Mississippi Home Loan Program for Veterans

The Mississippi Veterans Home Purchase Board (VHPB) was established in 1946 to help returning World War II veterans secure affordable housing. Created with an initial $5 million fund, the program anticipated the housing needs of thousands of Mississippi service members returning home.

The mission of the VHPB is to help veterans become self-sustaining homeowners while recognizing their service to the state. The program is unique in that it offers VA loans at below-market interest rates.

Because Mississippi law prohibits the state from directly lending its credit, the Board purchases the property from the seller and then resells it to the veteran. In all other respects, the VHPB operates similarly to a traditional mortgage lender.

Who Qualifies for 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.