There are several homebuyer programs in Hattiesburg, Mississippi, that you can choose from. These programs can help you get one step closer to owning the house of your dreams.
My name is Beth Scharwath. I know a lot about first-time homebuyer programs in Hattiesburg, Mississippi.
I have been in the real estate business since 1996. I’m the best person to ask about homes for sale for first-time home buyers in the Hattiesburg area.
The fact is, purchasing a property is quite rewarding. It’s the most significant financial commitment you’ll ever make, and it declares to the world that you are now adulting! pic.twitter.com/YXhlLZEL2D
— Beth Duval-Scharwath (@searchhbg) December 1, 2022
[tcb-script async=”” src=”https://platform.twitter.com/widgets.js” charset=”utf-8″][/tcb-script]
Who Qualifies As First-Time Home Buyers?
You qualify as a first-time homebuyer if:
- You are buying your first-ever home.
- You owned a home you sold over three years ago.
- The last time you owned a home was three years ago.
Those in this group and on the HUD list are eligible for first-time homebuyer programs.
Follow along as I detail the benefits of Hattiesburg, Mississippi’s first-time homebuyer programs.
If you want to, you can also check https://www.bethscharwath.com/the-complete-guide-for-first-time-home-buyers-in-purvis-ms/ for a comprehensive guide to help you as a first-time homebuyer.
Which First-Time Homebuyer Programs Are Available In Hattiesburg, Mississippi?
First-time homebuyer programs can help those with low incomes and low credit scores. Awareness of these programs is essential, especially if you’re a first-time homebuyer.
These are the options you can choose from:
1. FHA Loan / First Time Home Buyer Program
The FHA Loan is the most well-liked program available to first-time buyers. It is an excellent option if you have a low credit score and still need big savings.
It is one of the few mortgage programs that accept a low credit score and allows a 5% or less down payment. FHA rates are among the lowest available right now, too.
Also, most conventional loans only allow a DTI ratio of 36% to 43%. The FHA loan generously allows a DTI ratio of 31% up to 50%.
The FHA Loan is a good choice because it has various perks for first-time homebuyers, like:
- Relatively lax credit score requirements (at least 580)
- No income cap
- Low down payment (3.5%)
- Higher debt-to-income ratio than most conventional loans
- Favorable interest rates (currently among the lowest)
- Gifted funds are okay.
- Financial risk protection
- Minimal paperwork to fill out
- Refinancing is possible
2. Conventional 97 Loan / Conforming Loan
Unlike the FHA loan, first-time buyers typically go with the conventional loan.
The conventional loan will work in your favor if you are a first-time homebuyer with a good credit score.
You can take advantage of more manageable monthly terms due to your strong credit rating. You won’t have to worry about paying insurance premiums with a conventional loan.
Here are some advantages of a conventional home loan:
- Low down payment (3%)
- Have a debt-to-income ratio cap of 43%.
- At least 620 credit score
- You can cancel the insurance at 20% equity.
3. USDA Loan / Rural Development Guaranteed Housing Loan Program
A USDA loan is one of the most cost-effective ways to finance a home. You can enjoy this program if you’re a newcomer to the housing market in rural and suburban regions.
The only criterion is that the home will serve as your primary house, a condo, a single-family home, or a townhouse.
There is no largest loan size for USDA loans, which is a great perk for first-time homebuyers. You can get approved if you meet their credit and income requirements.
Here are some benefits of the USDA loan:
- Possible to buy a home with no initial payment
- Less strict credit score requirements
- Flexible eligibility criteria
- Lower debt-to-income ratio (less than 41%)
- No prepayment penalties / no fees for paying off the loan early
- No private mortgage insurance
4. VA Home Loan Program
The VA Home Loan program is open to military personnel and veterans, those in the Guard and Reserves. It has the support of the Veterans Affairs Department.
VA Loans need the following military service:
- One hundred eighty-one days on active duty and service during peace.
- Ninety days of continuous active duty and service during wartime.
- Over six years of service logged in either the Reserves or the National Guard.
- You are the spouse of a veteran who died while serving in the military or became disabled while serving.
You don’t need to worry about putting up money upfront to take advantage of this program.
You can choose a fixed-rate mortgage or an adjustable-rate mortgage. It will vary based on your preferred interest rate.
This program is a good choice for you since its interest rates are usually low. Those who have not used their VA Home Loan benefit are eligible for the most significant benefit.
Many advantages make this a viable option for first-time homebuyers, such as:
- No need for a down payment
- Credit scores as low as 580–620 are eligible.
- Does not have any smallest and largest income restrictions
- Favorable debt-to-income ratios allowed (41%).
- The benefit of full entitlement
5. Teacher Next Door’s First-Time Home Buyers Program
This program helps teachers and public service professionals with grants and closing costs. It is a good option if you need help with a down payment and want special home loan initiatives. It can help you secure the best financing possible for the home-buying process.
You are eligible for the program if you are a:
- School social worker
- School nurse
- School counselor
- School psychologist
- School dean
- School administrator
- Bus driver
- Librarian or media specialist
- Lunchroom staff
- Custodian or maintenance staff
- School and district office staff
Some benefits of Teacher Next Door’s FTHB program:
- Low down payment options
- Favorable interest rates
- Easy application process
- Simple dos program
6. Freddie Mac Home Possible Loan Program
The Freddie Mac Home Possible is the best option if you need less strict credit requirements. This program provides lenient criteria for the approval of loans.
The Home Possible Loan Program is ready to accommodate a wide range of borrowing needs. It also provides flexible down payment funds.
The criteria to qualify for the program are as follows:
- Low down payment (3%)
- At least a 660 credit score.
- Consistent income and employment status
- Household income not to exceed 80% of the median income in the area
- You will use the house as your primary home.
There are several first-time homebuyer programs which you could avail, but it’s also important to learn about Mississippi’s homes for sale, which you can check out here.
It’s wonderful that there are so many first-time homebuyer programs to choose from. But it can take time and effort to figure out which one to decide due to the sheer number of options.
I’m with The CD Group KW ELITE Keller Williams Realty. Count on me as your guide for first-time homebuyer programs in Hattiesburg, Mississippi!
Call me, Beth Scharwath, at 601-606-3001 for a free, no-pressure consultation.
You can also contact me at email@example.com to get started.
I can help you make your first home-buying experience as easy and stress-free as possible.