Home financing in Wythe County.

Home financing — most often called a mortgage — is a loan that lets you buy a house by paying for it over time, usually 15 to 30 years. The home itself serves as collateral, meaning the lender holds a legal claim on it until the loan is paid off.

Each month you pay back a portion of what you borrowed (principal) plus interest.

Some loans also include property taxes and homeowner's insurance bundled into the monthly payment through an escrow account.

There are several common types of home loans:

• **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%. Good for first-time buyers.

• **USDA Rural Development loans** — because most of Wythe County is classified as a rural area, many properties here qualify for USDA loans, which can require zero down payment for eligible buyers.

• **VA loans** — for veterans and active-duty service members; no down payment required and no private mortgage insurance (PMI).

• **ITIN loans** — for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number. Not all lenders offer these, but several in this region do.

Understanding which loan type fits your situation is the first step. A local housing counselor can help you compare options at no cost.

Wythe County is a small, largely rural community in the New River Valley / Southwest Virginia region. The local economy is anchored by manufacturing, agriculture, healthcare, and small business — including many self-employed tradespeople and contractors. This matters for financing because your income type affects how you prove you can repay a loan.

**You may qualify if you:**

• Have a steady income from a job, self-employment, or a mix of both

• Have lived at the same address or worked in the same field for at least two years

• Have a credit score of 580 or higher (lower scores may still qualify with certain programs)

• Can show consistent tax filing history — even if you use an ITIN

• Have enough savings for a down payment and closing costs (though some programs help cover these)

**Self-employed buyers and contractors** should expect to provide two years of tax returns and may need a letter from an accountant. Lenders look at your net income after business deductions, so the lower your taxable income appears on paper, the harder it can be to qualify for a large loan. A HUD-approved housing counselor can help you plan ahead.

**ITIN holders** — many lenders in this region will work with buyers who do not have a Social Security Number. You will need a valid ITIN, at least two years of tax returns filed with that ITIN, and often a larger down payment (typically 10–20%).

Because most of Wythe County qualifies as a USDA-eligible rural area, income limits apply but are generous for a family of four — check current limits at the USDA eligibility website or ask a local lender.

Gathering your paperwork before you talk to a lender saves time and reduces stress. Here is what most lenders in Wythe County will ask for:

**For all buyers:**

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

• Social Security Number or ITIN

• Two most recent pay stubs (if you are employed by someone else)

• W-2s or 1099s from the last two years

• Federal tax returns for the last two years (all pages)

• Two to three months of bank statements

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

• Landlord contact information or mortgage statements for your current home

**For self-employed buyers and contractors:**

• Two years of personal AND business tax returns

• Year-to-date profit and loss statement

• Business bank statements (2–3 months)

• Business license or proof of operation

**For ITIN borrowers, additional items may include:**

• ITIN assignment letter from the IRS

• Two years of ITIN-filed tax returns

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

• Larger down payment documentation

**Tip:** Keep digital copies of all documents. Many lenders now accept uploads through a secure online portal. Do not send sensitive documents by regular email unless the lender provides an encrypted link.