Housing Assistance & Grants

If you think all the programs & grants are cut in purchasing a home, think twice, here are mortgage programs still available for you…

Click here to see if you should buy or continue to rent:

BUY VS RENT

***JUST IN****

Home Loan Plus Program

The Mississippi Development Authority(MDA), Community Services Division will provide Mississippi Home Corporation (MHC) HOME funds to provide grants up to $14,999 to qualified low income individuals to purchase homes. Funds available for this grant are approximately $1.6 million.

Important Facts

  • Property must meet local codes, zoning ordinances and the standards set forth in the Section 8 Housing Quality Standards and the International Residential Code by the International Code Council and the current Model Energy Code published by the Council of American Building Officials.
  • May be used with FHA, VA, USDA-RHS, and approved Fannie Mae or Freddie Mac 30-year conventional loan with Private Mortgage Insurer. (can be use w/203K)
  • City of Jackson, City of Hattiesburg, and all of Harrison County are not eligible.
  • May be used with MHC’s Mortgage Revenue Bond Program (MRB)
  • Open to current homeowners, as well as first time homebuyers
  • Must qualify to purchase property by permanent fixed-rate mortgage through a MHC approved lender (not credit score driven, but must be approved for mtg)
  • Only site-built, single family homes, condos and town homes qualify

Income Limits (depending on location below is HINDS, RANKIN, & MADISON)

Household Size: 1
Income Limit: $32,150.00
Household Size: 4
Income Limit: $45,900.00
Household Size: 8
Income Limit: $60,600.00

***Maximum household is 8 call us for different household and more info..

Tax Credit Closing Date Extension/Flood Insurance Extension

From NAR June 30, 2010 – After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623). The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed. The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010.  There is will be no gap between June 30 and the date the President signs the bill into law.

NAR worked closely with Congressional leaders on both sides of the aisle toenact this important legislation. Extending the Tax Credit Closing deadline will help provide additional stability to real estate markets across the nation.

For additional information on the extension visit
www.realtor.org/government_affairs

Additionally, the United States Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010.  This will allow transactions to move forward.  The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.

For more information on the flood insurance program visit
www.realtor.org/government_affairs

MORTGAGE PROGRAMS

1. Mortgage Revenue Bond
revised 02.06.07

The Mississippi Home Corporation, through proceeds from the sale of Mortgage Revenue Bonds, is able to reduce home ownership costs. The interest on the bonds is exempt from federal taxes which allows MHC to offer borrowers a competitive mortgage loan rate and a cash advance to assist with allowable closing costs and down payment. The program is available statewide and must be originated through a MHC participating lender
Features of the Bond Program

  • 30 year fixed rate (Rate to be determined with each issue.)
  • FHA insured, VA, Rural Development and Conventional Loans.
  • Cash advance for origination fee, closing costs and down payment.

2. Down Payment Assistance Program

A major stumbling block for Mississippians today when trying to acquire a safe, decent, and affordable home is finding cash for downpayment and closing costs.

Sensitive to the need for a program to ease the initial financial burden of home ownership, the Mississippi Home Corporation developed a Down Payment Assistance Program for low to moderate income first-time homebuyers. The program is available statewide and must be originated through a MHC participating lender.

Features of the Down Payment Assistance Program:

  • (1st Mortgage) FHA, VA, or RD qualifying guidelines.
  • (2nd Mortgage) 10-year fixed rate (rate will match the 1st mortgage rate set by the lender), no prepayment penalty.
  • Maximum down payment assistance is 3% of loan amount (not sales price).
  • Sales price of property being purchased or built must be at or below $198,000.
  • Down payment assistance can be used for down payment and closing costs (no pre-paid fees).

3. Mortgage Credit Certificate

The Mortgage Credit Certificate (MCC) reduces the amount of federal income tax the borrower must pay, which in turn, frees up income to qualify for a mortgage. Homebuyers must not exceed household income and home purchase price limits set according to federal tax law and MHC guidelines.

The federal government allows every homebuyer to claim an itemized federal income tax deduction for all of the mortgage interest paid each year on a mortgage loan. The MCC will allow the borrower to take a tax credit equal to 25% of the annual interest paid on the mortgage loan for a single family conventional residence and 40% on a manufactured single family home. That is a dollar-for-dollar reduction of their federal tax liability. The remainder (75% conventional, 60% manufactured home) of the mortgage interest will continue to qualify as an itemized tax deduction. The specific dollar amount of the tax credit depends on how much interest the borrower pays on a mortgage loan. The amount of the credit cannot be more than their annual federal income tax liability after all other credits and deductions have been taken into account. In no case can the tax credit exceed $2,000 per year.
To receive an immediate benefit from the MCC, the borrower must file a revised W-4 withholding form with their employer, which should reduce their yearly tax contribution and increase the borrower’s take-home pay, or take the benefit once a year through the federal income tax return to be filed.

Features of the MCC Program

Lender follows guidelines depending upon which type of loan is utilized.
MCC can be used with 30-Year Fannie Mae conventional, fixed-rate, adjustable rate, FHA, VA, and RD financing. (MCCs are not available with MHC Bond financing.)

4. HAT Program (Housing Assistance for Teachers)

In rural Mississippi there exists a critical shortage of qualified teachers. In order to move Mississippi forward, our children must have the benefits of a quality education.

In response to this need, the Mississippi Legislature passed the “Mississippi Critical Teacher Shortage Act of 1998”, which offers attractive incentives for qualified teachers.

The Housing Assistance for Teachers Program (HAT) was designed to assist with funding to help teachers buy homes. Making homeownership easier will certainly encourage teachers to move to these shortage areas.

Features of the HAT Program

  • An assistance promissory note is converted to an interest-free grant if the approved applicant is participating as a licensed teacher, and agreeing to employment of service for a period of no less than three years in a school district where a critical shortage of teachers exists.
  • State assistance will cover the actual amount of funds needed to close on a home. This amount is not to exceed $6,000.
  • State assistance can be used for down payment, closing costs, prepaid expenses, and Private Mortgage Insurance (PMI).
  • Applicants must provide a minimum down payment from one’s own funds of 1% of the sales price and one month reserves.
  • Reserves may be a gift from a relative.
  • No income limits.
  • Units must be located in targeted counties of the state as designated by the Mississippi State Board of Education.

5. HOYO Project (Home Of Your Own Program)

Grant up to $15,000. Homeownership is becoming a reality for Mississippians with disabilities thanks to the Mississippi Home of Your Own (HOYO) Project, a program of the Institute of Disability Studies at the University of Southern Mississippi. The goal of the project is to assist persons with disabilities and their families in locating counseling, supports, and financial assistance which may allow them to purchase and maintain their own homes.

To qualify for the HOYO program, applicants must meet three major criteria. First, only individuals with disabilities defined by the Americans with Disabilities Act and their family members may apply. Second, an individual’s income after expenses must be adequate to make monthly mortgage payments on a home. Third, a good or improving credit report is recommended. Applicants without a credit history may be able to establish credit worthiness by verifying timely payments for rent, utilities, etc.

The HOYO initiative provides person-centered planning for individualized support and guidance through the loan process, pre-and post-purchase homebuyer counseling, referrals for services, and advocacy in support of independent living options for people with disabilities. The statewide program was formed with a cross section of representatives from: financial institutions (Trustmark National Bank), state disability agencies (Department of Rehabilitation), non-profit housing counseling agencies (Mississippi Home Corporation), advocacy organizations (Mississippi Protection and Advocacy, the ARC, the Coalition for Citizens with Disabilities), real estate associations, private sector representatives, Mississippi Development Authority, Mississippi Developmental Disability Council, City of Hattiesburg, and people with disabilities and their families.

For additional information, or to apply for homeownership assistance for the Home of Your Own project, call Cassie Hicks at 1-888-671-0051 or 601-266-5163. Correspondence may be directed to: Mississippi Home of Your Own, Institute of Disability Studies, USM Box 5163, Hattiesburg, MS 39406-5163.

6. Habitat Loan Purchase Program

The Mississippi Home Corporation created the Habitat Loan Purchase program to provide a funding source for theMississippi based affiliates of Habitat for Humanity.
The program is funded with Corporate Reserves and is designed as a revolving loan fund. The program involves local affiliates of Habitat and MHC working together to provide the opportunity for safe, decent and affordable housing for low income Mississippians.
Habitat is responsible for constructing and financing the home for eligible families, and MHC provides the permanent funding by purchasing the loans from the Habitat Affiliate.

7. REACH (Employee Assistance Program)
revised 11.21.08

REACH Mississippi is a long term workforce housing program of the Gulf Coast Renaissance Corporation, a private nonprofit organization founded by the Gulf Coast
Business Council. The program addresses the process of providing gap financing directly to individuals or families that makeup the workforce in Hancock, Harrison and Jackson Counties. It represents a partnership between Renaissance, participating employers, Mississippi Home Corporation, community based non-profit counseling agencies, private developers, financial institutions and local, state and federal agencies.

The program will leverage employer contributions and three-to-one matching Community Development Block Grant funds to close the gap between what the storm- ravaged residents of coastal counties can afford to pay for housing and what they need in order to live in the area. The program, designed to discourage workers from abandoning South Mississippi for more affordable areas, will increase Homeownership and improve the stability of the workforce.

The program is available to Missississippi Coastal counties and must be originated through a REACH participating lender.

FEATURES OF THE REACH PROGRAM:

  • 30 year fixed (Rate determined by each lender)
  • FHA insured, VA, Rural Development, Fannie Mae, Freddie Mac & MHC Bond loans
  • Employees participation will be shaped by Employer’s Internal assessment
  • Matching funds to REACH-qualified applicants for down payment and closing costs

8. Rehabilitation (203K)

A program of federal mortgage insurance for the rehabilitation and restoration of one-to-four-family dwellings. This would be great for homeowners looking to purchase a HUD home or any home to fix it up. With one loan closing, you have the ability to buy the property in “as is” condition and fix it up the way you want. money is set aside in a repair escrow (up to $35,000) upon closing of the loan for the improvements you will make. The improvements are made after you loan closes – no repairs made prior to close. Once your repairs are completed you do not need to qualify or close another loan – your loan is already in place!  Call us at 601-454-5714  to find out who can do the 203K program and details.

9Neighbor Next Door Sales Programs

The Neighbor Next Door initiatives are a collection of FHA’s home sales programs designed to help communities and promote homeownership.

Help a neighborhood! Buy a home through HUD’s Neighbor Next Door initiative designed to encourage renewal of revitalization areas by providing law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase homes in these communities. HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties.

Learn more about HUD’s Good Neighbor Next Door Sales program.

Additional discounted sales programs allow local governments and qualified nonprofit organizations to purchase homes at a discount. These are referred to as dollar homes and sales to nonprofits.

GRANTS

1. Community of Jackson Housing Assistance

$6,000 –  $15,000 grant to first time homeowners are given for the purchase of a home in the city of Jackson, Ms limits who meets income limits and guidelines

2. Madison Countians Allied Against Poverty

MadCAAP has two components of its Housing Program: housing repair for the poor who are usually elderly and/or handicapped and we build new houses through our Krista Cottage program for poor families with children. In 2006 we completed 72 housing repairs and constructed one new home.

3.  LASTEST NEWS…

HUD’s Donovan Announces Revised Rules for Homebuyer Tax Credit

HUD action allow homebuyers to apply the $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home

HUD News Release
May 29, 2009
HousingZone

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration’s homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA’s current market share, it’s estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

 

4. NISSAN EMPLOYEE DISCOUNT

– Nissan employees will receive 1/4% discount off on the prevailing discount points.

– Reduced mortgage loan fees : 1. $400 processing fee covers: appraisal, credit report, underwriting, tax service, document preparation, and express mail. 2. closing fee will have two components: $250 which covers the attorney & recording fees plus the loan title insurance premium.

5.  More to come….

 

Fore more information contact Dee at 601-454-5714..

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