Mortgage Revenue Bond

One of the major obstacles on the path to homeownership is the down payment. Though many people can afford to make monthly mortgage payments, they don’t have enough money saved to pay the upfront costs. In an effort to help individuals overcome this obstacle, the Mississippi Home Corporation offers competitive interest rates and down payment assistance via proceeds from the sale of Mortgage Revenue Bonds.

Available Assistance
In addition to competitive interest rates, the Mortgage Revenue Bonds program offers eligible, first-time homebuyers up to 3.5 percent of the purchase price as down payment and/or closing costs assistance. These funds can come in the form of a cash advance or second mortgage. 

Eligibility Requirements
In order to be eligible for the Mortgage Revenue Bonds program, all applicants must meet certain requirements. They must be first-time homebuyers (individuals who have not owned a principal interest in a residence in the past three years), unless they reside in “Target Areas.” Applicants must meet the credit requirements established by FHA, VA, Rural Development, Freddie Mac and FannieMae products. They must be legal U.S. residents whose annual household income falls under the program’s set limits. 

Property Guidelines
Any home purchased under the program must serve as the applicant’s primary residence, be located in the state of Mississippi, and fall under the maximum purchase price of the county. Eligible property types include new or existing single-family homes, townhouses, condominiums, or manufactured homes permanently affixed to land.

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.


Note: This information was accurate at the time of publication and may no longer be current - visit the program website for updated information.