Mississippi Mortgage Revenue Bond Money Program
by Pam Simpson, Broker-Assoc.
The Kudzu Vine
Ron Withers wrote an informative blog on the Mortgage Bond Revenue Program (HERE) and asked that I contribute information about Mississippi's program.
Mississippi has a Bond Money program to assist first-time homebuyers in the purchase of a home. A "first-time" homebuyer is defined a someone who has not owned a home in the past 3 years. Mississippi Home Corp. does have "target areas" of the state in which the first-time rule is wavied. These target areas are the less developed counties. In Northwest Mississippi, the counties of Marshall, Panola, and Tunica are target areas. Most of the Delta counties are also in a target area.
At one time, Mississippi also had "GO ZONE" areas (Gulf Opportunity Zone Act of 2005) which had different income and sales price limits. I am at the opposite end of the state. Perhaps someone from the GULF AREA can enlighten us about the opportunities there.
The Bond Program offers buyers a cash advance for downpayment and closing costs (not prepaids) equal to 3% of the full loan amount. It can be used with FHA, VA, Rural Development or conventional Fannie Mae insured mortgage loan programs.
Program requirements include:
- Property must be owner-occupied
- Property must be principal residence
- Single family detached or fee simple townhome
- Condos that are VA, FHA or conventional approved
- Permanently affixed manufactured homes that meet FHA, VA, RD or Fannie Mae requirements
The property sales price in Non-Target areas can't exceed $237,031 and in Target areas $289,705.
There is a $200 non-refundable reservation fee to participate.
The program does have income limits which are set according to the county. For the counties I service, here are the numbers:
Desoto: $54,400 (1-2 family) $62,560 (3+ family)
Marshall: $51,840 $60,480
Panola: $51,840 $60,480
Tate: $47,700 $54,855
Another great program that Mississippi Home Corp. offers is the HAT (Housing Assistance for Teachers) program. I have had several first-time homebuyers who are teachers use this. This program provides up to $6,000 in downpayment and closing costs assistance for Mississippi certified public school teachers who agree to teach in select areas of the state. It is a promissory note that is converted to an interest-free grant if the borrower teaches for at least 3 years in an underserved school district. It can be combined with the Bond program.
For all the specifics of all the programs that Mississippi Home Corp. offers, go the their website at www.mshomecorp.com.
Pam Simpson, Broker-Assoc.
www.MShomeinfo.com
Comments(1)