Mississippi Home Loan Program for Veterans

Mississippi Veterans Home Purchase Board (VHPB) began helping veterans at the end of World War Two with a fund of $5 million in 1946 dollars. This agency was formed in anticipation of the thousands of veterans returning home from the war who would need housing.

The mission of the Mississippi Veterans Home Purchase Board is to “aid its veterans to become rehabilitated and to become as quickly as possible self-sustaining, thereby strengthening their citizenship and expressing the gratitude of all the peoples of this state.”

The function of this Home Purchase Board is unique compared to others like it; this program offers a VA home loan “at a lower rate of interest than can be found in the private sector,” according to the official site.

The State of Mississippi is constitutionally prohibited from “loaning its credit in aid of any person” according to state law, which requires the Board to purchase property from the seller and resell it to the veteran. “In all other respects,” the official site says, “ the Agency operates as a traditional mortgage company.”

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Who Qualifies To Buy A Home With A VHPB Loan?

This program is restricted to residents of the State of Mississippi who qualify as veterans, currently serving active duty members, and currently serving members of the Guard or Reserve with more than six years of service.

Who qualifies as a veteran? Like similar programs, VHPB loans are offered to those who meet the following qualifications:

• The applicant must be a Mississippi resident, “immediately prior to entering the Military Service” OR
• The applicant has lived in Mississippi for two consecutive years before the loan application date
• The veteran must have a VA Certificate of Eligibility for a VA mortgage
• The veteran must not have a dishonorable discharge
• Reserve and National Guard personnel must have six years of service or more
• Active duty military personnel qualify if they meet the two-year residence rule
• Reserve & National Guard Personnel who have been activated for extended active duty service under Title 10 US Code are eligible
• An unmarried surviving spouse of the above described eligible veterans who died as a result of service or service-connected injuries may also be eligible

What Kinds Of Property Qualify For A VHPB Loan?

Single-family homes qualify for this type of mortgage. You may also apply for this kind of loan if you are interested in a construction loan (single-family homes only). You cannot purchase a farm, or undeveloped land with no plans to build. Other restrictions apply including:

• No mobile homes
• No townhouses
• No Condominiums
• No homes outside the state
• No absentee ownership permitted–primary residences only

The property must be a single-family residence to qualify. Permanent financing of a construction loan to construct a single-family residence is also available, subject to VA guidelines. Farms, Raw Land, Mobile Homes, Townhomes and Condominiums do not qualify. The property must be located in the State of Mississippi.

Other Restrictions

These loans cannot be used to refinance an existing equity or mortgage loan. Those who own homes at application time are “…required to divest/sell this home prior to the closing of the VHPB loan on the new purchase.” This program requires proof of divestment such as a recorded Warranty Deed.

Loan Terms

Loan terms are subject to change, but in the past VHPB loans have included the following terms:

• No down payment requirement
• Fixed rate mortgage
• The maximum loan limit is $400,000 plus the VA funding fee
• Interest rates are “typically 1 to 2 percent below market rates”
• Terms up to 30 years available
• Veterans Home Purchase Board only refinances loans “presently financed by the agency”
• Hazard insurance and taxes are collected monthly along with payments and placed in an escrow account

How To Apply

Applicants are directed to the VHPB official site for contact information.

Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News