USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in Mississippi don’t work in the same manner as USDA Guaranteed Loans in Mississippi. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.Mississippi USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

Mississippi USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $45,081 in Mississippi, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for that area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in MS are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in Mississippi for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in Mississippi?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in Mississippi besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in Mississippi, FHA Loan in Mississippi, or if you’re a veteran or qualified family member, VA Loans in Mississippi. You may also want to research if any helpful Mississippi down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in Mississippi. Search home loan limits for your area below.

Mississippi USDA Direct Loan Limits

Direct Loan Limit
Adams $251,862
Alcorn $251,862
Amite $251,862
Attala $251,862
Benton $251,862
Bolivar $251,862
Calhoun $251,862
Carroll $251,862
Chickasaw $251,862
Choctaw $251,862
Claiborne $251,862
Clarke $251,862
Clay $251,862
Coahoma $251,862
Copiah $251,862
Covington $251,862
DeSoto $251,862
Forrest $251,862
Franklin $251,862
George $251,862
Greene $251,862
Grenada $251,862
Hancock $251,862
Harrison $251,862
Hinds $251,862
Holmes $251,862
Humphreys $251,862
Issaquena $251,862
Itawamba $251,862
Jackson $251,862
Jasper $251,862
Jefferson $251,862
Jefferson Davis $251,862
Jones $251,862
Kemper $251,862
Lafayette $251,862
Lamar $251,862
Lauderdale $251,862
Lawrence $251,862
Leake $251,862
Lee $251,862
Leflore $251,862
Lincoln $251,862
Lowndes $251,862
Madison $251,862
Marion $251,862
Marshall $251,862
Monroe $251,862
Montgomery $251,862
Neshoba $251,862
Newton $251,862
Noxubee $251,862
Oktibbeha $251,862
Panola $251,862
Pearl River $251,862
Perry $251,862
Perry $251,862
Pike $251,862
Pike $251,862
Pontotoc $251,862
Pontotoc $251,862
Prentiss $251,862
Prentiss $251,862
Quitman $251,862
Quitman $251,862
Rankin $251,862
Rankin $251,862
Scott $251,862
Scott $251,862
Sharkey $251,862
Sharkey $251,862
Simpson $251,862
Simpson $251,862
Smith $251,862
Smith $251,862
Stone $251,862
Stone $251,862
Sunflower $251,862
Sunflower $251,862
Tallahatchie $251,862
Tallahatchie $251,862
Tate $251,862
Tate $251,862
Tippah $251,862
Tippah $251,862
Tishomingo $251,862
Tishomingo $251,862
Tunica $251,862
Tunica $251,862
Union $251,862
Union $251,862
Walthall $251,862
Walthall $251,862
Warren $251,862
Warren $251,862
Washington $251,862
Washington $251,862
Wayne $251,862
Wayne $251,862
Webster $251,862
Webster $251,862
Wilkinson $251,862
Winston $251,862
Yalobusha $251,862
Yazoo $251,862

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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