Zero-down USDA Guaranteed Loans are the most popular rural development mortgage program in Mississippi. These loans are available for anyone with low to moderate income to purchase a home in approved rural areas with no down payment.  The USDA Guaranteed Loan Program is also the favorite no-down payment mortgage in Mississippi for non-veterans today, and can be used for a broader range of applicant incomes than USDA Direct Loans.

What are Mississippi USDA Loans?

The USDA loan program was created by the United States Department of Agriculture Rural Development, also known as “USDA RD”. USDA Guaranteed Loans (also known as USDA Section 502 Guaranteed Loans) are a mortgage program for low and moderate income mortgage applicants. Mississippi USDA loans provide low-cost, government insured mortgage options that suit a variety of home buying needs. The most common mortgages offered through USDA are known as “Guaranteed” loans. USDA Guaranteed Loans are 100% financing mortgages, which means you can use them to buy a home with no down payment.

Mississippi USDA Loan Requirements

USDA loan requirements mainly focus on the home loan applicant and the property. First off, the home must be located in an approved rural areas to be considered eligible for USDA financing. Second off, the home buyer must meet all income requirements set forth by USDA. These income limits are established through a combination of debt-to-income ratios and income ceilings that equal 115% of the area median income (AMI) for the particular area. Statewide, Mississippi carries a median household income of $45,081, but that can vary from county to county. Ultimately, the applicant must also meet all lender requirements for mortgage approval which include:

  • Credit Requirements
  • Income Requirements
  • Documentation Requirements

Mississippi USDA Loan Limits

USDA doesn’t set specific maximum loan amounts for guaranteed mortgages. Instead, local limits are determined by a combination of the area USDA maximum income limit and the borrower’s debt-to-income ratios. This approach means that guaranteed Mississippi USDA loan limits are fluid and based upon numerous factors. The limits listed below are based on approximate calculations. Actual guaranteed loan limits may vary.

Area
1-4 Person Households
5-8 Person Households
Adams County, MS$306,000$391,000
Alcorn County, MS$306,000$391,000
Amite County, MS$306,000$391,000
Attala County, MS$306,000$391,000
Benton County, MS HUD Metro FMR Area$306,000$391,000
Bolivar County, MS$306,000$391,000
Calhoun County, MS$306,000$391,000
Carroll County, MS$306,000$391,000
Chickasaw County, MS$306,000$391,000
Choctaw County, MS$306,000$391,000
Claiborne County, MS$306,000$391,000
Clarke County, MS$306,000$391,000
Clay County, MS$306,000$391,000
Coahoma County, MS$306,000$391,000
Covington County, MS$306,000$391,000
Franklin County, MS$306,000$391,000
George County, MS$306,000$391,000
Greene County, MS$306,000$391,000
Grenada County, MS$306,000$391,000
Gulfport-Biloxi, MS HUD Metro FMR Area$306,000$391,000
Hattiesburg, MS MSA$306,000$391,000
Holmes County, MS$306,000$391,000
Humphreys County, MS$306,000$391,000
Issaquena County, MS$306,000$391,000
Itawamba County, MS$306,000$391,000
Jackson, MS HUD Metro FMR Area$306,000$391,000
Jasper County, MS$306,000$391,000
Jefferson County, MS$306,000$391,000
Jefferson Davis County, MS$306,000$391,000
Jones County, MS$306,000$391,000
Kemper County, MS$306,000$391,000
Lafayette County, MS$306,000$391,000
Lauderdale County, MS$306,000$391,000
Lawrence County, MS$306,000$391,000
Leake County, MS$306,000$391,000
Lee County, MS$306,000$391,000
Leflore County, MS$306,000$391,000
Lincoln County, MS$306,000$391,000
Lowndes County, MS$306,000$391,000
Marion County, MS$306,000$391,000
Marshall County, MS HUD Metro FMR Area$306,000$391,000
Memphis, TN-MS-AR HUD Metro FMR Area$306,000$391,000
Monroe County, MS$306,000$391,000
Montgomery County, MS$306,000$391,000
Neshoba County, MS$306,000$391,000
Newton County, MS$306,000$391,000
Noxubee County, MS$306,000$391,000
Oktibbeha County, MS$306,000$391,000
Panola County, MS$306,000$391,000
Pascagoula, MS HUD Metro FMR Area$306,000$391,000
Pearl River County, MS$306,000$391,000
Pike County, MS$306,000$391,000
Pontotoc County, MS$306,000$391,000
Prentiss County, MS$306,000$391,000
Quitman County, MS$306,000$391,000
Scott County, MS$306,000$391,000
Sharkey County, MS$306,000$391,000
Simpson County, MS HUD Metro FMR Area$306,000$391,000
Smith County, MS$306,000$391,000
Stone County, MS$306,000$391,000
Sunflower County, MS$306,000$391,000
Tallahatchie County, MS$306,000$391,000
Tate County, MS HUD Metro FMR Area$306,000$391,000
Tippah County, MS$306,000$391,000
Tishomingo County, MS$306,000$391,000
Tunica County, MS HUD Metro FMR Area$306,000$391,000
Union County, MS$306,000$391,000
Walthall County, MS$306,000$391,000
Warren County, MS$306,000$391,000
Washington County, MS$306,000$391,000
Wayne County, MS$306,000$391,000
Webster County, MS$306,000$391,000
Wilkinson County, MS$306,000$391,000
Winston County, MS$306,000$391,000
Yalobusha County, MS$306,000$391,000
Yazoo County, MS HUD Metro FMR Area$306,000$391,000

Additional USDA Limits

What is the maximum amount that I can borrow with a USDA Loan?

The maximum amount for a USDA home loan in Mississippi is determined by:

  • Maximum Loan Amount: There’s no set maximum loan amount for USDA rural home loans in MS. Instead, your debt-to-income ratios dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for all areas can be found at here.
  • Maximum Financing: The maximum USDA Rural Development Loan amount in MS is 100% of the home’s appraised value plus the 1% USDA RD Loan guarantee fee.

What types of loans does USDA offer in Mississippi?

Two USDA home loan options are presently available in Mississippi for single family households. These programs are backed by the U.S. Department of Agriculture by way of its Rural Development Housing Loans:

  • Mississippi USDA Guaranteed Home Loans – Guaranteed Loans the most common Rural Housing Loans in Mississippi, because they accommodate higher income limits and 100% financing for home purchases. USDA Guaranteed applicants may have an income of up to 115% of the median household income for the area, which average $45,081 across the state. Specific area income limits for the program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
  • Mississippi USDA Direct Home Loans – USDA Direct Housing Loans in Mississippi are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I’m eligible for a USDA Loan in Mississippi?

To be eligible for a USDA loan in Mississippi, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is generally required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

How much money will I need for the down payment and closing costs?

Rural Development Mortgages in Mississippi require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Mortgages?

While USDA Guidelines do require that the property be Owner Occupied (OO), they also allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

More Resources

Get Your Rate Quote
Refinance     Purchase

As seen in:
CBS Moneywatch CBS News Yahoo News US News AP
Secure EHL