The Mississippi Home Corp. is offering a $14,999 grant to low- and middle-income homebuyers with modest credit.
The Home Loan Plus grant, which is just short of $15,000 to meet federal regulations, can be used for a down payment and principal reduction by those with a minimum credit score of 640.
There are also income requirements. For a family of four in Lowndes County, their combined income must be less than $39,100 — less than $35,200 for a family of three.
In Clay County, a family of four must have a combined income of less than $35,850, less than $32,300 for a family of three.
In Oktibbeha County, a family of four must have must have a combined income of $37,300, less than $33,600 for a family of three.
(For income requirements, visit www.mshc.com/HLP/Income.aspx and select household size and county.)
They are also required to live in the house for five years, said JTS and Co. mortgage loan originator Jimmy McPherson.
“It”s a good program if you are going to stay in the house for a while,” McPherson said.
For those who meet the requirements and have the funds, now may be a good time to take advantage of the program with interest rates at near-record lows of about 5 percent, said Crye-Leike broker and owner Rick McGill.
Century 21 Real Estate agent Andy Kalinowski estimated that the loan would reduce payments on a $105,000 mortgage with a 5 percent interest rate by $59, from $622 to $563.
The down side of taking the statewide grant is navigating through the state”s bureaucracy, McPherson said. While most loans are processed in weeks, a loan with the grant could take 45 to 60 days to process.
Only two Lowndes County residents have taken the grant, he said.
Despite a bad October, real estate agents are expecting an upswing in sales in January, February and March as taxpayers receive their rapid refunds, McGill said.
Mortgage lenders may also relax current loan requirements during that period, which will spur the recovery of the housing market, he said.
“We”re hoping that by the end of this year, (banks) are going to back off a bit and loosen up,” McGill added.
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