Home Buyer Advantage (Buying Foreclosures)

Mississippi Home Corporation is participating in a program Congress established, the Neighborhood Stabilization Program. What this program offers is government grants of up to $39,999 which is to be used to reduce the principle of a mortgage when a person purchases a foreclosed home. The home has to be bank owned, bank holding company, government agency, or authorized real estate owned designated entitiy.

Here is how it works: A buyer can locate a foreclosed property using a local Realtor. Contract to purchse, then apply through your local lender, like
Mortgage 1st, Inc., for the loan. If you agree to live in the home for five (5) years, you can obtain a grant of $14,999, which can be applied at closing to reduce your principle owed. For example, you find a foreclosed property and you work out a contractural price of $150,000 and obtain an FHA loan with 3.5% downpayment. The loan amount would be $144,750, plus 1.75% MI added back to the loan, for a loan amount of $147,283.13. At the closing table you will be wired $14,999, which will reduce your principle to $132,284.13! That would make your monthly payment much less. The kicker is you must qualify for the $147,283.13 loan amount! You would save $92.97 per month on your payment. You don't have to live in the home for five years, but if you move before completing your occupancy period, then you will pay back a portion of the grant based on the number of months you lived in the home. The longer you live in the home, the less money you pay back. Live there the full five years, you owe nothing.

If you agree to live in the home for 10 years, you can receive another grant of up to $25,000 plus the $14,999 which adds up to $39,999. This grant is "Credit Score" driven, which means if your credit score is above 750, you can earn the full $39,999 for living there 10 years. The amount of the grant reduces the lower your credit scores are.

Income Limits.

Your income has to fall within certain ranges, depending which county you purchase the home. If you purchase a home in either Hinds, Rankin, or Madison Counties, and you are single your income cannot be above $47,650. If you are married, a family of two the amount rises to $54,450. With one child $61,250, and two children it goes to $68,050 etc. Call me for exact details. My phone number is 601-977-6228.

This appears to be a good, workable program. The catch is you must live in the home for either five (5) or ten years, which ever amount you decide to take.