Home to the blues, catfish, and Elvis Presley, Mississippi is often overlooked by real estate investors – but it shouldn’t be. The state’s name comes from the Algonquian word for “great river,” and for the right foreign investor, it can offer great opportunities at a lower cost.
If you’re new to the U.S. real estate market, there’s a lot to learn before investing here. This guide covers key trends in Mississippi’s real estate market, financing options, and what to expect during the buying process.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
Unlike traditional loans, DSCR loans do not rely on the borrower’s personal income. Instead, they focus on the cash flow the property generates.
DSCR loans are usually considered non-qualified (non-QM), meaning they don’t follow the strict rules that come with traditional mortgages. As long as investors meet specific financial and legal requirements, they can qualify for a mortgage and invest in U.S. real estate. This option opens the door for foreign nationals to own property in high-demand areas like Mississippi.
DSCR loans provide tailored solutions to simplify your investment process. Here are the key benefits:
DSCR loans allow international investors to build profitable real estate portfolios with ease, so you can lock down that Mississippi investment property in weeks, not months.
Explore DSCR loan options.
When you’re applying for a mortgage as a foreign national, it helps to know what lenders are actually looking for. Every lender is a little different, but most focus on a few core areas. Here’s what to expect:
Most lenders: Most lenders prefer income that comes from inside the U.S. because it’s easier for them to verify. If your income is from overseas, expect to provide more documents: translated bank statements, employer pay slips, maybe even U.S. tax returns if you’ve filed them. Even with all the right paperwork, delays and rejections happen due to the simple fact that many lenders aren’t used to foreign financial systems.
Waltz: Waltz takes a broader view. If your income comes from abroad, we’ll look at what you can provide, such as local bank statements, proof of salary, and rental income from other properties. We also pay attention to the rental potential of the property you’re buying, which gives us a more complete picture of your situation.
Most lenders: Foreign nationals are often required to make significant down payments, typically ranging from 30–50% of the property’s value. Lenders may also require reserve funds to cover potential expenses like repairs, vacancies, or other contingencies, adding to the upfront financial burden.
Waltz: We know every investor’s situation is different. While 30% down is standard, some qualified buyers can put down as little as 25%. We’re also flexible when it comes to reserves. Instead of rigid rules, we look at your full financial picture and the earning potential of the property.
Most lenders: Lenders usually require valid U.S. identification, such as a passport and visa. For investment properties, loans often need to be processed through a U.S.-based LLC, which means borrowers must handle legal and administrative tasks like setting up the LLC and providing its operating agreement.
Waltz: We simplify this process for international investors. A valid passport from your home country is all we need for identification. And if you need to establish a U.S.-based LLC, our Investor Toolkit makes it quick and easy by providing an LLC and Employer Identification Number (EIN) in minutes.
Most lenders: U.S. credit scores carry a lot of weight in traditional mortgage approvals. If you don’t have one, even strong credit back home might not be enough. That gap often leads to delays or outright denials.
Waltz: We get that building U.S. credit takes time, which is why we look at your credit history in your home country instead. It’s a more realistic way to assess your reliability without holding the lack of a U.S. score against you.
Find out how international investors have benefited from working with Waltz.
Picking the right property type is crucial for steady rental income and returns. Each type has its pros and cons, along with different maintenance needs. Lenders also have their own preferences, which can affect your financing options, so it’s important to consider that when making your choice.
Here are the key property types in Mississippi to consider:
There are several reasons that Mississippi is becoming popular for foreign investors looking to invest in real estate in the US:
Mississippi offers real estate investors appealing opportunities, thanks to its rich history, scenic landscapes, and growing economy. Here are some of the state's top investment markets:
As the state capital, Jackson features a diverse economy, affordable housing, and a growing demand for rental properties. Over 32,000, or 52%, of Jackson households are renter-occupied. Plus, the city is a hub for healthcare, manufacturing, and government services, making it a solid choice for long-term property investment. Finally, Jackson has a multimillion-dollar plan in motion to revitalize the city – fixing up run-down blocks and adding new spaces like a skate park, food vendor area, and pickleball courts.
Hattiesburg combines cultural appeal with strong educational and job opportunities. The city is home to the University of Southern Mississippi and William Carey University, with the former drawing 15,000 students and boasting a business program ranked among the top 5% globally. Additionally, Hattiesburg is near Camp Shelby, the largest National Guard training facility in the U.S. These factors make Hattiesburg an attractive option for investors, offering excellent potential for rental income.
Oxford, home to the University of Mississippi, is a college town with a robust rental market, where 59% of households are renters. The annual influx of students ensures a steady demand for rental properties, while the city’s charming downtown and cultural attractions enhance its investment appeal. Additionally, home values in Oxford are rising rapidly, with sale prices increasing by over 22% in the past year.
Biloxi offers beautiful beaches, casinos, and historic landmarks, making it a prime destination for real estate investors. Its strong tourism industry and growing economy provide excellent short- and long-term rental potential. The city is steadily expanding, with the 2020 Census showing a 12% population increase since 2010. This growth is expected to continue as people move from higher-priced states like Florida and Texas, drawn to the similar climate and lifestyle of the Mississippi Gulf Coast.
Mississippi presents unique factors to consider when investing in real estate. Here are some additional considerations beyond natural disasters and market variations:
Refinancing your Mississippi investment property means swapping your current mortgage for a new one. This lets you access your property’s equity to fund other investments. At Waltz, we make the refinancing process simple and straightforward for real estate investors in Mississippi. We’ve got the experience to help you make the most of your property. For foreign nationals, refinancing typically involves:
For foreign investors eyeing the Mississippi market, this option can help adjust your current mortgage terms, potentially securing a better deal. It’s worth noting, though, that while refinancing for a lower interest rate might seem like a win, it could lead to higher total finance charges over the life of the loan.
A cash-out refinance lets you tap into your property’s equity. This involves borrowing more than your current mortgage balance. If you’re investing in Mississippi real estate, the extra funds can be used for things like home improvements, debt consolidation, or putting a down payment on another property. It’s a way to unlock cash at closing, giving you more flexibility to expand your investments.
1. Find a profitable investment
Keeping your ultimate goals in mind – are you looking for steady rental income, a vacation home, or a future flip? – locate a property that fits your plans and budget.
2. Gather essential documents
You’ll need a valid passport, proof of income (like pay stubs or bank statements), and details about the property you want to buy. Having these ready to go will make everything go more smoothly later on.
3. Select a lender experienced with foreign nationals
Work with a lender who understands the unique needs of foreign buyers, like Waltz. They’ll know how to guide you through the process and offer solutions tailored to your situation.
4. Set up an LLC and U.S. bank account2
If you're buying an investment property, you'll need a U.S.-based LLC and a local bank account to handle everything. Setting these up isn’t difficult. Waltz can help you create your LLC and get your Employer Identification Number (EIN) quickly.
5. Submit your loan application
Once everything’s in place, it’s time to submit your loan application. Make sure all your paperwork is complete and accurate to keep things moving quickly.
6. Perform due diligence
Before finalizing the purchase, make sure to do a thorough check. Get a property inspection to confirm its condition, verify the value matches your loan, and review all the terms to ensure you’re comfortable with everything.
7. Complete the purchase process
This is the big moment! Once everything checks out, sign the paperwork, transfer the funds, and make it official!
