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Buying a home costs a lot of money upfront, and the Mississippi Home Corporation offers financial help with a down payment and closing costs in order to give first-time home buyers a boost.
The Mississippi Home Corporation defines a first-time home buyer as someone who has not owned a home in the past three years, although exceptions are sometimes made for veterans and people buying in federally designated target areas where incomes are typically low.
Buyers may also take advantage of national loan programs with low credit score or down payment requirements. Explore all the options for buying your first home in the Magnolia State.
National first-time home buyer programs
These loan programs are available in all states. They allow qualified home buyers to purchase homes with a small down payment — or even with no down payment at all. Loans that require lower down payments are important to many first-time buyers.
Conventional mortgage
Best for:
Low down payments, limited mortgage insurance premiums
What you need to know:
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down.
VA loans
Best for:
Military, low down payments
What you need to know:
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640.
FHA loans
Best for:
Low credit score, low down payments
What you need to know:
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.
USDA loans
Best for:
Low down payments, rural home buyers
What you need to know:
A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards.
Mortgage loans from our partners
Mortgage loans from our partners