Down Payment Assistance Program

A major stumbling block for Mississippians today when trying to acquire a safe, decent, and affordable home is finding cash for downpayment and closing costs.

Sensitive to the need for a program to ease the initial financial burden of home ownership, the Mississippi Home Corporation developed a Down Payment Assistance Program for low to moderate income first-time homebuyers. The program is available statewide and must be originated through a MHC participating lender.

Features of the Down Payment Assistance Program:

• (1st Mortgage) FHA, VA, or RD qualifying guidelines.
• (2nd Mortgage) 10-year fixed rate of 7%, no prepayment penalty.
• Maximum down payment assistance is 3% of loan amount (not sales price).
• Sales price of property being purchased or built must be at or below $198,000.
• Down payment assistance can be used for down payment and closing costs (no pre-paid fees).
  

Who is Eligible:

• First-time homebuyers with low to moderate income not to exceed County Income Limits.
• Applicants who meet the credit eligibility requirements.
• Acceptable credit profile.
• Need for a low down payment second mortgage.
• Applicant who has successfully completed an 8-hour homebuyer education class.

Program Requirements:

• Household incomes do not exceed the program’s income limits.
• Applicants with no more than $4,500 in liquid assets.
• Property must be owner occupied.
• Property must be primary residence.

Credit History

• FHA, VA, or RD guidelines apply to each such mortgage originated under this product.
• Qualifying Ratios: FHA, VA or RD qualifying ratios for 15, 20, 25 or 30 year loan.

Property Requirements:

• Owner occupied.
• Single family detached.
• Single family attached.
• Approved townhomes or condominiums.
• Permanently affixed manufactured homes.

For more information contact Ruthie Bilal.