Mississippi Down Payment Assistance for Foreclosures

By
Real Estate Agent with Bob Leigh & Assoc., LLC

Mississippi Down Payment Assistance for Foreclosures
by Pam Simpson
The Kudzu Vine

Mississippi Home Corporation (the same non-profit that handles the MS bond money program) has rolled out a program to assist homebuyers in purchasing a foreclosure.

This program is called Home Buyer Advantage

Elgible homebuyers must plan to use the property as their primary residence and must complete an 8-hour homebuyer education class.  The household income cannot exceed 120% AMI (Area Median Income). 

Here is how the income limits break down for Northwest MS counties:

                         1-person          2-person          3-person          4-person          5-person
Desoto:              $48,550           $55,500           $62,400           $69,350           $74,900
Marshall:           $38,900           $44,450           $50,000            $55,550          $60,000
Panola:              $35,200           $40,200           $45,250            $50,300          $54,300
Tate:                 $43,500            $49,750           $55,950            $62,150          $67,150

This grant may be used in connection with an FHA, VA, Rural Development, Fannie Mae or Freddie Mac loan type.  It may also be used with an FHA 203(K) rehab loan, but no escrow or advance of Home Buyer Advantage funds is allowed.

This grant carries a 0% interest and will be forgiven over 5 or 10 years (depending on the grant amount).  The property must be purchased at least 1% below current appriased market value and the purchase price limit is $238,000.

The maximum grant amount is determined by adding (1) the Eligible Community Share; and (2) the amount the homebuyer is eligible for based on their credit score.  The total amount can't exceed $39,999 and can't exceed 50% of the home's sales price.

The maximum assistance on the Eligible Community Share is $14,999.

The maximum assistance on the credit score is:

600 or less:  $2,500
600-625:      $5,750
625-650:      $9,000
650-675:      $12,250
675-700:      $15,500
700-725:      $18,750
725-750:      $22,000
750+:          $25,000 

UPDATE:  New information that just came in -

The grant reservation date starts on Sept. 11, 2009 and the first funding date is Oct. 14, 2009. 

This grant can only be used for 1/2 of the required downpayment, so the buyer will have to come up with the other 1/2.  If you are using a $0 downpayment loan (USDA, VA), this limitation does not apply.  THe rest of the grant funds not used towards downpayment will go towards closing costs and reduction of the loan amount.

Finally, you must be able to qualify for the loan without the grant.  In other words, if you would not normally qualify for the amount of the loan without the grant, you will not qualify for the grant.

Now...is that clear as mud???^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
About the author:   Pam Simpson is an Assoc. Broker with Bob Leigh & Associates, LLC in Northwest MS.  Copyright©  2009 by Pam Simpson.  All rights reserved...***Mississippi Down Payment Assistance for Foreclosures***

FOR BUYERS:  Buying a Foreclosure, Finding a Home, Loan Info, Tax Credit, Interest Rates,
First Time Homebuyer Guide

FOR SELLERS:  Pricing, Selling Tips   

LOCAL COMMUNITY INFO:  Tate County Community, Memphis Community, Southaven Community, Hernando Community

MARKET REPORTS:  Foreclosure Report, Hernando MS Report, Olive Branch MS Report, Tate County MS Report

REALTOR STUFF:  NAR, Real Estate and Media, Real Estate Agents

OTHER:  Rural Life, Breast Cancer Awareness, Angel Food Ministries, Property Rights, Auctions

 Disclaimer:  All information provided by this author may be  based on information collected from several sources and is believed accurate but not guaranteed.

 

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