The Homebuyer's Assistance Program helps eligible persons and households obtain a home loan through a private lender such as a bank, savings and loan, and mortgage company by providing up to $6,000 to be used as a down payment, closing costs, and other costs associated with the purchase of the home.  The funds are provided as a 0% loan that will not have to be repaid if the owner-occupant occupies the home for 5 years.  The Homebuyer's Assistance Program Brochure can be printed out and contains most of the information given below.

Person(s) applying for Homebuyer Assistance must meet the following requirements:

1. Be a first-time home buyer or not have owned a home within the past 3 years.
2. Earn less than the maximum income limit adjusted for family size.
3. Have good credit and stable income
4. Be able to afford the mortgage debt, property taxes, and insurance in accordance with the requirements of the lender.
5. Must have selected a home and have a purchase agreement.
6. Purchase the home to occupy as a principal residence.
7. Complete an approved Homeownership Training Program.

What properties are Eligible?

Properties must be single-family, detached dwelling units located within the City of Jackson.  Price and appraised value cannot exceed 95% of the loan amount limitations insurable by HUD in the Jackson area.  Since HUD loan limits are so high in Jackson, it will be easy to find a suitable house in the City that will be priced within these limits.

What are the maximum income limitations?

The combined gross annual income of all household members must be below the HUD limits for the Jackson area as outlined below.  Household size includes all members living in the household and does not include anticipated births or adoptions.

Persons must earn enough to qualify for the house loan through a conventional lender but cannot make more than the limits given below in order to receive down payment assistance.

How do I Apply?

Step One:  Complete the Application

Applicants will be taken on a first-come, first-serve basis.  If you believe that you meet eligibility requirements, fill out the Down Payment Assistance Application and return it to the City of Jackson, Office of Housing and Community Development located at 200 S. President St., Room 331, phone 601-960-1156.  A  homebuyer assistance representative will determine eligibility requirements by completing a preliminary credit check and reviewing other information on the application.  If your credit report indicates you can qualify for a loan you can go to step two.  If not, you will be given a list of companies that can help you repair your credit so you can receive the down payment assistance at a later date.

Step Two:  Homebuyer Education

This step may be accomplished simultaneously with or before step two.  The Community Development Staff will provide a list of Homebuyer Education Workshops.  You must choose one, attend the meetings and receive a certificate.  The certificate must be submitted to the City.  The homebuyer classes will teach financial skills and other relevant issues about being a home owner.

Step Three:  Bank Pre-Qualification

Applicants will be provided with a list of lenders, how to contact them, and a description of any special terms each lender may offer.  The applicant may apply to any lender the applicant feels offers the best terms.  The bank should complete your loan application and issue a Pre-Qualification letter.  Provide the City of Jackson with a copy of the pre-approval letter. 

Step Four:  Choose a Realtor

Once you choose a realtor, it is very important your realtor is made aware of the program requirements. If you are not sure of what the guidelines are, please contact the City homebuyer assistance representative, and they will help you.  Before selecting a house, be sure the homebuyer assistance representative is provided the name, address, and phone number of your real estate agent. 

Step Five:  Choose the Home and Lock in the Interest Rate

Your real estate agent will negotiate your offer to the home sellers, and, when all parties agree on the terms and sales price, a contact will be signed.  A copy will then be delivered to the lender.   Here are some things you need to know when negotiating the offer to purchase: 

• Your seller may pay for closing costs, the cost of a home inspection, and the cost of a home warranty.

• What will the payment be including taxes, insurance, principal and interest?

Please provide a copy of the contact to the City's homebuyer assistance representative.  Contact your loan officer to "lock in" an interest rate.  Additional information needed prior to closing include:  (a)  Copy of the home inspection report; (b) Homeowners insurance; and (c) Homebuyers Protection Warranty Information (if purchased). 

Step Six:  Final Walk-Through and Closing:

A final walk-through inspection should be done by the homebuyer before attending the closing.  The closing will be held in the closing attorney's office, where the seller will sign the warranty deed over to the homebuyer and the buyer will sign numerous papers, including a Deed of Trust and a Promissory Note (mortgage).  Remember to ask about the following:

• When is my first payment due?
• Where do I send my payment?
• Did I receive an amortization schedule?
• Did I receive my Home Warranty information?
• Did I ask for owner's warranties and manuals for appliances?
• Did I receive copies of all signed documents?