First-Time Homebuyer Assistance Programs for 2024 in Mississippi

Last Updated on August 23, 2023 by Hannah Stevens

Mortgage Assistance for Homebuyers in Mississippi

Mortgage Revenue Bond

The down payment is a major obstacle to homeownership. Although many people are able to afford monthly mortgage payments, they might not have enough money to cover the upfront costs. So, the Mississippi Home Corporation offers low interest rates and down payment assistance through the proceeds from the sale of Mortgage Revenue Bonds.

Available Assistance

Besides competitive interest rates, Mortgage Revenue Bonds provides qualified first-time homebuyers assistance up to 3.5% of the purchase price as down payment and/or closing costs assistance. Then, these funds may be received as a cash loan or a second mortgage.

Eligibility Requirements

All applicants must meet specific requirements to be eligible for Mortgage Revenue Bonds. They must be first-time homebuyers. Therefore, they must not have owned a principal interest in a residence for the last three years. There are exceptions, however, if they reside in “Target Areas.” Moreover, applicants need to comply with the credit requirements set by FHA, VA, Rural Development, Freddie Mac and FannieMae products. They must also be legal U.S. citizens whose annual household income is within the program’s limits.

Property Guidelines

The purchased home must be the applicant’s primary residence and located in Mississippi. It also has to fall below the maximum county purchase price. The eligible property types are new or existing single-family homes, townhouses, condominiums, or manufactured homes permanently attached to land.

This programme is quite different to the First-Time Homebuyer Assistance Programs in Minnesota, Mississippi has chosen to go at a different path.

Smart Solution

The down payment is a major obstacle to homeownership. Although many people are able to afford monthly mortgage payments, they might not have enough money to cover the upfront costs. Therefore, the Mississippi Home Corporation created the Smart Solution program to help people overcome this problem.

Available Assistance

Smart Solution offers qualified applicants up to 3% as down payment assistance in addition to competitive interest rates. These funds may come as a cash advance, or a second mortgage with the same rate as the first and a 10-year term.

Eligibility Requirements

Applicants must meet specific criteria to be eligible for Smart Solution. All borrowers must also be legal U.S. citizens. Additionally, they must have at least 640 of credit score, and an annual household income of no more than $95,000.

Property Guidelines

The Smart Solution program requires that a home be used as the applicant’s primary residence, and is located in Mississippi. Single-family homes, townhouses, condominiums, or manufactured homes using FHA funding are eligible property types.

The main goal of this program is to provide financial assistance to qualified applicants who are interested in purchasing a home, but cannot afford the down payment, closing costs, and prepaid items needed to gain homeownership. These costs can be significant, and people might find themselves stuck in a renters’ trap if they are unable to pay them.

Mississippi First-Time Homebuyer Programs

When first-time homebuyers in Mississippi start looking for loans, they have many options, including FHA, USDA and VA loans.

FHA Loans

The Federal Housing Administration insures FHA loans and protects lenders against financial risk. Additionally, the 3.5% down payment requirement makes these loans a viable option to young homebuyers who don’t have the time or credit history to save for large down payments.

Conventional Mortgage 

Conventional loans are mortgages that are not guaranteed by the government (such as FHA). These mortgages may have fixed or adjustable rates and require a down payment of at least 20%. Conventional loans can also conform to Freddie Mac and Fannie Mae guidelines. Any agency can also back these “conforming” loans.

VA Loans

You can access the VA Home Loans through the Veterans Affairs Department. They are available to eligible spouses, veterans and service members. Additionally, these loans have a low interest rate and are available to all qualified borrowers for no money down.

USDA Loans

USDA-backed mortgages are provided by the USDA’s Rural Department of the United States Department of Agriculture (USDA). This department aims to create healthy, sustainable rural communities. You can use these loans to help low- and moderate income residents get affordable housing.

Are you interested in the First-Time Homebuyer Assistance Programs in Missouri?