Home financing in Union County.

Home financing is the process of borrowing money to purchase, build, or improve a home — and agreeing to repay that amount over time, usually with interest.

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

Loan terms typically range from 15 to 30 years, and your monthly payment covers both the loan balance (principal) and the interest charged by the lender.

There are several types of home loans available to buyers in Union County:

- **Conventional loans** are offered by banks, credit unions, and mortgage companies. They typically require a credit score of 620 or higher and a down payment of 3–20%.

- **FHA loans** are backed by the federal government and allow lower credit scores (as low as 580) and down payments as low as 3.5%. They are a common starting point for first-time buyers.

- **USDA Rural Development loans** are especially relevant in Union County. Because much of the county is classified as rural, many properties here qualify for zero-down-payment USDA loans for low-to-moderate income buyers.

- **VA loans** are available to eligible veterans, active-duty service members, and surviving spouses. They require no down payment and no private mortgage insurance.

- **ITIN loans** are designed for borrowers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN). Several community lenders in Mississippi offer these.

No matter which loan type fits your situation, the most important first step is connecting with a trustworthy local lender or housing counselor who can help you understand your real options — without pressure.

Union County is a small, largely rural county in northeastern Mississippi.

The county seat is New Albany, and the local economy is anchored by manufacturing, agriculture, small retail, and service trades.

Many residents work as solo contractors, tradespeople, or in hourly positions — income types that require a little extra documentation but absolutely do qualify for home financing.

**General qualification factors lenders look at:**

- Credit history and credit score

- Stable income (at least 2 years of documented income history is standard)

- Debt-to-income ratio (your monthly debts compared to your monthly income)

- Down payment funds and their source

- Employment or self-employment documentation

**For solo contractors and self-employed borrowers:** Lenders will typically ask for two years of tax returns and may average your income across those years. If your income varies season to season — common in construction, landscaping, and agriculture — a lender experienced with self-employed borrowers can make a real difference.

**For ITIN borrowers:** If you do not have a Social Security Number, an ITIN (Individual Taxpayer Identification Number) may qualify you for a home loan through certain community lenders and credit unions. You will generally need at least one to two years of ITIN tax filing history, steady income, and some down payment funds.

**USDA Rural Development eligibility:** Much of Union County falls within USDA-eligible rural zones. Income limits apply and are adjusted for household size — in this region, the limits are generally modest but accessible to working families. A USDA loan can mean no down payment required, which removes one of the biggest barriers to homeownership.

**First-time buyers:** Mississippi Home Corporation (MHC) programs are available statewide and are especially valuable for first-time buyers in counties like Union where home prices remain relatively affordable, stretching assistance dollars further.

Getting your paperwork organized early saves time and reduces stress during the loan process. Below is a practical checklist of what most lenders will ask for:

**Identity and residency:**

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

- Social Security Number — or ITIN if you do not have an SSN

- Proof of current address (utility bill, lease, or bank statement)

**Income — if you are an employee:**

- Two most recent pay stubs

- W-2 forms for the past two years

- Federal tax returns for the past two years

**Income — if you are self-employed or a contractor:**

- Federal tax returns (personal and business, if applicable) for the past two years

- Profit and loss statement for the current year

- Bank statements for the past 12–24 months

- Any 1099 forms received

**Assets and savings:**

- Bank account statements for the past 2–3 months

- Documentation of any gift funds (a gift letter may be required)

- Retirement or investment account statements, if applicable

**Property:**

- Purchase agreement (once you have one)

- Property address for appraisal purposes

**For ITIN borrowers, also prepare:**

- ITIN letter from the IRS (CP565 notice)

- Two years of ITIN-filed tax returns

- 12–24 months of bank statements

- Proof of consistent housing payment history (rental receipts or landlord letters)

Organizing these in a folder — digital or paper — before you speak with a lender puts you in a stronger position from the first conversation.