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FHA Loans in Mississippi

Barring the name “The Hospitality State” means Mississippians more than likely take the home buying process very seriously. It has to be just right! While finding the right home can be as big a hit as Mississippi native Elvis Presley, deciding on how to finance it can have you headed for Heartbreak Hotel.

Luckily, an FHA loan in Mississippi is great if it’s your first-time buying a home, or if you simply don’t have enough cash for a traditional down payment. Read the information below to see why a Mississippi FHA loan may be the right option for you.

Why Consider an FHA Loan in Mississippi

With a relatively low population density, Mississippi is great for those looking for some room to grow. Additionally, the average home price is nearly $90,000 less than the national average making it all the more reason to purchase a home. Many Mississippi residents are choosing FHA loans as their mortgage option, and as of April 2019, the total value of FHA loans in Mississippi was $86 million!

Benefits of using FHA Loans

  • FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
  • FHA mortgage rates are typically lower than conventional mortgage rates.
  • FHA down payment and credit score requirements are typically lower than conventional loans
  • Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
  • FHA loans are assumable

FHA Loan Limits in Mississippi

There is a baseline limit of $498,257 in Mississippi. The loan limit is adjusted annually and usually depends on which county you live in, but Mississippi is unique in that the baseline limit applies statewide.

Are You Eligible for an FHA Loan in MS?

You may be eligible for an FHA loan, if you:

  • Have 2 years of steady employment, preferably with the same employer.
  • Have had steady income (or increasing income) in the past two years.
  • Have had less than two 30-day periods of late payments on your credit report.
  • Have declared bankruptcy no less than two years ago and have maintained good credit since.
  • Have not been a party in a foreclosure for at least three years and have maintained good credit since.
  • Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

What Do You Need to Apply for an FHA Loan in MS?

Buyers must be able to provide the following information and documents as requested by lenders:

  • The addresses of all your residences over the past two years.
  • The names of your employers over the past two years.
  • W2's for the past two years and current paycheck stubs.
  • Your current gross monthly salary.
  • Your Social Security Number.
  • Names, addresses, and account numbers with balances on all checking and savings accounts.
  • Addresses and loan information of any other real estate you owned.
  • Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
  • Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.