Mississippi Home Buyer Advantage Program Guide

Guide to the Mississippi Home Buyer Advantage Program

The Mississippi Home Buyer Advantage Program is designed to assist eligible buyers with purchasing a home by providing financial support for down payments and closing costs. This program aims to make homeownership more accessible for first-time homebuyers and repeat buyers by offering competitive loan terms and down payment assistance. Updated for 2025, this program continues to help individuals and families in Mississippi achieve their homeownership goals. Below is an overview of the program, eligibility requirements, and the steps to apply.

1. Program Overview:

• Purpose: The Mississippi Home Buyer Advantage Program provides financial assistance to homebuyers in Mississippi, helping them cover the cost of down payments and closing costs. The program is available to first-time homebuyers and qualifying repeat buyers.
• Assistance Amount: The program offers up to $10,000 in down payment and closing cost assistance. This support makes it easier for buyers to afford a home without a large upfront cost.
• Loan Terms: The program offers low-interest, fixed-rate loans. The loan term can extend up to 30 years, helping to keep monthly payments affordable over the long term.

2. Eligibility Requirements for 2025:

To qualify for the Mississippi Home Buyer Advantage Program, applicants must meet the following criteria:

• Income Limits: The program is available to homebuyers who meet specific income limits, which vary based on household size and the location of the property. These limits are updated annually to reflect the current market conditions and cost of living.
• Credit Score: A minimum credit score of 640 is typically required. Other factors such as debt-to-income ratio may also be considered during the application process.
• First-Time or Repeat Homebuyer: The program is available to first-time homebuyers, defined as individuals who have not owned a home in the last three years. Repeat buyers who meet the income and credit requirements may also be eligible.
• Property Requirements: The home being purchased must be located in Mississippi and must serve as the applicant’s primary residence. There are price limits for the home to ensure the property is affordable for moderate-income buyers.
• Homebuyer Education: All applicants are required to complete a homebuyer education course. This course helps prepare buyers for the responsibilities of homeownership, including understanding the mortgage process and budgeting effectively.

3. How to Apply:

To apply for the Mississippi Home Buyer Advantage Program, follow these steps:

• Find a Participating Lender: The program works with a network of approved lenders who will assist you in determining your eligibility and guide you through the application process. You must contact one of these lenders to start your application.
• Required Documentation: Be prepared to submit documentation such as proof of income, tax returns, credit history, and a certificate of completion from the homebuyer education course.
• Submit Your Application: After gathering all required documentation, submit your application to your participating lender. They will evaluate your eligibility and guide you through the next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: Applicants must complete an approved homebuyer education course before applying for the program. This ensures that buyers are well-prepared for the responsibilities of homeownership.
• Course Options: The course is available online and in-person. Upon completion, you will receive a certificate, which is necessary for your loan application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The Mississippi Home Buyer Advantage Program offers up to $10,000 in assistance for down payments and closing costs. This helps reduce the financial burden of purchasing a home and makes it easier for buyers to get into their new home.
• Loan Terms: The assistance is provided as a second mortgage with deferred payments. This means there are no monthly payments due during the term, and the loan is repaid when the home is sold, refinanced, or the first mortgage is paid off.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your lender will help you understand the next steps, including signing the loan documents and preparing for the closing process.
• Closing Costs: While the program covers down payment and closing cost assistance, buyers may still be responsible for other fees. Your lender will provide a breakdown of all fees involved in the home purchase.

Our experienced loan officers are dedicated to making your home buying experience as smooth as possible. From the initial application to the final closing, they will be with you every step of the way, ensuring you fully understand the process and are supported throughout. The Mississippi Home Buyer Advantage Program is designed to help you achieve your dream of homeownership in 2025.