Buying Home In Mississippi With Bad Credit and 500 FICO

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss buying home in Mississippi with bad credit with 580 FICO scores. We can help you buying home in Mississippi with bad credit with lower credit scores. Gustan Cho Associates is licensed in 48 states and has a large presence in Mississippi. Apply NOW with Gustan Cho Associates and leave it to us to qualify you and get you approved for a mortgage. There are many mortgage loan options if you are buying home in Mississippi with bad credit and low credit scores. In the following paragraphs, we will be going over the various loan programs for borrowers buying home in Mississippi with bad credit and lower credit scores.

What is The Best Mortgage For Bad Credit in Mississippi

The housing market in Mississippi is booming. Mississippi has one of the most affordable housing markets. The state also has lower property taxes and cost of living. Many home buyers who are priced out of the market in Florida, Texas, Georgia, and other states are looking at buying a home in Mississippi with bad credit. There are many mortgage programs for homebuyers with bad credit and lower credit scores. Due to the strong housing demand, home inventory is beginning to pose a problem. Housing prices are expected to increase in 2021 and into 2022. Shortage of home inventory means multiple purchase offers. This is not good for those buying homes in Mississippi. 

Mortgages For Borrowers With Bad Credit in Mississippi

Many people with bad credit were waiting on the sidelines until their credit profile improved. The rate at the housing market is skyrocketing, and waiting for a home will most likely get the person priced out of the housing market. Gustan Cho Associates has mortgage options for home buyers planning on moving to Mississippi without a job yet. We will discuss non-QM mortgages with no income documentation in Mississippi in the next paragraph. We will go over the various government, conventional, jumbo, and non-QM loans that Gustan Cho Associates offers in Mississippi.

How Much Down Payment Do I Need To Buy a House in Mississippi?

Many people who dream of owning a home are under the impression you need perfect credit and a 20% down payment to buy a home in Mississippi. That is not true. There are many mortgage loan programs for homebuyers with bad credit. We will be going over qualifying for a mortgage with bad credit in the following paragraphs.

Minimum Credit Score To Buy a House in Mississippi For 2022

The minimum credit score requirement to qualify for an FHA loan in Mississippi is 500 FICO. The minimum credit score you can qualify for a VA loan is 500 FICO. Non-QM loans can go down to a 500 credit score. We have non-QM jumbo loans that require a minimum credit score of 550 FICO. Every mortgage loan program has its own credit score requirements.

What Are Non-QM Mortgages in Mississippi

Before we dig into the minimum credit score requirements on non-QM loans in Mississippi, let’s discuss what non-QM home loans are. Non-QM loans stand for non-Qualified Mortgages. The Consumer Financial Protection Bureau, known as the CFPB, is the enforcement agency for mortgage lenders. The CFPB Rule on non-Qualified mortgages sets strict guidelines on charging borrowers excessive-high rates, fees, costs, and discount points. All lenders need to reasonably believe borrowers have the ability to repay and not sell them loans borrowers will have stress in making timely payments. FHA, VA, USDA, and conventional loans are all Qualified Mortgages. Non-QM home loans are alternative mortgage programs in niche and/or specialty markets that do not fall under CFPBs QM Rule general guidelines. Non-QM loans require at least a 20% down payment or higher and have higher mortgage rates than traditional mortgage loans. 

Traditional Versus Non-QM Home Loans in Mississippi

We will cover and discuss FHA, VA, Conventional, Jumbo, and non-QM loans for Mississippi home buyers and the credit and income requirements. There are numerous mortgage loan programs for borrowers with bad credit and lower credit scores.  In this the following paragraphs, we will discuss and cover buying home in Mississippi with bad credit with a lender with no lender overlays on government and conventional loans.

FHA Loans For Bad Credit In Mississippi

Real estate experts are confident that the Mississippi housing markets will be good for both home buyers and sellers well into 2023. This holds true despite surging inflation numbers, high mortgage rates, and the shortage of affordable housing in the $300,000 to $400,000 price range. The best mortgage loan programs for buying home in Mississippi with bad credit are FHA, VA, and non-QM loans. FHA and conventional loans are government-backed loans.

VA Loans With Bad Credit in Mississippi

Buying home in Mississippi with bad credit with a VA loan is more than possible and can be done. VA does not have a minimum credit score requirement. The team at Gustan Cho Associates has closed thousands of VA loans with credit scores down to 500 FICO. You do not have to pay outstanding collections and charged-off accounts to qualify for a VA loan with us at GCA Mortgage. 

Best Way To Buying Home in Mississippi With Bad Credit 

Alex Carlucci, a senior mortgage advisor at Gustan Cho Associates. and licensed in Mississippi issued the following statement:

Some areas have experienced a lack of inventory, but not in all price ranges. Houses under $250,000 are in demand and sell quickly.  Houses under $150,000 are desirable to both purchasers and investors so they not only sell quickly, they often have multiple purchase offers submitted. The increase in mortgage interest rates does not appear to have impacted purchasers who want to buy in the area.  Qualified buyers are still able to obtain affordable loans. Mississippi is fortunate to have home prices that are more economical than in many other areas of the country. The home building industry has been steady in Mississippi. It is not like the Texas or Dallas market, but our building has been steady. The $200,000 homes, we can’t build enough of them if you can even build them for $200,000. Smaller homes are in demand. Larger the home is, the more days the house is going to sit on the market. The upside of this is because our pricing on houses is average, not really high like California or other areas. If there is ever a downturn in the market, Mississippi won’t feel the effect as much. We do have a shortage with our starter homes. But, again, you can’t build a $200,000 home in other areas. In California, it might be twice that much for the same home. It is very expensive to live in California. New York is another place the cost of housing is high. Mississippi homeowners is fortunate to live in a state where the housing in more affordable.”

A large percentage of Alex Carlucci’s borrowers are Mississippi home buyers. Alex is considered the Mississippi Housing Market Expert at Gustan Cho Associates. Alex Carlucci has countless realtor partners and other real estate professionals in Mississippi. 

Buying a Home in Mississippi With Bad Credit with Non-Prime Loans

Due to the government guarantee, lenders can offer FHA and VA loans with less than perfect credit and little down payment. Non-QM loans benefit borrowers with bad credit and low credit scores. However, non-QM loans require a 20% or higher down payment. We will cover the various mortgage options throughout this blog on the individual best loan programs for bad credit and lower credit scores. Government and conventional loans have specific agency mortgage guidelines.

Comparison of Between FHA and Non-QM Loans in Mississippi

The great benefits of FHA, VA, USDA, and conventional loans are due to the government and/or GSEs backing, homebuyers can purchase a home with bad credit and little to no down payment. Non-QM loans are great portfolio mortgage loan programs for bad credit, borrowers who are self-employed, borrowers who need a no-doc loan, or other types of borrowers with unique financial circumstances. However, non-QM loans require a 20% or higher down payment. Non-QM loans are a great tool for borrowers with bad credit, poor credit scores, and recent late payments.

The Best Mississippi Mortgage Lenders For Bad Credit

Michelle McCue, an associate contributing editor and senior mortgage advisor at Gustan Cho Associates said the following:

Home buyers buying home in Mississippi are looking for amenities and not necessarily square footage. Most of my Mississippi pre-approved borrowers are looking for homes in areas close to community conveniences. My referral real estate partners encourage my borrowers to search the public websites BuyInMississippi.com and Realtor.com and check out the available homes and contact them to arrange a showing. Higher rates might keep buyers from purchasing the home they really want. As interest rates go up, the buyer’s ability to borrow money goes down.

Buying Home In Mississippi With Bad Credit With Relocating Without a Job?

Out of State Taxpayers Migrating and Buying Home In Mississippi With Bad Credit Due To Low Taxes

Mississippi is unlike New York and California where residents are moving out of their state due to high home prices and high taxes. There are much more residents moving into the state than moving out. The reason many residents are moving to Mississippi is due to affordable housing and the low cost of living. Housing in all counties of Mississippi is strong with no signs of a housing correction despite high rates. Sales are up over 7.5% each year for the past three years. Home prices have been slowly increasing at a rate of 4.7% each year for the past seven years. 

Non-QM Mortgages With No-Doc in Mississippi

Many people in high-taxed states have thrown in the towel and said enough is enough. They made up their minds in relocating to low-taxed states like Mississippi. Many homebuyers ask how they can purchase a home in Mississippi if they don’t yet have a job there but plan on moving. There are many possibilities in structuring a mortgage for a home you are buying in another state. Buying it as a second home with a 10% down payment will be one of many options. Remote workers will have no issues. Getting non-occupant co-borrowers will be another option. GCA Mortgage has non-QM loan programs in Mississippi which include no-doc mortgages, asset depletion, stated-income, and dozens of other types of alternative financing options.

Best Mississippi Lenders For Employment Offer Letter Mortgages

Homebuyers buying homes in Mississippi and relocating from another state need to qualify for a mortgage. Gustan Cho Associates is a mortgage company licensed in multiple states with no lender overlays on government and conventional loans and is licensed in Mississippi. If a home buyer is transferring from one state to another state from a current employer, they will have no issues.

Demand For Homes Surging Due to Remote Workers Migrating to Mississippi

For homebuyers who have remote jobs, there are no issues in getting approved. However, if a home buyer got a new job in Mississippi with a new employer, Gustan Cho Associates can offer a loan approval with just an offer employment letter by the new employer on conventional loans. FHA Loans require an employment offer letter plus 30 days of paycheck stubs by the new employer to close.

How To Avoid Getting Priced Out of Mississippi’s Housing Market With Bad Credit

Buying Home In Mississippi With Bad Credit and Not Get Priced Out of the Housing Market

All mortgage lenders need to meet agency mortgage guidelines by FHA, VA, USDA, Fannie Mae, and Freddie Mac. However, lenders can have higher credit and income requirements that are above and beyond agency guidelines. These additional guidelines are called lender overlays. For example, according to FHA guidelines, borrowers can qualify for a 3.5% down payment FHA Loan with a 580 credit score. However, most lenders will require a 620 to 640 credit score by borrowers even though FHA only requires a 580 FICO. This higher requirement is lender overlays by the lender. Gustan Cho Associates has no overlays on government and conventional loans. Contact us at 262-716-8151 or text us for a faster response. Or email us at [email protected]