The housing market continues to rise in prices, but despite this fact, around half of all home purchases are made by first-time buyers.
Buying a home without coming out of pocket for the down payment is possible in Mississippi. You might find programs that decrease the cost of the down payment if they require one at all.
Even those without money for a down payment and closing costs find their way into a new home, but how? Keep reading to learn how to make a down payment on a house without breaking the bank.
Buying a House Without a Down Payment
If you don’t have money to purchase a home, you should at least have the down payment and closing costs covered. However, if you qualify for a zero-down mortgage or home buyer assistance program, you can avoid both costs.
You can also use the following tactics to buy a home with no out of pocket costs:
- Applying for a zero-down USDA loan or VA loan
- Using down payment assistance
- Asking for down payment money as a gift from family
- Getting the lender to pay the closing costs
- Getting the seller to pay the closing costs
If you get the down payment covered, you’ll still need to pay closing costs out of pocket. Even then, you’ll save thousands by reducing the cash requirements.
When buying your first home in Mississippi, you can look into first-time home buyer programs for aid.
National First-Time Home Buyer Programs
These programs provide loans for home buyers in any state. Qualified home buyers can purchase with a smaller down payment or no down payment. The national options include:
- Conventional mortgage
- FHA loans
- VA loans
- USDA loans
VA loans are only available to military members, surviving spouses, and veterans. All of these loans can benefit low-income home buyers with low credit scores.
Mississippi First-Time Home Buyer Programs
The Mississippi Home Corporation aids home buyers with closing costs and down payments. Along with first-time buyers, they target residents of low-income areas, rural teachers, and veterans.
Programs might be available for repeat home buyers and mortgage interest tax credit is available. Help from this program comes in the form of forgivable loans and grants.
To be eligible for this program, you must meet the following requirements:
- The home must be owner-occupied in Mississippi
- Borrow needs to meet minimum credit score requirements
- Property must be a condominium, townhouse, or single-family home
The different state programs are Smart Solution, Mortgage Revenue Bond 7 (MRB7), Housing Assistance for Teachers (HAT), and Mortgage Credit Certificate.
Applying on the homeownership program page is simple and provides you with a list of participating lenders. From there you can search for homes for sale with Lee Garland.
If you don’t qualify for these programs, you can use a down payment calculator to figure out upfront costs.
Are You a First-Time Home Buyer in Mississippi?
As a first-time home buyer in Mississippi, you have more options when it comes to funding. To avoid paying a down payment and closing costs, you can see if you qualify for a national or Mississippi first-time home buyer program.
If you can’t qualify for either, try using different tactics to get your costs down. Paying for only one out of pocket is better than paying for both.
Looking for additional home buying tips? Check out the other real estate posts on our blog.