Home financing in Russell County.

Home financing is a loan — called a mortgage — that lets you buy a house by paying it off gradually over time, usually 15 or 30 years. Each month you make a payment that covers part of what you borrowed (the principal) and part of the interest the lender charges. At the end of the loan term, you own the home free and clear.

There are several types of home loans available in Virginia:

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

• **FHA loans** — backed by the federal government, allow lower credit scores (as low as 580) and down payments as low as 3.5%. A good option for first-time buyers.

• **USDA Rural Development loans** — because much of Russell County is designated rural, many buyers here qualify for USDA loans, which can offer zero down payment and competitive rates.

• **VA loans** — for veterans and active-duty military, with no down payment required and no private mortgage insurance.

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

No matter which type you choose, the goal is the same: to find a loan with fair terms that fits your actual income and budget.

Russell County is a rural county in the coalfields region of Southwest Virginia. The local economy has historically been tied to coal mining, agriculture, small manufacturing, and the healthcare sector. Many residents work as independent contractors, seasonal laborers, or in trades — which means income can vary from month to month.

Here is what lenders generally look for, and how it applies to Russell County residents:

• **Income**: Lenders want to see stable income over at least two years. If you are self-employed or a sole contractor (common in construction, farming, or trucking here), you can use two years of tax returns to document your income. Seasonal or variable income is acceptable if it is consistent.

• **Credit score**: A score of 580 or above opens the door to FHA loans. Conventional loans prefer 620+. If your credit is thin or you have no credit history, some CDFI and ITIN lenders will look at alternative credit — things like rent payments, utility bills, and phone payments.

• **Down payment**: Ranges from 0% (USDA, VA) to 3.5% (FHA) to 5–20% (conventional). Down payment assistance programs exist in Virginia that can help cover this cost.

• **Debt-to-income ratio**: Lenders want your total monthly debt payments (including the new mortgage) to be no more than 43–50% of your gross monthly income.

• **ITIN holders**: You do not need a Social Security number to buy a home. ITIN mortgages are real and available. Several lenders in this region work specifically with ITIN borrowers.

If you are unsure whether you qualify, a free consultation with a HUD-approved housing counselor is the best first step — no obligation, no cost.

Gathering your documents ahead of time makes the process smoother. Here is what most lenders will ask for:

**For all borrowers:**

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

• ITIN or Social Security number

• Two years of federal tax returns (all pages)

• Two most recent W-2s or 1099s

• Two to three months of recent bank statements

• Recent pay stubs (last 30 days) — or profit-and-loss statement if self-employed

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

• Landlord contact information and 12–24 months of rental payment history (if renting currently)

**For self-employed contractors and sole proprietors:**

• Two years of business tax returns (Schedule C or Form 1065)

• A current profit-and-loss statement, ideally prepared by an accountant

• Business bank statements (2–3 months)

**For the property:**

• Signed purchase agreement (once you are under contract)

• Property address for the lender to order an appraisal

**For ITIN borrowers specifically:**

• ITIN letter from the IRS (CP565 notice or similar)

• Two years of tax returns filed with that ITIN

• Additional alternative credit documentation if your credit file is thin

Keep originals safe and make copies. Never hand over originals to a lender you have not verified.