HOME FINANCING · TX

Home Financing Guide for Wichita County, Texas

Buying a home in Wichita County, Texas is within reach for working families, solo contractors, and first-time buyers — including those without a Social Security number. This guide walks you through what home financing looks like locally, who qualifies, what paperwork you'll need, and which lenders and community organizations in the Wichita Falls area can actually help you. We highlight local credit unions, ITIN-friendly lenders, and community development resources so you're not navigating this alone. Take your time, ask questions, and never feel pressured to sign anything you don't fully understand.

§ 01 — What it is

What Is Home Financing?

Home financing — commonly called a mortgage — is a loan that lets you buy a home by paying it back over time, usually 15 to 30 years. The lender holds a lien on the property until the loan is paid off. Each monthly payment covers a portion of the principal (the amount you borrowed), interest (the lender's fee), and often property taxes and homeowner's insurance bundled together in what's called an escrow account. In Wichita County, you'll encounter several common loan types: • **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, allowing lower credit scores (as low as 580) and down payments as low as 3.5%. Popular with first-time buyers. • **VA loans** — available to eligible veterans and active-duty military, with no down payment required. Wichita Falls has a significant military population due to Sheppard Air Force Base, making this a widely used option locally. • **USDA loans** — for homes in eligible rural and suburban areas. Parts of Wichita County outside Wichita Falls city limits may qualify. • **ITIN loans** — a growing product for borrowers who do not have a Social Security number but do have an Individual Taxpayer Identification Number. Several lenders in Texas now offer these. No matter which loan type fits your situation, the process starts the same way: understanding your income, your savings, and your credit profile.

§ 02 — Who qualifies

Who Qualifies? Local Economy Context for Wichita County

Wichita County's economy is anchored by healthcare (United Regional Health Care System is the largest employer), Sheppard Air Force Base, oil-field services, agriculture, and a growing trade and retail sector. Many residents work as independent contractors, seasonal agricultural workers, small-business owners, or military families — and each of these work profiles has its own path to qualifying for a home loan. **If you're a solo contractor or self-employed:** Lenders will look at two years of tax returns, profit-and-loss statements, and bank statements rather than pay stubs. Consistency of income matters more than any single high-earning month. **If you're active military or a veteran:** VA loans are a strong option. Sheppard Air Force Base brings tens of thousands of personnel and their families to the area; local lenders are experienced with VA paperwork. **If you work in oil-field or seasonal jobs:** Gaps in employment can make lenders nervous, but some local credit unions and community lenders understand the region's cyclical industries. Be ready to explain your income pattern. **If you're an immigrant without a Social Security number:** You can still qualify for a home loan using your ITIN. Several Texas-based lenders and credit unions offer ITIN mortgage products. A stable work history, consistent bank deposits, and two years of filed tax returns using your ITIN are the foundation. **General qualifying factors most lenders look at:** - Debt-to-income ratio (ideally below 43%) - Credit score (requirements vary by loan type) - Employment or income stability (typically 2 years) - Down payment savings - Savings reserves after closing

§ 03 — What you need

Documents You Will Typically Need

Getting your paperwork together before you meet with a lender saves time and reduces stress. The exact list varies by loan type, but here is what most home loan applications in Wichita County will require: **Identity & Residency** - Government-issued photo ID (driver's license, passport, or consular ID) - Social Security number OR Individual Taxpayer Identification Number (ITIN) - Immigration documents if applicable (green card, visa, work permit) **Income & Employment** - Last two years of federal tax returns (all pages, all schedules) - W-2s or 1099s from the last two years - Recent pay stubs (30 days for employees; 3–6 months of bank statements for self-employed) - Profit-and-loss statement if self-employed (often prepared by an accountant) - Award letters for Social Security, VA benefits, or retirement income **Assets** - Last two to three months of bank statements (all accounts) - Documentation of any gift funds (a signed gift letter is required if family is helping with the down payment) - Retirement or investment account statements **Property** - Purchase contract (once you have a signed offer) - Contact information for your real estate agent **Credit** - Lenders pull your credit report themselves, but it helps to know your score in advance. You can check for free at AnnualCreditReport.com. If you've had past credit issues — a bankruptcy, foreclosure, or collections — don't hide them. A good local lender will work with you to understand the timeline and advise on realistic options.

§ 04 — Where to start in Wichita County

Local Lenders, CDFIs, Credit Unions, and ITIN-Friendly Resources in Wichita County

The most important step is finding a lender who knows this community. Here are real local and regional resources that serve Wichita County residents: **Local Credit Unions** - **Wichita Federal Credit Union** — Based in Wichita Falls, this member-owned institution serves the local community and often offers more flexible underwriting than large national banks. Credit unions typically have lower fees and a genuine interest in member success. - **Texoma Community Credit Union** — Serves the broader Texoma region and has mortgage products for first-time buyers and existing homeowners. - **Sheppard Federal Credit Union** — Primarily serves Sheppard AFB personnel, veterans, and their families. Strong VA loan expertise and competitive rates for military borrowers. **Community and Regional Banks** - **First National Bank Texas** — Has a presence in the Wichita Falls area and offers a range of home loan products including FHA and conventional. - **City Bank (Texas)** — A Texas-chartered community bank with mortgage lending in North Texas, including Wichita County. **ITIN-Friendly Lenders** Several Texas-chartered lenders and mortgage companies have developed ITIN loan programs specifically for borrowers without Social Security numbers. Look for lenders advertising "ITIN mortgage" or "préstamo con ITIN" in the North Texas region. The Texas Mortgage Bankers Association can help connect you to vetted ITIN lenders. Always confirm the lender is licensed with the **Texas Department of Savings and Mortgage Lending (TDSML)** before proceeding — you can verify at sml.texas.gov. **SBA & Small Business Resources (for Investor-Buyers)** If you're purchasing a property as part of a small business or rental investment, the **SBA Dallas/Fort Worth District Office** covers Wichita County. While SBA loans are primarily for business real estate, they are relevant for owner-occupied mixed-use properties or small rental businesses. - SBA DFW District Office: (817) 684-5500 **Nonprofit Housing Counseling** - **NeighborWorks America Network** — HUD-approved housing counselors provide free or low-cost pre-purchase counseling. A HUD-approved counselor can review your finances, help you compare loan offers, and flag anything that looks unfair. Find a local HUD-approved agency at hud.gov/counseling. - **Texas State Affordable Housing Corporation (TSAHC)** — A state-created nonprofit that offers down payment assistance programs available to buyers in Wichita County. Their "Homes for Texas Heroes" program covers teachers, nurses, veterans, and first responders. Their "Home Sweet Texas" program is income-based and open to a wide range of buyers. **Down Payment Assistance** - **TSAHC Down Payment Assistance** — Offers grants (no repayment required) and low-interest second loans for qualifying buyers. Apply through a participating lender. - **My First Texas Home (Texas Department of Housing and Community Affairs)** — Offers a 30-year fixed-rate mortgage combined with down payment and closing-cost assistance for first-time buyers and veterans.

§ 05 — What to avoid

Texas-Specific Regulatory Notes

Texas has some of the strongest homestead protections in the country, and a few rules that are unique to this state. If you're coming from another state, these may surprise you. **Texas Homestead Law** Once a home is your primary residence, Texas law makes it very difficult for most creditors (outside of mortgage lenders, tax authorities, and a few others) to force a sale. This is a strong protection for homeowners. **Home Equity Loans — Section 50(a)(6)** Texas has strict rules around borrowing against your home's equity. Key points: - You can only have one home equity loan at a time. - You can only borrow up to 80% of your home's appraised value (combined with your existing mortgage). - You must wait 12 days after applying before closing. - You have three business days to cancel after closing. These rules protect homeowners from being stripped of equity. **Property Taxes** Texas has no state income tax, but property taxes are among the highest in the nation. In Wichita County, effective property tax rates typically run between 1.5% and 2.5% of appraised value annually. Make sure your lender's payment estimates include a realistic tax figure — it can significantly affect your monthly escrow payment. **Homestead Exemption** Once you buy a home and make it your primary residence, file for the homestead exemption with the **Wichita Appraisal District** (wichitaad.org). This reduces your taxable property value by at least $100,000 for school district taxes (under new 2023 legislation) and can meaningfully lower your annual tax bill. **Lender Licensing** All mortgage lenders and loan officers operating in Texas must be licensed through the **Texas Department of Savings and Mortgage Lending (TDSML)**. You can verify any lender's license at sml.texas.gov. Never work with an unlicensed lender. **Community Reinvestment Act (CRA) Lenders** Banks with a local presence in Wichita County are subject to the Community Reinvestment Act, which requires them to serve the credit needs of the communities they operate in, including low- and moderate-income neighborhoods. If you feel a local bank is unfairly denying credit to your neighborhood, this is the law that governs that.

§ 06 — Ask a question

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