Mississippi FHA Loans – FHA Lenders in Mississippi

Mississippi FHA loans

We are helping Mississippi residents to find a low down payment FHA home loan. Here, you will find some basic information needed to understand what an FHA Loan is, what the qualifications are as well as the FHA loan limits in Mississippi. If you qualify, an FHA loan is a great way for borrowers to get into a home with a small down payment.

If you live in Mississippi and have poor credit or a small down payment, then an FHA loan may be right for you.  There are some basic requirements to qualify for an FHA loans in Mississippi which we will explain below and afterwards we can help you to find an FHA lender who can help you locally.

We can help you to get approved for an FHA loan in Mississippi regardless as to whether you live in Jackson, Southaven, Gulfport, Hinds County, Harrison County, or anywhere else in Mississippi. Simply complete this loan scenario form and someone will call you back immediately.

What are FHA Loans?

FHA loans are government backed mortgages that are insured by the Federal Housing Administration (FHA).  They are the most popular type of mortgage for first time home buyers because they allow for a small down payment, lower credit scores, and a higher debt-to-income ratio. 

Mississippi FHA Mortgage Benefits 

  • FHA mortgages allow for low credit scores.
  • FHA mortgages require very low down payments.
  • FHA mortgages never have pre-payment penalties.
  • FHA mortgages help borrowers to find their dream home and are often the choice for first time home buyers.
  • Down payment assistance is permitted and may be available through Dream Home Financing.
  • You may receive a gift towards your down payment from a family member.
  • There are no income limits.
  • You can get approved for an FHA loan with a recent chapter 13 bankruptcy.

Click to get an FHA rate quote in Mississippi

Mississippi FHA Loan Requirements

These are the basic requirements to qualify for an FHA loan in Mississippi as outlined by the FHA Handbook 4000.1.

  • FHA Employment Requirements– You must have a full two year work history to qualify. If you are self employed, you would need to have owned your business for two years.
  • Residency Requirements – The home you plan to purchase must be occupied as your primary residence. Multi family buildings up to 4 units are eligible as long as you occupy one of those units are your own residence. Investment properties are not allowed.
  • FHA Income Documentation – You must show recent pay stubs, tax returns for the past two years, and bank statements for the past two months. If you are self employed, you will need to also document your income.
  • FHA Mortgage Down Payment Requirement – The minimum down payment requirement for an FHA mortgage in 2018 is 3.5% with a credit score of 580 or higher. If your credit score is below 580, the a 10% down payment will be required. Read more about FHA down payment information
  • FHA Credit Score Requirement – You can qualify for an Mississippi FHA mortgage with a credit score of 580 or more. You may also get qualified with a credit score as low as 500.
  • FHA Mortgage Insurance (MIP) – You will be required to have an FHA mortgage insurance premium (MIP).  You may read more about what this insurance will cost at our full FHA mortgage page.

These are just some of the basic requirements as outlined by the FHA handbook. There are many more specific guidelines and requirements that may help or prevent you from qualifying for an FHA loan.

In addition, not all lenders are the same. Some may impose their own requirements that make it more difficult to qualify. Let us help you to find a lender who can help based upon your specific needs.

Click to connect to an Mississippi FHA loan specialist for a rate quote

List of FHA Lenders in Mississippi

These are some reputable FHA lenders in Mississippi. Keep in mind this is just a small sampling and they all may have different credit requirements. Some may also do 203k rehab mortgages while others many not. Therefore, we recommend speaking with us first so we can determine the best solution for you. Contact us

  1. FHA LendersContact
  2. Bancorp SouthContact
  3. IHMV Credit UnionContact
  4. Gum Tree MortgageContact
  5. First Bank and TrustContact

Keep in mind these are just a few lenders. We also have to mention that there are many national lenders who may actually be the perfect match for you. This is where we can help to remove some of the confusion and narrow it down for you.

Types of FHA Loans Available in Mississippi

There are multiple FHA loan products available for purchasing or refinancing a home. Not all Mississippi mortgage lenders offer all of these but we can help you regardless of what your needs are.

  • FHA Purchase – For the purchase of your primary residence.
  • FHA Refinance – To refinance an existing FHA loan or any type of mortgage into an FHA loan.
  • FHA 203k Rehab – This loan allows you to purchase or refinance your home while also borrowing the money needed to rehab or update the property.
  • FHA Construction Loan – With this program, you can purchase property and also build your dream home all with just one FHA mortgage.
  • FHA Streamline Refinance – This loan will allow you to refinance your FHA loan without an appraisal or income documentation. Read more here.
  • FHA Cash Out Refinance – You can refinance your home and cash out equity up to 80% of the appraised value.

If you have questions about any of these FHA loan products, simply contact us here.

FHA Streamline Refinance in Mississippi

An FHA streamline refinance is an excellent way to reduce your interest rate and monthly mortgage payment when rates have come down. The following are some of the benefits of an FHA streamline refinance in Mississippi.

  • No appraisal needed
  • No credit check required
  • It is okay if your home declined in value
  • Reduced upfront FHA mortgage insurance premium
  • FHA closing costs can be rolled into the loan

When you consider these benefits, an FHA streamline refinance may make a lot of sense for you. The exception to this would be if you already paid down more than 20% of the value. If that is the case, then you possibly would want to look at a conventional loan.

FHA Loan Limits in Mississippi

Homebuyers are limited to how much they can get approved for by their debt to income ratio (DTI), but also the loan limits or maximum loan amounts available in each county.

Every year the Federal Housing Administration provides updated loan limits for the following year. The limits are higher for multi family homes than they are for single family homes. Review the Mississippi FHA Loan Limits by County See how much you can borrow

How to Apply and Get Approved

The first step in securing a pre-approval is to complete the lender or mortgage broker loan application. It is important to complete the application fully to avoid any delays.

Next, your lender will pull your credit to import your debt or liabilities into the application. It is at this point where you can receive an initial pre-approval.

The loan officer will ask you to provide all of the required documentation to validate your eligibility and as supporting documents to provide to the underwriter for final approval.

Once your loan officer has submitted the full loan package to the underwriter, it will take a couple of days for review.

The underwriter may have some additional requirements for you to fulfill. Some of these include more pay stubs or bank statements. Getting an appraisal will also be on the list of requirements and that appraisal must be equal to or greater than the purchase price.

The entire process if managed properly can take less than 30 days.

FHA Loan Frequently Asked Questions – FHA FAQ

What is the FHA down payment requirement?
You will need to put down 3.5% for an FHA loan. More if your credit scores are extremely low.

Do FHA loans require mortgage insurance?
The FHA recently changed their guidelines and now require all FHA loans to have mortgage insurance regardless as to whether you are putting down more or less than 20%. There is also no way to remove FHA mortgage insurance unless you refinance to a different loan product other than an FHA loan.

Are all Mississippi FHA lenders the same?
Not all FHA lenders are the same. Some will allow for very low credit scores, while others prefer to only work with borrowers with better credit. Some lenders also prefer not to do FHA 203k loans which require more paperwork.

Can veterans apply for an FHA loan?
Veterans absolutely can apply for an FHA loan, but they will need to submit a DD form 212 with their application. We believe the best program for veterans is the VA Loan.

What are the FHA mortgage loan fees?
Some of the fees are standard and customary but other fees may vary by lenders. Therefore, we recommend that you contact an FHA lender here to outline all of the fees that may pertain to you.

What is the FHA Loan limit in my area?
The FHA loan limits vary by county. We provided a link at the bottom of the page where you can looking the FHA loan limits.

Can I get an FHA loan with bad credit?
You can get an FHA loan with bad credit but the down payment requirement may be higher as well as the interest rate.

Can I get an FHA loan on more than one property?
Typically no but there are some circumstances where it would be allowed. For example, if you are moving to a new home but may want to hold onto the current property to rent it out, then you can get an FHA loan on your new home simultaneously. This is just one example.

Are gift funds permitted to be used towards the down payment?
You can get a gift from a relative, close friend, your employer, a charity, or a government agency. The gift can cover your down payment and your closing costs too.

Helpful FHA Resources

Mississippi FHA Loan Limits by County

We are able to help you to find an FHA loan with the best FHA lenders in all 50 states states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Mississippi, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.