You may need less than you think
Twenty percent down is not a requirement for most buyers. Many loans allow much less, and assistance programs can cover part of what's left.
- FHA: 3.5% down with a qualifying score.
- Conventional: some programs allow 3% down for first-time buyers.
- VA and USDA: no down payment for eligible buyers and homes.
Why the right lender matters
Down payment assistance only works through lenders approved to offer it. A lender who uses Mississippi Home Corporation programs regularly knows the paperwork, the income and price limits, and how to time the funds for closing. A lender who rarely does it may tell you it isn't available, or slow your closing.
Mississippi Home Corporation assistance
The Mississippi Home Corporation, the state's housing finance agency, offers down payment assistance paired with a qualifying first mortgage, through approved lenders across the state. It also offers a Mortgage Credit Certificate, which can lower your federal income taxes each year you have the loan. Eligibility depends on income, purchase price and, for some programs, first-time buyer status.
Other ways to cover upfront costs
Assistance isn't the only tool.
- Seller-paid closing costs: you can ask the seller to pay part of your closing costs in your offer, within your loan's limits.
- Gift funds: many loans allow a documented gift from family for the down payment.
- Lender credits: a slightly higher rate in exchange for help with closing costs.
- Employer or local programs: some employers, cities and nonprofits offer help; ask your lender and a housing counselor.
Steps to take
Talk to an approved lender first, get pre-approved with the assistance included, and then shop for homes within that number. Travis writes offers that fit your program's rules, so the help isn't lost at closing.
How Travis helps buyers get ready
Travis DeLoach is a licensed Mississippi real estate agent with Luxury Southern Realty in Hattiesburg. He isn't a lender or credit counselor, but he works with local lenders who handle FHA, VA, USDA and Mississippi Home Corporation loans every week, and he'll connect you with one who fits your situation.
- A free first conversation about your goal, timeline and budget
- Introductions to Pine Belt lenders who know first-time buyer and down payment programs
- A home search kept inside the budget your lender approves
- Help asking sellers for closing cost help when the market allows it
Before you rely on any number
Program rules, income limits and credit minimums change. Confirm current details with a lender, the Mississippi Home Corporation (mshomecorp.com) or HUD (hud.gov) before you rely on them.
Frequently asked questions
Is there down payment assistance in Mississippi?+
Yes. The Mississippi Home Corporation offers down payment assistance through approved lenders, and some local and employer programs exist. Eligibility depends on income, price limits and other rules.
Do I have to be a first-time buyer?+
Not always. Some programs require it and some don't. A lender approved for the programs can tell you which ones you qualify for.
Does down payment assistance have to be paid back?+
It depends on the program. Some help is a forgivable or deferred loan, some is repaid over time. Read the terms with your lender before you choose.
Can the seller pay my closing costs?+
Often, yes, up to a limit set by your loan type. Travis can include a request for seller-paid closing costs in your offer when it makes sense.
Can family give me money for a down payment?+
Many loans allow documented gift funds. Your lender will need a gift letter and a paper trail for the money.
Talk it through with Travis
No pressure. Tell Travis your goal and he'll connect you with a local lender who fits your situation.
Related guides
This guide is general information, not lending, credit or tax advice. Travis is not a lender; loan approval and program eligibility are decided by lenders and program administrators. Travis DeLoach is a licensed real estate agent in Mississippi (MS License # S62442) with Luxury Southern Realty.