Home financing in Skagit County.

Home financing means borrowing money to buy, build, or improve a home — and agreeing to pay it back over time, usually with interest.

The most common tool is a mortgage, where the home itself serves as collateral for the loan.

In Skagit County, homes range from modest manufactured homes in rural areas to single-family houses in Burlington, Mount Vernon, Anacortes, and Sedro-Woolley. Prices vary widely by location, so the loan amount and type you need will depend on which area you are looking at.

There are several broad categories of home loans:

• **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 government, with lower down-payment requirements (as low as 3.5%) and more flexible credit guidelines. These are popular with first-time buyers.

• **USDA Rural Development loans** — many parts of Skagit County qualify as rural under USDA guidelines, meaning eligible buyers may finance with zero down payment.

• **VA loans** — for eligible veterans and active-duty service members, also with no down payment required.

• **ITIN loans** — offered by select community lenders for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number.

Federal programs set the rules, but your local lender is the one who actually originates and services your loan. Choosing the right local partner matters just as much as choosing the right loan type.

Skagit County's economy is a mix of agriculture, food processing, manufacturing, retail, healthcare, and a growing number of self-employed tradespeople and contractors.

This means many local borrowers have income that looks different from a standard W-2 paycheck — and that is okay.

Lenders familiar with this region know how to read tax returns for farm income, seasonal construction wages, or small-business profit-and-loss statements.

**Income:** Most lenders want to see that your housing payment will be no more than 28–31% of your gross monthly income, and that all debt payments combined stay under 43–50%. Self-employed borrowers typically need two years of tax returns to document their income.

**Credit:** A score of 580 or higher opens FHA options; 620 or higher opens most conventional loans. If your score is lower, local credit unions and CDFIs sometimes work with you to build it before applying — rather than turning you away.

**ITIN borrowers:** If you do not have a Social Security Number, you can still qualify for a home loan through lenders that accept ITINs. This is increasingly common in Skagit County given the large agricultural and food-industry workforce. You will need a longer history of consistent income documentation, but it is achievable.

**Down payment:** Programs exist for as little as 0–3% down for eligible buyers. Skagit County's median household income means many buyers qualify for Washington State's down-payment assistance programs (see Section 5).

**Rural eligibility:** A significant portion of Skagit County — including areas around Concrete, Hamilton, Lyman, and parts of the Skagit Valley — qualifies for USDA Rural Development loans. Check the USDA eligibility map with your lender before assuming you do or do not qualify.

Gathering paperwork before you apply saves time and stress. The exact list varies by lender and loan type, but here is what most home loan applications in Skagit County will require:

**Identity and residency:**

• Government-issued photo ID (passport, driver's license, Matrícula Consular, or equivalent)

• ITIN letter or Social Security card

• Immigration documents if applicable (lenders cannot legally discriminate based on immigration status for ITIN loans)

**Income documentation:**

• Last two years of federal tax returns (all pages, all schedules)

• Last two years of W-2s or 1099s

• Last 30–60 days of pay stubs (if employed)

• Profit-and-loss statement (if self-employed or contractor)

• Current lease agreements or rental income statements (if applicable)

**Assets:**

• Last two to three months of bank statements (all pages)

• Documentation of any gift funds for down payment

• Retirement or investment account statements

**Property:**

• Purchase and sale agreement (once you have one)

• Address of the property for appraisal scheduling

**Debt:**

• Recent statements for any car loans, student loans, credit cards, or other mortgages

Tip: Keep electronic copies of everything in a single folder. Many lenders in Skagit County now use secure online portals — ask your lender how they prefer to receive documents.