Home financing in Radford City.

Home financing — most commonly called a mortgage — is a loan you use to purchase a home. You agree to repay the lender over a set number of years, usually 15 or 30, while the home itself serves as collateral. Your monthly payment covers the principal (the amount you borrowed), interest, and often property taxes and homeowner's insurance bundled together.

There are several types of home loans available to buyers in Radford City:

• **Conventional 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 accept lower credit scores (down to 580 in many cases) and down payments as low as 3.5%. A popular choice for first-time buyers.

• **VA loans** — available to eligible veterans, active-duty service members, and surviving spouses. No down payment required. Given Radford City's proximity to the New River Valley and Virginia's strong military community, many local buyers qualify.

• **USDA Rural Development loans** — parts of the New River Valley region may qualify for USDA programs. Worth checking with a local lender.

• **ITIN loans** — designed for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number. Several lenders in Virginia offer these. You do not need to be a U.S. citizen to buy a home.

Federal programs like FHA and VA are tools — your local lender is the one who actually processes and approves your loan.

Radford City sits in the New River Valley of Southwest Virginia, home to Radford University and a mix of long-time residents, university employees, tradespeople, and small landlords. The local economy includes healthcare (Carilion New River Valley Medical Center), education, manufacturing, and a growing small-business sector.

You may qualify for a home loan if you:

• Have a steady income — employment, self-employment, Social Security, rental income, or a mix of sources all count.

• Have a credit score of at least 580 for FHA or 620 for most conventional loans. Some ITIN lenders evaluate your credit history differently.

• Can show you have lived and worked in the area consistently — lenders like to see 2 years of employment or self-employment history.

• Have some savings for a down payment and closing costs, though down-payment assistance programs exist (see Section 5).

**Self-employed contractors and small landlords:** You are absolutely eligible. Lenders will look at your tax returns (typically 2 years), profit-and-loss statements, and bank statements.

It is common to show fluctuating income — that is normal for tradespeople and rental investors.

A local CDFI or credit union will often be more flexible in reviewing your full financial picture than a large national bank.

**ITIN holders:** You do not need a Social Security Number. ITIN-friendly lenders in Virginia will review your ITIN tax filings, rental history, and bank statements to assess your ability to repay.

Gathering your paperwork before you start talking to lenders saves time and reduces stress. Here is what most lenders in Virginia will ask for:

**For W-2 employees:**

• Two most recent W-2 forms

• Two most recent pay stubs

• Two years of federal tax returns

• Two to three months of bank statements

• Government-issued photo ID

• Proof of address (utility bill, lease, or mortgage statement)

**For self-employed or independent contractors:**

• Two years of personal and business federal tax returns

• Year-to-date profit-and-loss statement (a simple summary is fine to start)

• Three to six months of business and personal bank statements

• Business license or registration if you have one

• 1099 forms if applicable

**For ITIN applicants:**

• ITIN card or letter from the IRS

• Two to three years of ITIN-filed tax returns

• Twelve months of bank statements

• Proof of rent payment history (cancelled checks, money order receipts, or a landlord letter)

• Two forms of ID (passport, consular ID, or foreign driver's license are often accepted)

**For all buyers:**

• Information about any existing debts (car loans, student loans, credit cards)

• Gift letters if part of your down payment is a gift from family

Do not worry if your paperwork is not perfectly organized. A good local loan officer will walk you through exactly what they need.