HELOC Loans in Mississippi
Home Equity Line of Credit (HELOC)
Homeowners in Mississippi can use a HELOC (home equity line of credit) to tap into the value of their homes for flexible, low-interest borrowing. Whether you're renovating in Jackson, managing medical bills in Hattiesburg, or paying for education in Gulfport, a HELOC provides a revolving line of credit with variable interest rates. Most lenders in Mississippi require 15%–20% home equity and a minimum credit score of 620. If you need a one-time payout with fixed payments, a home equity loan may be the better option. Mississippi residents can find competitive rates through local banks, credit unions, and regional lenders.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
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Frequently Asked Questions
What is a HELOC and how does it differ from a home equity loan?
A HELOC in Mississippi offers a flexible line of credit secured by your home’s equity. You can draw funds during the draw period and repay them over time. A home equity loan provides a lump sum with a fixed rate and equal monthly payments.HELOCs are ideal for recurring or variable expenses, while home equity loans work well for large, predictable costs. Your choice depends on how much you need and how you prefer to repay it.
How do HELOC rates work and what affects the interest rate?
HELOC rates in Mississippi are typically variable and based on the prime rate. Your actual rate depends on credit score, equity, income, and lender-specific underwriting guidelines. Some Mississippi lenders offer fixed-rate conversions or promotional APRs. Regional banks and credit unions may provide better terms for long-standing customers. Always compare multiple offers to ensure favorable terms.
Can I qualify for a home equity loan in Mississippi with low credit?
Yes, Mississippi homeowners with lower credit scores can sometimes qualify for a home equity loan, particularly if they have strong equity and stable income. Most lenders prefer scores above 620, but some may consider applicants in the high 500s.Expect to provide detailed financial documentation and pay a higher interest rate. Credit unions and community lenders in Mississippi may offer more flexibility than national banks.
How much equity do I need in my home to get a HELOC?
In Mississippi, most lenders require at least 15%–20% equity to approve a HELOC. That means your existing mortgage should be no more than 80%–85% of your home’s current appraised value.Lenders will also review credit history, income stability, and overall debt obligations. Homes in appreciating areas like DeSoto County may offer higher credit limits based on equity growth.
Are home equity loans in Mississippi better for large expenses?
Yes, home equity loans in Mississippi are often a better choice for large, one-time expenses such as major home repairs, tuition, or medical bills. These loans provide a lump sum with fixed interest and consistent monthly payments.If your expenses are spread out or uncertain, a HELOC may be more suitable. Choose the option that matches your budget, project timeline, and repayment style.
What are typical equity rates and loan terms in Mississippi?
In Mississippi, HELOC APRs typically range from 7% to 10%, depending on credit score, equity amount, and lender. These loans usually come with a 10-year draw period and a 10- to 20-year repayment period.Home equity loans feature fixed rates with terms from 5 to 30 years. Some Mississippi lenders may offer no-closing-cost options or lower rates for auto-pay enrollment. Be sure to review all terms before choosing a loan.
