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