MS Affordable Housing Development Fund

The Mississippi Affordable Housing Development Fund (Revolving Loan Fund) was established by the State of Mississippi to help finance housing for low to moderate income households.

Eligible Borrowers:

  • Nonprofit Corporations, Partnerships, For-Profit Corporations, Public Housing Authorities, Planning and Development Districts, and Limited Equity Cooperatives. Individuals are not eligible.


Use of Funds:

  • Construction loans for new owner-occupied or rental housing.
  • Pre-development, site control, site development.
  • Rehabilitation loans for owner-occupied and rental properties.


Program Priorities:

  • Project that address elderly housing
  • Projects involving combination of nonprofit organizations with for profit partners and investors.
  • Projects that empower low-to-moderate income families through resident management, self-help housing, selfsufficiency activities designed to increase household incomes, or similar programs meeting critical housing needs.
  • Projects designed to access FNMA, FHLMC, or other secondary mortgage markets and requiring commitments of funds from the RLF for 7 years or less.


Loan Terms:

Rate: Rates as low as 3.0%.
Term: Development 3 years
Acquisition/Rehab 7 years
New Construction 7 years
Amortization: Negotiable. Can include loans that are fully or partially amortized. Balloon, interest only, or deferred interest with balloon will be considered. A letter of credit may be required.
Loan to Value: For-profit 80%, Non-profit 90% ( in some cases 95%), using the lesser of the sales or appraised value of the asset being considered.
Debt Service Coverage: (for rental projects) Minimum debt service coverage of 1.05:1.00
Security: 1st Lien Position only.
Prepayment: Loans may be prepaid at any time, with no prepayment penalties.
Assumability: Assumable upon approval of MHC.

Need Assistance?

For more information or questions about MS Affordable Housing Development Fund, contact the Mississippi Home Corporation at 601.718.4642.


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