Mississippi Down Payment Assistance Programs

Mississippi down payment assistance programs
Mississippi down payment assistance programs

Mississippi down payment assistance programs are offered through Mississippi Home Corporation (MHC) in an effort to provide monies to home buyers who are making a purchase of a home for the first time of low- and medium- income homebuyers. The program is offered statewide via MHC-approved lenders.

To be eligible for Mississippi down payment assistance programs, interested homebuyers must meet several standards. These include incomes that do not exceed county limits, meet credit eligibility limits as well as an acceptable credit profile, need, and the completion of an eight-hour homebuyer education class. Applicants must also have less than $ 4,500 in liquid assets. The property must be owner occupied, and must be their primary residence.

The property being purchased must also meet certain qualifications for Mississippi down payment assistance programs. These include being owner occupied, single family attached or single family detached, townhomes or condominiums that are approved, and manufactured homes that are permanently affixed. The MHC will also make determinations as to the appropriateness of homes to meet the standards of the loan programs.

Anyone who wishes to apply for the program should apply through an approved lender who will judge the eligibility of the borrower and submit the application to the MHC, which will make a determination of eligibility and qualification. Since its founding, the program have helped many residents of the state of Mississippi become homeowners who otherwise would not. This includes some of those in greatest need, low- and medium-income persons.

Mississippi Down Payment Assistance Programs

Home Of Your Own Program (HOYO) This Mississippi down payment program targets low income, first time buyers with a disability. The home must be a primary residence and the Mississippi borrower’s credit has to be in good standing. Eligible Mississippi borrowers can qualify for $15,000 in Mississippi down –payment assistance.

Smart Solution Program This Mississippi down payment program is for first time buyers can Mississippi borrowers can get a 30 year, fixed rate mortgage at competitive interest rates. Conventional Mississippi borrowers can put as little as 3 percent Mississippi down and still get low mortgage insurance premiums. However, A minimum credit score of 620 is required for all loans. The home must be the primary residence and Mississippi borrowers cannot earn over $80,000.

Smart Solution Second Program This Mississippi down payment program is for low and moderate income first time home buyers can get Mississippi down payment help for their first mortgages (FHA, VA or RD Mississippi borrowers only) via a second mortgage:10 year, fixed rate at 7 percent with no prepayment penalty. The maximum Mississippi down payment assistance is 3 percent of the loan amount, and the money can be used for Mississippi down payment and closing costs but no pre paid fees. To be eligible, income cannot exceed county limits, and Mississippi borrowers must meet credit requirements. Mississippi borrowers cannot have more than $4,500 in liquid assets.


Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:

No Down Payment Mortgages – mortgages that require no down payment

USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.

 

Low Down Payment Mortgages – mortgages that require up to 3.5% down payment

FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.

Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.

The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.

More places to find assistance on down payment:

HUD Programs

The US Department of Housing and Urban Development (HUD) offers the following programs:

Good Neighbor Next Door Program

The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.

To learn more about the Good Neighbor Next Door Program, click here.

Section 184 Loan – The Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.

Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.

To learn more about Section 184, click here.

Mississippi Housing Agencies

Mississippi housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.