MISSISSIPPI HOME CORPORATION
MORTGAGE REVENUE BOND PROGRAM
Buying a home just got easier! The
Mississippi Home Corporation is releasing the
new SERIES MRB 2011A-11 GO Zone Target
Bond Issue of $18,269,736. The MRB 2011A-11
Mortgage Revenue Bond issue is using a
revised version of the Down Payment Assistance
program with a 3.510% interest bond rate
(subject to change) and the 2nd mortgage rate
will match the first mortgage rate.
If the borrower needs down payment and
closing cost assistance, then they have the
option to use funds now set aside under this
bond issue for the Down Payment Assistance
funds. The difference with the guidelines is
that all bond guidelines apply with the
exception of the maximum loan amount. The gross
household income cannot exceed the lower of the
two programs and a separate attachment to this
bulletin a new income chart has been provided
that has incorporated the lower of the two
programs income limits.
This bond rate is effective with loan
applications (1003) taken as of August 24, 2011.
The following loan programs are allowable under
the issues:
- Federal Housing
Administration (FHA):
In addition to FHA Section 203/7(b), MHC
also allows the following FHA options:
(i) 203(k) Rehab.
(ii) 203(h) Disaster Relief 100% loan and
(iii) FHA 2-1 Buydown
- Veterans Administration
Loan Program (VA);
- Rural Development 502 Guaranteed Loan
Program (RD);
- Fannie Mae Conventional Products –
Applicable only if not using the Down Payment
- Freddie Mac Conventional Products -
Applicable only if not using the Down Payment
1st MTG. LOAN TERM: 30 Years
2nd MTG. LOAN TERM: 10 Years
BOND MATURITY DATE: December 1, 2041
2nd Mortgage Loan: 3% of final loan amount
can be applied to no more than a 1.5%
Origination fee (not required to be charged),
down payment and buyer paid closing costs (excluding
prepaid items). Discount points cannot
be charged to buyer or seller. Any funds
remaining at time of closing must be applied as
a principal reduction and reflected as such on
the HUD-1, pg. 2 under Borrower column.
The following rules will apply to borrowers
in the counties of Hinds, Madison and Rankin:
A person cannot have owned a home in the
past three years. The past three years of
Federal Tax returns will need to be provided
as proof.
- In the Katrina counties the first time
home buyer requirement is waived.
- Income limit for a family of 1-2 people
is $69,600; if you have a family of 3 or
more it is $81,200.
The acquisition limit
(maximum sales price) on existing properties and
new construction is Target = $289,705 (Katrina
Counties)
Non-Target = $237,031
There is a potential "Recapture Tax" paid to
the Federal Government, if you should sell or
have a disposition of the property within the
first ten years.
The following occurrences do NOT require a
"Recapture Tax":
- Property is transferred to a spouse or
former spouse as a result of divorce.
- Property is transferred as a result of
your death.
- Involuntary transfer of property due to
destruction by fire or other casualty will
not trigger recapture if you purchase a
replacement home.
- If there is NO gain on the sale of the
property.
- Your income in the year you sell the
property doesn’t exceed the modified
adjusted gross.
- Property was sold 10 years after the
loan closed.
The maximum recapture that you would pay is
the lesser of 6.25% of the original mortgage
amount or 50% of the "gain" on the sale of
property. Generally speaking, the recapture rate
is minimal compared to the benefit you receive
if approved for the bond program.
If you are thinking of purchasing a home and
would like to take advantage of this great
opportunity, contact Paula Ricks who provides
"Superior Service… Remarkable Results" at
601-942-3392 or email
Paula@KeyTrustProperties.com today! |
