Mississippi FHA Home Loans – FHA Lenders in Mississippi

Mississippi FHA loans

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 find the best FHA lender in Mississippi regardless as to whether you live in Columbus, Cleveland, Cincinnati, Toledo or anywhere else in Mississippi. Simply complete this loan scenario form and someone will call you back immediately.

Mississippi FHA Mortgage Benefits 

  • FHA mortgages allow for low credit scores as low as 500
  • FHA mortgages require very low down payment of only 3.5%
  • FHA mortgages never have pre-payment penalties
  • You can finance your home with an FHA loan just two years after a bankruptcy
  • FHA mortgages help borrowers to find their dream home and are often the choice for first time home buyers

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.

  1. Bancorp South
  2. IHMV Credit Union
  3. Gum Tree Mortgage
  4. First Bank and Trust

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.

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 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 the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, 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.