Mississippi First-Time Home Buyers Assistance Programs

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If you are a first-time buyer in Mississippi, you may be eligible for assistance from the Mississippi Home Corporation. The public housing finance authority can put you in touch with mortgage programs and down payment assistance which can help pay the initial costs of buying a home, and also offers special programs for certain types of borrowers. Here is an overview of what the agency has to offer.

Mississippi First-Time Buyer Loan Programs

Smart MHC solution

Mississippi Home Corporation’s (MHC) Smart Solution Program offers 30-year mortgages at competitive rates and lower mortgage insurance premiums. Loan options include Freddie Mac (up to 97 percent financing), FHA, VA, and USDA mortgages, which can be combined with down payment assistance funds.

Smart Solution is for first-time home buyers and regular home buyers who purchase a home in the state, whether it’s a single-family home, condominium, townhouse, or home. ‘a duplex. Manufactured homes are also permitted with an FHA loan. Other eligibility requirements include a minimum credit score of 640 and a family income not exceeding $ 95,000.

MHC Mortgage Income Obligation 7

MHC’s Mortgage Revenue Bond 7 (MRB7) program also comes with a competitive interest rate and down payment assistance, but is aimed at first-time homebuyers, veterans, or those who are considering purchasing a home in a specially designated target area. You will need to meet certain criteria, including credit guidelines, which are based on the loan you choose: Fannie Mae or Freddie Mac, FHA, VA, or USDA.

Like the Smart Solution program, you will need to be in income limits, but these differ by county. There are also purchase price limits: if the house is in a target area, the limit is $ 309,000; in an untargeted area, it’s $ 258,000.

Mississippi Down Payment Assistance

Like most first-time home buyers, mortgage loans and MHC down payment assistance are combined. As long as you meet the eligibility requirements for the first mortgage, you will be eligible for assistance.

Second intelligent MHC solution

If you borrow a mortgage from MHC’s Smart Solution program, you can take advantage of the Smart Solution second down payment assistance, which offers assistance of up to 3.5% as that second mortgage. The second mortgage is a 10-year loan at the same rate as your first mortgage.

MHC MRB7 down payment assistance

Through MHC’s MRB7 program, borrowers can receive up to $ 7,000 in the form of a zero-interest deferred loan to help cover closing costs and the down payment. This loan is repayable after 10 years.

MHC housing assistance for teachers

MHC’s Teacher Housing Assistance Program (HAT) provides a grant to eligible teachers of up to $ 6,000 for down payment and closing costs. The grant is available to teachers who teach in what the state has identified as “critical shortage subjects”: special education, math, foreign languages, and science. The grant will be forfeited as long as the teacher meets the requirements of the program, including:

  • Teach for at least three years in a critical shortage school district
  • Buy a house in the county where the district is located

In addition, teachers will need to contribute at least 1 percent of their own funds to the down payment and have at least one month of reserves.

Other Mississippi Homebuyer Assistance Programs

Mortgage Credit Certificate (CMC)

First-time homebuyers in Mississippi can lower their federal income tax with a mortgage loan certificate (MCC). The MCC is a tax credit of up to 40% of your annual mortgage interest, to a maximum of $ 2,000 per year. The idea is that credit can help you qualify for a mortgage and make home ownership more affordable for you overall.

In addition to being a first-time home buyer, you will also need to meet income limits, which vary by county and purchase price limits: $ 309,000 in a target area and $ 258,000 in a non-target area.

Other first-time home purchase loan programs

First-time homebuyers in Mississippi have other options besides state-level assistance, including government loan programs. These include FHA, VA or USDA loans. If your credit score or down payment is lower, these types of loans may be right for you.

Conventional loans are also available for first-time home buyers in Mississippi, some for as little as 3% less. Meet at Bankrate first-time home purchase loans and programs guide to learn more.

For other Mississippi home ownership programs, visit HUD.gov.

To start

When you’re ready to buy your first home, consider starting with the Mississippi Home Corporation to learn more about the agency’s affordable mortgage options and specific requirements for each. If you like what you see you can connect with a participant mortgage lender in your area to determine next steps. Whatever type of financing you ultimately choose, be sure to research mortgage rates and offers to make sure you find the best rate and conditions available.

Neighboring State Homeownership Programs

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