Home financing in Union County.

Home financing — most often called a mortgage — is a loan that lets you buy a home and pay for it over time, usually 15 to 30 years. The lender pays the seller on your behalf, and you repay the lender in monthly installments that include principal (the amount you borrowed) and interest (the lender's fee for lending you the money).

In Union County, Indiana, most buyers use one of three broad paths:

• **Conventional loans** — offered by banks, credit unions, and mortgage companies, often sold to Fannie Mae or Freddie Mac on the secondary market. These generally require a credit score of 620 or higher and a down payment of 3–20%.

• **Government-backed loans** — FHA loans (lower credit score requirements, 3.5% down), USDA Rural Development loans (zero down payment, available in most of Union County because it qualifies as a rural area), and VA loans for veterans and active-duty military.

• **Community and portfolio loans** — smaller, locally held loans from community banks, credit unions, or CDFIs (Community Development Financial Institutions). These lenders keep the loan themselves and can be more flexible about credit history, income type, and documentation.

Union County is a small, largely rural county in eastern Indiana, near the Ohio border. Because much of the county meets USDA rural eligibility standards, zero-down USDA loans are a realistic option for many buyers here — but the local intermediary layer is what makes the difference between a confusing process and a smooth one.

Union County has a population of roughly 7,000 people. The local economy includes agriculture, small manufacturing, construction trades, and a growing number of self-employed residents. Liberty is the county seat.

**If you are a W-2 employee:** Most lenders want two years of steady employment in the same field, a debt-to-income ratio (DTI) below 43–45%, and a credit score of at least 580 (FHA) or 620 (conventional). This is the most straightforward path.

**If you are self-employed or a solo contractor:** You can still qualify. Lenders will typically average your last two years of net income from tax returns (Schedule C or Schedule K-1). If your income fluctuates, community banks and CDFIs are often more understanding than large national lenders.

**If you do not have a Social Security Number:** Some lenders in Indiana accept an Individual Taxpayer Identification Number (ITIN) instead. ITIN lending is a real option and is discussed in the lender section below.

**If your credit history is thin or imperfect:** Credit unions and CDFIs often look at your full financial picture — rent history, utility payments, consistent savings — rather than relying solely on a credit score.

**Income limits for USDA loans:** Because Union County qualifies as a rural area under USDA guidelines, the USDA Single Family Housing Guaranteed Loan Program is widely available here.

Household income must generally be at or below 115% of the area median income (AMI).

For 2024, that is roughly $103,500 for a household of 1–4 in this region, but verify current figures with a USDA-approved lender or the USDA Indiana Rural Development office.

Gathering your paperwork before you meet with a lender saves time and stress. The exact list varies by loan type and lender, but most home loan applications in Indiana require:

**Identity and residency:**

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

- Social Security Number or ITIN

- Immigration documents if applicable (green card, visa)

**Income verification:**

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

- W-2s or 1099s for the past two years

- Recent pay stubs (last 30 days) if employed

- Profit-and-loss statement if self-employed (prepared by a CPA or bookkeeper adds credibility)

- Award letters for Social Security, disability, or pension income

**Assets:**

- Last two to three months of bank statements (all accounts, all pages)

- Documentation for any large recent deposits (gift letters, sale of assets)

**Property:**

- Signed purchase agreement (once you have an accepted offer)

- Contact information for your real estate agent

**Debts:**

- Current mortgage or lease information

- Statements for car loans, student loans, credit cards

**Tip for ITIN borrowers:** You will also provide your ITIN letter from the IRS and, if applicable, two years of ITIN-filed tax returns. Some lenders may ask for 12 months of bank statements as a substitute for traditional income documentation. Keep organized copies of everything.