FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in Mississippi

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In 2023, single-family home loans backed by the Federal Housing Administration (FHA) can be as high as $472,030 in the Magnolia State. FHA loans help homebuyers who have lower credit scores and more debt still be able to qualify for mortgages.

Mississippi FHA loan limits by county

County nameOne familyTwo familyThree familyFour familyMedian sale price
ADAMS$472,030$604,400$730,525$907,900$120,000
ALCORN$472,030$604,400$730,525$907,900$231,000
AMITE$472,030$604,400$730,525$907,900$108,000
ATTALA$472,030$604,400$730,525$907,900$113,000
BENTON$472,030$604,400$730,525$907,900$105,000
BOLIVAR$472,030$604,400$730,525$907,900$126,000
CALHOUN$472,030$604,400$730,525$907,900$90,000
CARROLL$472,030$604,400$730,525$907,900$119,000
CHICKASAW$472,030$604,400$730,525$907,900$89,000
CHOCTAW$472,030$604,400$730,525$907,900$228,000
CLAIBORNE$472,030$604,400$730,525$907,900$89,000
CLARKE$472,030$604,400$730,525$907,900$164,000
CLAY$472,030$604,400$730,525$907,900$123,000
COAHOMA$472,030$604,400$730,525$907,900$86,000
COPIAH$472,030$604,400$730,525$907,900$316,000
COVINGTON$472,030$604,400$730,525$907,900$244,000
DESOTO$472,030$604,400$730,525$907,900$303,000
FORREST$472,030$604,400$730,525$907,900$244,000
FRANKLIN$472,030$604,400$730,525$907,900$103,000
GEORGE$472,030$604,400$730,525$907,900$152,000
GREENE$472,030$604,400$730,525$907,900$106,000
GRENADA$472,030$604,400$730,525$907,900$137,000
HANCOCK$472,030$604,400$730,525$907,900$225,000
HARRISON$472,030$604,400$730,525$907,900$225,000
HINDS$472,030$604,400$730,525$907,900$316,000
HOLMES$472,030$604,400$730,525$907,900$316,000
HUMPHREYS$472,030$604,400$730,525$907,900$90,000
ISSAQUENA$472,030$604,400$730,525$907,900$143,000
ITAWAMBA$472,030$604,400$730,525$907,900$204,000
JACKSON$472,030$604,400$730,525$907,900$225,000
JASPER$472,030$604,400$730,525$907,900$129,000
JEFFERSON$472,030$604,400$730,525$907,900$101,000
JEFFERSON DAVIS$472,030$604,400$730,525$907,900$105,000
JONES$472,030$604,400$730,525$907,900$129,000
KEMPER$472,030$604,400$730,525$907,900$164,000
LAFAYETTE$472,030$604,400$730,525$907,900$297,000
LAMAR$472,030$604,400$730,525$907,900$244,000
LAUDERDALE$472,030$604,400$730,525$907,900$164,000
LAWRENCE$472,030$604,400$730,525$907,900$132,000
LEAKE$472,030$604,400$730,525$907,900$131,000
LEE$472,030$604,400$730,525$907,900$204,000
LEFLORE$472,030$604,400$730,525$907,900$119,000
LINCOLN$472,030$604,400$730,525$907,900$183,000
LOWNDES$472,030$604,400$730,525$907,900$200,000
MADISON$472,030$604,400$730,525$907,900$316,000
MARION$472,030$604,400$730,525$907,900$120,000
MARSHALL$472,030$604,400$730,525$907,900$303,000
MONROE$472,030$604,400$730,525$907,900$126,000
MONTGOMERY$472,030$604,400$730,525$907,900$111,000
NESHOBA$472,030$604,400$730,525$907,900$106,000
NEWTON$472,030$604,400$730,525$907,900$110,000
NOXUBEE$472,030$604,400$730,525$907,900$85,000
OKTIBBEHA$472,030$604,400$730,525$907,900$248,000
PANOLA$472,030$604,400$730,525$907,900$105,000
PEARL RIVER$472,030$604,400$730,525$907,900$196,000
PERRY$472,030$604,400$730,525$907,900$244,000
PIKE$472,030$604,400$730,525$907,900$158,000
PONTOTOC$472,030$604,400$730,525$907,900$204,000
PRENTISS$472,030$604,400$730,525$907,900$204,000
QUITMAN$472,030$604,400$730,525$907,900$69,000
RANKIN$472,030$604,400$730,525$907,900$316,000
SCOTT$472,030$604,400$730,525$907,900$134,000
SHARKEY$472,030$604,400$730,525$907,900$81,000
SIMPSON$472,030$604,400$730,525$907,900$316,000
SMITH$472,030$604,400$730,525$907,900$138,000
STONE$472,030$604,400$730,525$907,900$225,000
SUNFLOWER$472,030$604,400$730,525$907,900$110,000
TALLAHATCHIE$472,030$604,400$730,525$907,900$88,000
TATE$472,030$604,400$730,525$907,900$303,000
TIPPAH$472,030$604,400$730,525$907,900$113,000
TISHOMINGO$472,030$604,400$730,525$907,900$123,000
TUNICA$472,030$604,400$730,525$907,900$303,000
UNION$472,030$604,400$730,525$907,900$143,000
WALTHALL$472,030$604,400$730,525$907,900$159,000
WARREN$472,030$604,400$730,525$907,900$169,000
WASHINGTON$472,030$604,400$730,525$907,900$103,000
WAYNE$472,030$604,400$730,525$907,900$100,000
WEBSTER$472,030$604,400$730,525$907,900$248,000
WILKINSON$472,030$604,400$730,525$907,900$90,000
WINSTON$472,030$604,400$730,525$907,900$123,000
YALOBUSHA$472,030$604,400$730,525$907,900$109,000
YAZOO$472,030$604,400$730,525$907,900$316,000

How are FHA loan limits determined?

FHA loan limits are based on the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA). This limit changes every year, as it’s calculated from the national average home sales price in the year before. This process was established to prevent another real estate market crash, like the one that happened in 2008.

In the highest-cost areas of the nation, the Department of Housing and Urban Development (HUD) sets the top loan limit at 150% of the conforming loan limit. In the lowest-cost areas, it’s 65%. All counties in Mississippi meet the qualifications for the lowest limit, making the FHA loan limit for the state $472,030 for a one-family home. The highest median sales price in the state is $316,000, so the FHA limit should suit most buyers.

How to qualify for an FHA loan in Mississippi

FHA loans have more flexible requirements than other mortgages. There are no income limits, and because the U.S. government backs them, you can have lower credit scores and a higher amount of debt, and still be able to qualify for an FHA loan.

A 500+ credit score. On an FHA loan, your credit score can be as low as 500, even though conventional mortgages require a score of 620. However, note that the cut-off point for a larger down payment requirement is a score of 580.

At least a 3.5% down payment. If your credit score is 580 or higher, you can make the minimum down payment of 3.5%. If it’s lower, you’ll need a 10% down payment.

A maximum debt-to-income (DTI) ratio of 43% to 50%. One way lenders judge your ability to pay back your mortgage is by looking at how much you owe compared to how much you make. Most FHA mortgages set a maximum DTI ratio of 43%, but some allow exceptions as high as 50% DTI.

Mortgage insurance. A downside of FHA loans is that you must pay two kinds of mortgage insurance, no matter how much of a down payment you make. FHA loans charge an upfront mortgage insurance premium (UFMIP) that’s 1.75% of the loan amount. This fee is rolled into your loan. Then an annual mortgage insurance premium (MIP) is included in your monthly payment, which ranges from 0.45% to 1.05% of the loan amount.

An FHA loan appraisal. An FHA appraisal is different from an appraisal for a conventional loan because it can’t be waived, and the appraiser will be judging the house by FHA standards to ensure the home is safe.

Primary residence. The home you purchase with an FHA loan must be your primary residence, and you must live there for at least a year after you close on the loan. You can’t buy a second home or a rental property that you won’t live in with an FHA loan.

Buying a multifamily property with an FHA loan

You could use an FHA loan to get a multifamily home with up to four units. As long as you live in one of the units for at least a year, you’ll meet the FHA occupancy requirements and be able to rent out the other units. Other FHA qualifications such as credit score, down payment and DTI stay the same, but you’ll be able to borrow a higher amount.

If you’re looking for a multi-family home in Mississippi, the FHA loan limits are $604,400 for a two-family home, $730,525 for a three-family home and $907,900 for a four-family home.

FHA lenders in Mississippi

Lender nameLT ratingMinimum FHA credit score
PennyMac Mortgage5 stars580
Truist Mortgage4 stars580
BMO Harris4 stars580
PenFed Mortgage3 stars620

 

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