Mississippi - Government Backed Loans

The Mississippi Home Corporation (MHC) was created by the Mississippi Home Corporation act of 1989 to address these housing needs. MHC plays a critical role in these efforts working with the Governor, the Mississippi Legislature, the U.S. Congressional delegation, and others in the affordable housing industry to develop private and public partnerships throughout the state and nation to increase the awareness of Mississippi's desperate need for affordable housing.

Purchase Programs

Housing Assistance for Teachers - HAT

The Housing Assistance for Teachers program was created as a positive approach to the critical shortage of qualified teachers in rural Mississippi. HAT provides eligible homebuyers assistance in the form of an interest-free grant up to $6, 000 in amount, which is to be used toward down payment, closing costs and Private Mortgage Insurance. Grant receivers must provide a minimum 1% of the home's purchase price to be used as downpayment funds. This grant is to be used in conjunction with a 25- or 30-year fixed-rate mortgage loan, which is provided through the HAT program.

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Habitat Loan Purchase Program

The Habitat Loan Purchase Program was created in order to provide a funding source for the Mississippi based affiliates of Habitat for Humanity. Local affiliates of Habitat for Humanity work together with the Mississippi Home Corporation to create homeownership opportunities for low-income families in the form of a 30-year, interest-free mortgage loan. In order to qualify, borrowers must not earn more than 80% of the state's median income and must also be a first-time homebuyer, or have not owned a home in the past 3 years.

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Mortgage Revenue Bond

The Mortgage Revenue Bond program works to provide first-time homebuyers with a 30-year fixed-rate mortgage loan. A cash advance is granted to qualifying borrowers in order to cover the costs of the origination fee, closing and down payment, as well as a competitive mortgage rate.

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Mortgage Credit Certificate

The Mortgage Credit Certificate program reduces the amount of Federal income tax a borrower pays, therefore freeing up more of the borrower's own funds and making homeownership more affordable. A Mortgage Credit Certificate allows borrowers to a tax credit equal to 25% of the annual interest paid on the mortgage loan, making it a dollar-for-dollar reduction of an individual's Federal tax liability. Homebuyers must fall within designated income limits in order to qualify.

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Down Payment Assistance Program

Designed to assist homebuyers in purchasing their first home, the Down Payment Assistance Program offers low- to moderate-income homebuyers assistance in the form of a first fixed-rate, low-interest mortgage loan such as a FHA, VA or RD loan. This first loan is to be used in conjunction with a second, 10-year, deferred-payment loan to cover down payment and closing costs in the amount of 3% of the first mortgage loan.

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