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Mississippi Home Loan

There are many channels to consider in securing a Mississippi home loan, including state aid.

Conventional mortgage services can offer help with a Mississippi home loan.  [©Jupiter Images, 2010]
©Jupiter Images, 2010
Conventional mortgage services can offer help with a Mississippi home loan.

Mississippi Home Loan

Mississippians have numerous options when looking for a Mississippi home loan. In addition to conventional loans, there are various loan options available through funding provided by the state government. Loans vary according to income, credit and location. Some loans are designed specifically for organizations or corporations that are directly involved in creating community housing.

Conventional Loans

BancorpSouth offers a wide variety of conventional mortgages to qualified applicants, including:

  • Fixed rate mortgages of 10, 15, 20, 25 or 30 years
  • Adjustable rate mortgages with fixed rates for one, three or five years
  • Balloon mortgages
  • Buy downs
  • Less-than-perfect credit loans
  • Construction permanent loans

All of the mortgages listed have varying interest rates that may fluctuate depending on the prevailing market and the borrower's credit. Fixed rate mortgages allow the borrower to pay a fixed interest rate for the life of the mortgage. Adjustable rate mortgages are loans that offer a lower initial interest rate, which adjusts after a period of time. Balloon mortgages are fixed for a certain number of years, but then require payment in full. A buy down mortgage allows the borrower to pay a portion of the loans interest in advance in order to temporarily or permanently lower the rate of the loan. Less-than-perfect credit loans provide mortgages to borrowers who may have suffered some scars on their credit record. Finally, the construction permanent loan is available for borrowers who seek to convert a bank construction loan into a mortgage.

Housing Assistance for Teachers (HAT)

The HAT program was created in response to concerns regarding a shortage of teachers in rural Mississippi. Through this program, teachers who agree to teach in a targeted, high need school for three years may be eligible for state assistance. The first feature of this program involves the conversion of a promissory note to an interest free grant. The program also allows teachers with good credit to receive up to $6,000 in funds to pay costs associated with closing on a home. In addition, funds are available to assist with the down payment and other pre-paid expenses. Borrowers must provide a down payment of at least one percent of the sale price. There are no income limits on this program; however, homes must be located in targeted counties.

HOYO Project

The HOYO project is a Home of Your Own Program sponsored by the Institute of Disability Studies at the University of Southern Mississippi. This program provides help for people with disabilities who are on the path towards home ownership. There are several eligibility criteria that must be met in order to qualify, including:

  • Borrowers or family members of borrowers must have a disability recognized by the Americans with Disabilities Act
  • The borrower must have an income adequate enough to pay the mortgage and other monthly expenses
  • The borrower must meet standards for a low income
  • The borrower must provide evidence of good credit

Prospective borrowers who meet the eligibility requirements may qualify for up to $15,000 in assistance.

Habitat Loan Purchase Program

The Mississippi Home Corporation established the Habitat Loan Purchase Program to assist state affiliates of Habitat for Humanity. This program functions by purchasing loans that the Habitat for Humanity affiliate has provided to borrowers. In order to qualify, borrowers must meet certain requirements. First, they must not earn more than 80 percent of the median income for the State of Mississippi. In addition, borrowers may not have owned a home within three years prior to the closing date of the mortgage for the Habitat home. Loans can be taken for up to 100 percent of the property value and have loan terms of 30 years. All loans have a zero percent interest rate.

Mortgage Revenue Bond

Mortgage Revenue Bonds are used by the Mississippi Home Corporation to reduce the costs associate with owning a home. Eligible borrowers include first-time homebuyers or people who have not owned a home within the last three years. Notably, some targeted areas are exempt from the first-time homebuyer requirements. Also, borrowers may become eligible if they fall within certain income guidelines for the county in which the home rests and they meet the credit standards determined by the Federal Housing Authority, the Veterans Administration, Rural Development or Fannie Mae Community Lending Products.

Mississippi Affordable Housing Development Fund

The Mississippi Affordable Housing Development Fund is a revolving loan fund that was created by the state of Mississippi to assist lower and middle-income families obtain financing for housing. This program provides loans to nonprofits, partnerships, for-profit, public housing authorities, planning and development districts, and limited equity cooperatives. The program focuses on providing loans to groups that provide elderly housing or housing that encourages self-sufficiency in low and middle-income families. The maximum loan amount available is $500,000 and interest rates on these loans may be as low as three percent.

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