Homebuyer Assistance Program

Homebuyer Assistance Program is a deferred second loan for homebuyers in Jackson, Mississippi. HUD HOME-funded soft second from City of Jackson OHCD: up to $15,000+ at 0% with no monthly payments, deferred / forgivable over the federal HOME affordability period. Restricted to homes within Jackson city limits, 80% AMI, max purchase $156,000. The City of Jackson Homebuyer Assistance Program (HAP) is a HUD HOME Investment Partnerships Program-funded down payment / closing-cost assistance program administered by the City of Jackson Office of Housing and Community Development (OHCD). HAP provides up to $15,000 (more in some cases per OHCD subsidy-layering review) as a soft second mortgage at 0% interest with NO monthly payments. The principal is deferred during the federal HOME affordability period (typically 5-15 years depending on subsidy amount per HUD HOME rule 24 CFR Part 92) and forgiven if the borrower remains owner-occupant through the end of the affordability period. Funds may be used for down payment, closing costs, and prepaid items. Funding comes from Federal and HOME.

Homebuyer Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Deferred during HUD HOME affordability period (5/10/15 years depending on per-unit HOME subsidy). Forgiven if borrower remains owner-occupant through end of affordability period. If the borrower sells, refinances with cash-out, ceases owner-occupancy, or otherwise triggers HUD recapture before end of affordability period, the HOME subsidy is recaptured per the OHCD recapture/resale provisions. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Homebuyer Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Set by participating first-mortgage lender; OHCD does not impose a separate FICO minimum. A homebuyer education course is required, through HUD-approved housing counseling agency providing the required 8-hour homeownership education course. Residency requirement: Property must be located within the corporate city limits of Jackson, Mississippi, and remain the borrower's primary residence throughout the HUD HOME affordability period. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per HUD HOME rule and first-mortgage product overlays. Property must be located within the city limits of Jackson, Mississippi (Hinds County). Property must be the applicant's primary residence for the entire HOME affordability period. Annual household income must be at or below 80% of HUD area median income (Jackson MSA). Maximum purchase price $156,000. Applicant must complete a HUD-approved 8-hour homeownership education / counseling course. First-time homebuyer (no ownership interest in a primary residence in past 3 years) per HUD HOME rule. Property must meet HUD Housing Quality Standards / property standards.

Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size. 80% of HUD area median income (Jackson MSA) by household size. Per seed list and HUD HOME limits: approximately $46,800 (1-person) to $88,200 (8-person) for Jackson MSA. Verify current limits with OHCD. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Homebuyer Assistance Program caps the purchase price at $156,000. Eligible property types include Single-family detached, condominium, townhouse, PUD and manufactured home on permanent foundation per HUD HOME rule and first-mortgage overlays. Existing homes and new construction eligible. New construction is eligible. Manufactured homes are eligible.

Homebuyer Assistance Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Homebuyer Assistance Program serves homebuyers purchasing in Jackson, Mississippi.

Applications for Homebuyer Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application directly with City of Jackson OHCD. No lender-portal reservation; applicant submits HAP application package through OHCD. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.