Mortgage in Mississippi

With some of the most affordable housing in the nation, Mississippi is becoming a consideration for individuals looking to pay less in housing than in some more expensive states. You can get a beautiful home with plenty of land for the same price as a condo in a place like New York. The average home price was recently a mere $126,000 - a far cry from the many hundreds of thousands that other states require for housing. You can get a sense of just how affordable Mississippi is with our Mississippi mortgage calculator.

Mississippi Mortgage Calculator: You Have Plenty of Loan Options!

Whether you're looking to move to Mississippi or you're looking to move within the state, you should know that you have three loan choices.

  • Mississippi conventional mortgage: Since Mississippi housing is relatively inexpensive, most people can get a conforming loan. This classification means that buyers can get a home or a condo with as little as 3% down. You will need a credit score above 620 to qualify.
  • Mississippi FHA mortgage: Many people in Mississippi elect to take an FHA loan because of how many properties fall under the maximum limits. An FHA loan lets borrowers put as little as 3.5% down. To put that small amount down, you'll need a credit score of 580 or higher. But, if you can put 10% down, you can get away with a credit score as low as 500.
  • Mississippi VA mortgage: Active and former military members can get a VA-backed loan with as little as 0% down, and there is no private mortgage insurance! If you have served in the U.S. military, these loans are often your best bet.

Despite Mississippi's relative affordability, you will still need to have a down payment (unless you are getting a VA loan). Fortunately, the state has a few programs to assist with that!

First-Time Homebuyers in Mississippi

The Mississippi Home Corporation offers four programs for first-time homebuyers in the state.

Smart Solution

Smart Solution offers a 97% LTV mortgage with lower insurance premiums than other mortgage products. It comes with a second mortgage for the 3.5% down payment, and the rate on the second loan is the same as the first.

Eligibility Criteria: This program has income limitations. The home must be the borrower's primary residence. A minimum credit score of 640 is necessary for approval.

MRB 7

This program offers a 30-year fixed-rate mortgage with a $7,000 deferred 10-year second mortgage at 0% interest. If the borrower lives in the home for ten years, the state will forgive the loan's full amount.

Eligibility Criteria: Borrowers must meet credit requirements, and there are income limitations.

Mortgage Credit Certificate

The mortgage credit certificate lets borrowers claim 40% of the mortgage interest they pay per year as a non-refundable tax credit, up to a maximum of 20%.

Eligibility Criteria: Income and property price limitations apply for this program.

Housing Assistance for Teachers

Teachers can receive up to $6,000 in closing cost assistance towards their home.

Eligibility Criteria: Borrower must be a teacher. The property must be within the same county that employs the teacher. Additionally, it must be a county designated by the MS Department of Education as a critical shortage school district.

Mississippi Mortgage Calculator: Moving Might Save You Money

With relatively low housing costs, making a move to Mississippi could positively impact your pocketbook. Use our Mississippi mortgage calculator to see how much you could save!

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