April 13, 2021

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Mississippi First-Time Homebuyer Assistance Programs

If you are one First time buyer In Mississippi, you may be eligible for assistance from the Mississippi Home Corporation. The state housing finance agency can connect you to mortgage programs and Advance payment assistance This can help with the upfront home purchase costs and also offers specific programs for certain types of borrowers. Here you can see what the agency has to offer.

Mississippi First Time Buyer Loan Programs

MHC Smart Solution

Mississippi Home Corporation’s (MHC) Smart Solution program offers competitive 30 year mortgages with lower mortgage insurance premiums. Loan options include Freddie Mac (up to 97 percent funding), FHA, VA, and USDA mortgages that can be combined with down payment support funds.

Smart Solution is intended for first time and repeat buyers buying a home in the state, either a single family home, condo, townhouse, or duplex. Prefabricated houses are also allowed with an FHA loan. Additional eligibility requirements are a minimum credit value of 640 and a household income of no more than $ 95,000.

MHC Mortgage Revenue Bond 7

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

As with the Smart Solution program, you need to be within Income limits, but these differ depending on the county. There are also purchase price limits: if the home is in a target area, the limit is $ 309,000; In a non-target area, it’s $ 258,000.

Mississippi Down Payment Assistance

As with most first-time buyer programs, MHC’s mortgage and down payment assistance are combined. As long as you qualify for the first mortgage, you are entitled to assistance.

MHC Smart Solution Second

If you borrow a mortgage through MHC’s Smart Solution program, you can use the Smart Solution Second down payment aid, which offers up to 3.5 percent help as a second mortgage. The second mortgage is a 10 year loan with the same interest rate as your first mortgage.

MHC MRB7 deposit assistance

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

MHC Housing Assistance for teachers

MHC’s HAT (Housing Assistance for Teachers) program provides eligible teachers with a grant of up to $ 6,000 for down payment and graduation costs. The grant is available to teachers teaching in the subjects designated by the state as “critical deficiency”: special education, math, foreign language and science. The scholarship is awarded as long as the teacher meets the requirements of the program, which include:

  • Teaches in a school district with critical deficiency for at least three years
  • Buy a home in the county where the district is located

In addition, teachers must contribute at least 1 percent of their own funds to the down payment and have at least one month in reserve.

Other aid programs for Mississippi homebuyers

Mortgage Loan Certificate (MCC)

First time buyers in Mississippi can lower their federal income taxes through a Mortgage Loan Certificate (MCC). The Client Center is a tax credit of up to 40 percent of your annual mortgage interest, up to $ 2,000 per year. The idea is that the loan can help you qualify for a mortgage and make home ownership more affordable for you overall.

Not only do you need to be a first-time homebuyer, you need to learn about the household Income limitswhich vary by state and purchase price limits: $ 309,000 in a target area and $ 258,000 in a non-target area.

Other first-time buyer loan programs

First-time buyers in Mississippi have other options in addition to government assistance, including government loan programs. These include FHA, VA, or USDA loans. If you have a lower credit score or a lower down payment, these types of loans could work for you.

Conventional loans are also available to first-time buyers in Mississippi, some for as little as 3 percent less. Go to Bankrate Loans and Programs for First Time Buyers Guide to learn more.

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

Getting started

When you’re ready to buy your first home, start with Mississippi Home Corporation to learn about the agency’s affordable mortgage options and their specific requirements. If you like what you see, you can connect with a participant Mortgage lender in your area to determine next steps. Regardless of what type of funding you ultimately choose, you should do your research Mortgage rates and deals to ensure you find the best rate and conditions available.

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