The Loan Minimum Is the Whole Problem
Mississippi has the lowest median home values in the country. For an investor, that is an enormous advantage: rent-to-price ratios here are among the strongest anywhere, and a portfolio that would cost seven figures in Massachusetts can be assembled for a fraction of it.
It is also the single biggest obstacle to financing one.
Most Non-QM programs will not write a loan below roughly $100,000 to $150,000, and a large share of Mississippi investment inventory prices below that. The deal works. The math works. The lender’s floor does not.
Ask every lender their minimum loan amount before you discuss anything else. Some go to $75,000. Many stop at $150,000. Knowing which is which is most of what a broker is worth in this state, and it will determine whether you can finance at all or whether you are buying with cash and refinancing later once you have aggregated enough basis.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans in Mississippi. The loan-minimum problem above is exactly what working across multiple wholesale investors solves: floors vary considerably, and a $110,000 Jackson purchase that one shelf declines outright is routine at another.
We quote DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
NQM Funding A wholesale Non-QM lender publishing Mississippi-specific 1099 guidance aimed at skilled tradesmen, alongside bank statement, P&L, DSCR, and ITIN programs. Broker channel.
Capital Home Mortgage Mississippi Mississippi operations across 1099, bank statement, asset, and DSCR programs.
Mbanc A direct lender publishing Mississippi investment property programs across bank statement, 1099, asset utilization, and DSCR, including no-ratio structures. Note they serve Mississippi for investment property only; owner-occupied requires a different lender.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Griffin Funding Publishes qualifying on 90 to 100 percent of gross 1099 income, 620 minimum credit, and loan amounts to $4 million.
NASB (North American Savings Bank) Among the longest-running alternative documentation programs in the country, with a 1099-NEC-based option.
Mississippi’s local Non-QM bench is thin, and most volume here is written by national lenders through brokers. Verify current licensure before relying on any listing — see the disclaimer at the end of this page.
The Skilled Trades Case
Mississippi’s independent workforce is heavily concentrated in the trades: electricians, plumbers, HVAC contractors, roofers, welders, and equipment operators serving construction, shipbuilding, and industrial maintenance.
These borrowers share a pattern that conventional underwriting handles badly. A tradesman grosses $110,000 in documented 1099 income and writes off $40,000 in tools, vehicle, materials, and insurance. The tax return shows $70,000. A conventional lender qualifies him on $70,000.
A 1099 program qualifying on gross receipts reads the $110,000.
And critically, a bank statement program applying a 50 percent expense factor to business deposits would penalize him a second time for the same expenses he already deducted. For the Mississippi trades borrower, the 1099 program is usually not just better; it is the only product that reflects reality.
How Qualifying Works
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Ask directly: do you qualify on gross 1099 income, and if you apply an expense factor, what is it? Some Mississippi programs also accept a CPA-verified P&L alongside the 1099s, which can strengthen a file that has grown recently.
Model the payment with our mortgage calculators before you shop.
One year or two
One-year suits a tradesman whose rates or volume improved, or who recently went independent after employment in the same trade. Some programs accept one year with strong supplemental documentation.
Two-year suits construction and industrial contracting tied to project cycles, and anyone with a storm-affected year in the recent window.
Credit minimums on many 1099 programs start in the mid-600s, which is more accessible than borrowers often assume.
Mississippi Investment Markets
Jackson metro carries the largest share of investor inventory, with the Madison and Rankin County suburbs offering steadier appreciation and Jackson proper offering the strongest raw yields.
Gulf Coast: Biloxi, Gulfport, Ocean Springs, Pascagoula supports both long-term rental demand from the shipbuilding and casino economies and a genuine short-term rental market. It also carries the state’s insurance problem, below.
North Mississippi functions partly as Memphis metro. Investors buying in DeSoto County should confirm their lender is licensed in Tennessee as well if the portfolio crosses the line.
University markets Oxford, Starkville, Hattiesburg support student rental demand with predictable cycles and values above the state average.
Wind, Named Storms, and the Coast
Gulf Coast Mississippi property carries wind and named-storm deductibles separate from the base hazard policy, and separate again from flood coverage in designated zones. Three coverages, three premiums, and all of it sits inside your carrying-cost math.
Roof age drives insurability the way it does in Florida and Louisiana. Get a real binder on the specific property before you finalize an offer price; a national estimate will understate Gulf Coast Mississippi meaningfully.
Inland Mississippi does not have this problem, and the carrying-cost difference between a Jackson rental and a Biloxi rental is larger than out-of-state investors typically model.
Other Mississippi Specifics
Non-judicial foreclosure. Mississippi permits foreclosure by power of sale, which shortens timelines materially compared with judicial states. Investors price that favorably and you will generally find better LTVs here than in Connecticut, Maine, or Florida.
Appraisal support is thin outside the metros and university towns. Build extra time into contracts in rural counties, and expect occasional low valuations where comparable sales are sparse.
Older housing stock in the urban cores brings pre-1978 lead disclosure obligations and more frequent deferred-maintenance flags.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: mid-600s floor on many 1099 programs; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA modest in absolute dollars given Mississippi values
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
Mississippi is one of the better DSCR states in the country on the numbers; rent-to-price ratios clear comfortably almost everywhere, and inland properties are not dragged down by the insurance costs that sink Gulf Coast and Louisiana ratios.
The constraint is the same one as everything else here: the loan minimum. A property that would sail through DSCR underwriting at $200,000 is simply not financeable at $95,000 by most investors.
Use DSCR where the property clears both the ratio and the lender’s floor.
Use a 1099 loan where it clears the floor but not the ratio, where it needs work before it rents, where there is no rental history, or where you are also buying a primary residence. DSCR is investment-only.
Where it clears neither, the practical route is often cash acquisition followed by a DSCR refinance once you have improved the property enough to clear the minimum.
Questions to Ask
- What is your minimum loan amount? (Ask this first in Mississippi.)
- Do you qualify on gross 1099 income, or apply an expense factor?
- Will you accept a CPA-verified P&L alongside my 1099s?
- Have you closed a Gulf Coast file recently, and how did wind coverage underwrite?
- Are you licensed in Tennessee too? (Ask this in DeSoto County.)
- Can you quote DSCR on the same property?
More from Select Home Loans: DSCR loans · DSCR refinance · Learning Center · About Select
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in Mississippi, currently offers the program described, or will approve your file.
Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure independently through NMLS Consumer Access at nmlsconsumeraccess.org.
Select Home Loans, NMLS #2384002. Equal Housing Opportunity.
