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Information and resources for first time home buyer Mississippi programs to assist with the home buying process. If you are a first time homebuyer in Mississippi, the Mississippi Home Corporation may be able to assist you.
The state housing finance authority can connect you with mortgage programs and down payment assistance that can assist with the initial costs of purchasing a home, as well as unique programs for specific types of borrowers. Here is an overview of the agency’s services.
Mississippi First-Time Homebuyer Loan Programs
MHC Smart Solution
Mississippi Home Corporation’s (MHC) Smart Solution program Offers 30-year mortgages with attractive interest rates and reduced mortgage insurance payments.
The available lending alternatives include Freddie Mac (up to 97 percent financing), FHA, VA, and USDA mortgages, which may be combined.
Smart Solution is for first-time and return homebuyers purchasing a single-family home, condominium, townhouse, or duplex in the state. Manufactured homes are also eligible for FHA financing.
Other eligibility requirements include a minimum credit score of 640 and a maximum family income of $95,000.
MHC Mortgage Revenue Bond 7
MHC’s Mortgage Revenue Bond 7 (MRB7) program In addition to a competitive interest rate and down payment help.
This loan is designed for first-time homebuyers, veterans, and individuals looking to purchase a home in a specifically selected target location.
You must satisfy specific requirements, including credit guidelines, dependent on the type of loan you select: Fannie Mae or Freddie Mac, FHA, VA, or USDA.
Similar to the Smart Solution program, you will need to meet county-specific income requirements.
In target areas, the maximum purchase price is $309,000; in non-target areas, the maximum purchase price is $258,000.
Mississippi Down Payment Assistance
As with the majority of programs for first-time homebuyers, MHC’s mortgages and down payment aid are bundled. As long as you meet the first mortgage’s eligibility standards, you will be eligible for the aid.
MHC Smart Solution Second
If you are obtaining a mortgage through MHC’s Smart Solution program.
You can take advantage of the Smart Solution Second down payment assistance, which provides up to 4.5 percent in aid as a second mortgage.
The second mortgage is also a 10-year loan with the same interest rate as the first.
MHC MRB7 Down Payment Assistance
Borrowers can obtain up to $7,000 in a zero-interest, deferred loan through MHC’s MRB7 program to cover closing fees and the down payment. This loan is forgivable when ten years have passed.
MHC Housing Assistance for Teachers
The Housing Assistance for Teachers (HAT) program of MHC offers qualifying teachers a grant for the down payment and closing costs of up to $6,000.
The scholarship is offered to educators in the “important shortage areas” defined by the state: Special Education, Mathematics, Foreign Language, and Science.
The gift will be forgiven if the instructor fulfills the program’s standards, which are as follows:
➣ Teach for at least three years in a school district with a significant teacher shortage.
➣ Acquiring a home in the district’s county of residence
In addition, teachers must contribute at least 1% of their own funds toward the down payment and have at least one month’s worth of savings.
Other Homebuyer Help Programs in Mississippi
Mortgage Credit Certificate (MCC)
A mortgage credit certificate can help Mississippi’s first-time homebuyers reduce their federal income taxes (MCC).
The MCC is a tax credit for up to 40 percent of your annual mortgage interest, up to a maximum of $2,000 per year.
The credit is intended to help you qualify for a mortgage and reduce the overall cost of owning.
In addition to being a first-time purchaser, you must also meet county-specific constraints on household income and purchase price.
Additional Lending Programs for First-time Homebuyers
In addition to state-level help, first-time homebuyers in Mississippi have access to federal financing programs, among other possibilities.
These loans include FHA, VA, and USDA. These types of loans may be suitable for you if you have a low credit score or a modest down payment.
First-time homeowners in Mississippi may also qualify for conventional loans with as little as a 3% down payment.
To learn more, please visit the guide to first-time homebuyer loans and programs on Bankrate.com.
First Time Home Buyer in Mississippi Bottom Line
When you’re ready to purchase your first home, you should contact the Mississippi Home Corporation to learn more about the agency’s inexpensive mortgage alternatives and the qualifications for each.
If you like what you see, you can get in touch with a participating mortgage lender in your area to discuss the next steps.
Regardless of the type of financing you pick, make sure to investigate mortgage rates and offers to ensure you obtain the best rate and conditions available.