Mississippi Mortgage Overview
The median home value in Mississippi is
$119,000 making it a great place for first-time homebuyers to settle down.
Mississippi has a population of 2.9 million and 68 percent of the homes are
owner-occupied.
If you're thinking of buying a home in
Mississippi, here are the top loan programs available.
Mississippi FHA loans
FHA loans are for
borrowers with less than perfect credit. You need just a 580 credit score and a
45 percent debt ratio to qualify. With a 580 credit score, you can put down
just 3.5 percent and secure a loan. FHA loans have flexible underwriting
guidelines and in exchange charge mortgage insurance for the life of the loan.
If you have a 500 - 579 credit score, if you put 10 percent down you may still
qualify.
Mississippi VA loans
Veterans have a great
program available from the VA. The 100 percent loan requires just a 620 credit
score if you served at least 181 days in the military in peacetime or 90 days
during wartime. The VA requires only that you prove you can afford your debts
and the daily cost of living. The guidelines are flexible and closing costs are
low. VA loans also don't charge mortgage insurance, which is another benefit
for veterans.
Mississippi USDA loans
If living in a rural
area of Mississippi excites you, the USDA loan may be a good option. The loan
program is for low to moderate-income families. If you don't qualify for any
other loan program, the USDA loan may be a good option. You don't need a down
payment and only need a 640 credit score to qualify. USDA loans charge mortgage
insurance for the life of the loan, but the rates are low.
Mississippi conventional loans
Conventional loans
are for borrowers with great credit and low debt ratios. You need a 660+ credit
score to qualify. First-time homebuyers need just a 3 percent down payment, but
subsequent homebuyers need a 5 percent down payment. Conventional loans charge
Private Mortgage Insurance if you put down less than 20 percent, but only until
you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Mississippi
Smart Solution
If your household income is
less than $95,000, the Smart Solution
may be an option. Borrowers need just 3 percent down and will receive below-market
interest rates. You can also get down payment assistance which is available as
a 10-year second mortgage.
MRB7
The MRB7
program is a first-time homebuyer program that is a 30-year fixed mortgage,
but includes $7,000 in down payment assistance. The down payment assistance is
a 10-year mortgage at 0 percent interest. It's forgiven after 10 years. The
qualifying requirements vary by county but all buyers must be first-time
homebuyers.
Mortgage Credit Certificate
A MCC lowers your
tax liabilities by as much as 40 percent of the interest paid on your mortgage
up to $2,000 per year. You can still claim the remaining interest on your tax
returns as a mortgage interest deduction too.
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