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.