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Mississippi Mortgage: Buying a Home In Mississippi
A Buyer’s Market
In the wake of the devastating hurricane season of 2005, it seems that the home buying market in Mississippi would favor the seller, not the buyer. Land prices have increased, leaving many willing buyers unable to afford a home. Yet while this is frustrating, there are also ways around it. In years past, the average mortgage loan in Mississippi was anywhere between $80,000 and $90,000. In response to the aftermath of Hurricane Katrina, many mortgage companies have increased their limits. Some have increased up to $150,000, nearly double what they would have offered in the past. By taking advantage of these generous loans, more potential home buyers have realize their dream of owning their own home.
Current Mortgage Statistics
Currently, the state of Mississippi has about 2.8 million residents, and of those millions of people, over 72 percent own their homes. Thanks to assistance programs and the recent flexibility of mortgage loan companies, that number is sure to steadily increase. While all homeowners ultimately choose mortgages that fit their individual needs, over 46 percent of mortgages in Mississippi are adjustable rate mortgages (ARM’s). This means, that the mortgage rates and payment amounts can vary on a yearly basis. In addition, 7 percent of Mississippian mortgages are interest only.
In the late 1980’s, the state of Mississippi declared a statewide housing act be established, with the slogan “A Decent Home for Every Mississippian.” As a result, the Mississippi Home Corporation was born. For the past three decades, the Home Corporation has been dedicated to providing affordable housing to all those who wish to live in Mississippi. The MHC offers educational seminars on buying a home, free mortgage calculating services to help residents realize what is affordable for them and what fits with their needs. It also provides financial assistance through mortgage discount rates, down payment assistance, and housing tax credits. As a result, home ownership has grown 5 percent per year since 2002.
Protection for Home Buyers
To protect its residents and homebuyers, the state of Mississippi has many laws in place that govern mortgage brokers. All brokers must be licensed, and to even obtain a license one must complete a number of steps. First they must pay a one time fee of $750. In addition, they must have two years of experience in the industry, as well as pass a broker’s exam. Finally they must be fingerprinted, and have a criminal history investigation performed by the FBI. All these laws help potential homeowners stay protected from potential mortgage and credit fraud.