federal Credit Union** — A national CDFI credit union with Texas operations. Specializes in underserved borrowers, including ITIN holders. Contact their Texas office to confirm current Webb County service. • **Accion Opportunity Fund** — A leading CDFI that serves Texas. While primarily focused on small business, they can connect borrowers with housing resources and financial coaching that helps qualify for a mortgage. --- **CDFIs & Nonprofit Housing Organizations** • **NeighborWorks America Network** — Connects Webb County residents to HUD-approved housing counselors and local nonprofits offering down payment assistance. Start at neighborworks.org. • **Texas State Affordable Housing Corporation (TSAHC)** — Offers the Homes for Texas Heroes and Home Sweet Texas programs, which provide down payment assistance (grants and second loans) that can be used with FHA, VA, USDA, or conventional loans. Income limits apply — check their website for Webb County limits. • **Texas Department of Housing and Community Affairs (TDHCA)** — Administers the My First Texas Home program. Offers a 30-year fixed-rate mortgage plus up to 5% in down payment and closing cost assistance. Income and purchase price limits apply. • **Webb County Community Action Agency** — Contact them to ask about local housing assistance programs, down payment grants, and referrals to HUD-approved counselors in the Laredo area. --- **SBA San Antonio District Office (for context)** The U.S. Small Business Administration's San Antonio District Office covers Webb County. While SBA programs are primarily for business financing, SBA-backed lenders in the region often understand self-employed income structures — useful context if your income comes from a small business and you are also seeking a home loan. --- **HUD-Approved Housing Counselors** Before you apply for a loan, speaking with a HUD-approved housing counselor is free and confidential. They can review your finances, explain your options, and help you avoid predatory lenders. Find one at hud.gov or call 1-800-569-4287. Ask for a counselor who works in Webb County or speaks Spanish.

§ 05 — What to avoid

Texas State-Specific Rules and Programs

Texas has some unique laws and programs that affect home financing. Here is what every Webb County buyer should know: **Texas Homestead Law** Texas has one of the strongest homestead protections in the country. Once a home is your primary residence, most creditors cannot force you to sell it to pay off unsecured debts. This protection is automatic — you do not need to file anything. **Home Equity Loan Rules** Texas limits how much equity you can borrow against your home. You can borrow no more than 80% of your home's appraised value through a home equity loan or cash-out refinance. This is a constitutional protection that applies statewide. **Community Property State** Texas is a community property state. This means that if you are married, your spouse may need to sign certain loan documents — even if they are not a co-borrower on the mortgage. Ask your lender about this early in the process. **Property Taxes in Webb County** Texas has no state income tax, but property taxes are higher than the national average. In Webb County, effective property tax rates typically range from 2% to 2.5% of the appraised value annually. This is a significant part of your monthly payment (through escrow). Budget for it carefully. **Homestead Exemption** Once you own and live in your home in Webb County, apply for the Homestead Exemption with the Webb County Appraisal District. This reduces your taxable property value by at least $100,000 for school district taxes (as of 2023 legislation) and can lower your annual property tax bill substantially. You must file the exemption — it is not automatic. **Texas Veterans Land Board (VLB)** For Texas veterans, the VLB offers home loans, land loans, and home improvement loans with competitive rates — separate from and in addition to federal VA loans. Webb County veterans should explore both options. **Colonias Considerations** Some parts of Webb County outside the Laredo city limits include colonias — unincorporated communities that may have infrastructure challenges. If you are buying land or a home in a colonia, verify that the property has legal utility connections and a clear title before proceeding. Texas has programs through the Texas Water Development Board and colonias-focused nonprofits to assist residents in these areas.

§ 06 — Ask a question

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