MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues.  Proceeds of the bonds and notes are loaned at below-market interest rates to developers of rental housing, and also fund home mortgages and home improvement loans.  MSHDA also administers various federal housing programs.

Income Limits:
Metropolitan Areas:  $56,650.00

Sale Price Limits:
Existing Homes:  $105,000.00
New Homes:  $128.000.00

How The Program Works:

• Purchase price limits apply.
• The mortgage loan term is 30 years.
• FHA, VA, Rural Development, and conventional loans are available.
• Down Payment Assistance Loans are available for eligible low-income applicants.
• The lender may charge the homebuyer a 1% loan origination fee.
• Acquisition Rehabilitation mortgages are available for homes needing major repairs.

Guidelines for Borrowers:
As a borrower, you must:

• Not exceed the maximum annual gross household income limits in rural and urban areas (see limits). You must include the income of all adult members of the household who will be living in the home you buy. There is no adjustment to income for family size.
• Occupy the home as your principal residence after the loan is closed.
• Be a first-time homebuyer (not having owned a house as your principal residence within the last three years). However, there are targeted areas of the state that are exempt from this regulation.
• Take a signed purchase agreement to a participating lender to make an application for a MSHDA loan.
• Not refinance an existing mortgage or a land contract, finance any type of rental property, or use the loan in conjunction with the Mortgage Credit Certificate (MCC) program.

You may have to pay a federal "recapture tax" if you sell your house within the first nine years and realize a gain on the sale.

Many Types of Homes Qualify:

Many types of homes are eligible under MSHDA's Single Family program. Depending on your individual needs, you may finance:

• Newly built, not previously occupied, houses or builders' models that have not been occupied.
• New multiple-section manufactured (mobile) homes on foundations permanently affixed to real estate or new single-section manufactured homes permanently affixed to real estate.
• Existing houses or condominiums that have been previously occupied.
• Existing manufactured homes only if they are multiple-section and on foundations permanently affixed to real estate.

There are times when MSHDA is out of mortgage funds for people at certain income levels and or in certain areas of the state. This means that you may have to wait a few weeks until MSHDA is again able to accept applications. When new mortgage funds are available, the interest rate may be different.

Have more questions please feel free to give us a call or email us, we are your MSHDA Mortgage Specialist. 

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