Splitting assets and moving out can be messy during a breakup, even more so if you are buying a house during a divorce. While separation can complicate the home-buying process, it can still be done.
Before you consider buying a house during a divorce, here are some tips to keep in mind.
Buying a House During Divorce or After Separation: What to Consider
Moving forward as quickly as possible may be tempting, but buying a house during a divorce or after separation can get complicated. It’s possible to buy a house if you aren’t legally separated, but there are many factors to consider.
1. Finalize Your Legal Documents
First and foremost, your mortgage lender will require your legal separation agreement. This is a court-ordered document used to divide assets, debts, and other responsibilities between a couple.
A mortgage is a big financial obligation and your lender will want to make sure you are capable of qualifying for a mortgage as a single homeowner.
2. Figure Out Your Financials
Next, you should figure out exactly how much you can afford. Divorce typically comes with fees and ongoing costs like attorney fees, child support, or alimony, so it’s important to find out what you’re responsible for before determining what you can afford.
Tip: If you are responsible for an existing mortgage, it will be included in your debt-to-income (DTI) ratio and could make it more difficult to buy a home during a divorce. However, if the court awarded your spouse the property, then the lender may exclude that from your DTI.
3. Remove Yourself From First Mortgage
If your spouse was given the house, you will want to make sure you remove yourself from that mortgage so that you are not legally responsible for making monthly payments. This can be done by using a quitclaim deed or by refinancing.
4. Keep Records of Payment History
If you are making payments to your spouse, this will be included in your monthly debt amount. However, if you receive monthly payments, then this can count as qualifying income. Keep records of any payment history and bring this along with your legal separation agreement to your mortgage lender.
5. Get Pre-Approved
After the divorce is finalized, you can take the first step toward getting a mortgage by getting pre-approved. A pre-approval letter can help while shopping for a home. Not only does it say how much you can afford to borrow, but it also lets sellers know that you are a serious buyer.
Is It a Good Idea to Buy a House During a Divorce?
Buying a house during a divorce is possible, but it will be more of a challenge.
If you live in a community property state, then you and your spouse must sign and notarize a quitclaim deed. A quitclaim deed transfers any interest your spouse has in the property over to you or vice versa.
Community property law says that couples who acquire property during a legal marriage own the property equally, and if a quitclaim deed is not signed, then your ex-spouse will have equal rights to your new home.
As a married couple, your spouse’s debts could also affect your ability to qualify for a government-backed mortgage. Lenders calculate your DTI using both your income and debts. If your ex is on the mortgage and has a high DTI, this could also raise your household DTI.
Evaluate your financials and determine whether this is a good time to purchase a home. While you may be able to qualify for a mortgage, it may be better to build your credit score and save money. Improving your credit score and making a larger down payment could make your monthly mortgage payment more affordable.
Are you in the market for a home loan? Total Mortgage’s loan experts are standing by to help you understand your options. We have branches across the country.
What If You Decide to Stay in Your Old Home After the Divorce?
During a divorce, the easiest way to divide the house is to sell it and divide the proceeds. But what if you want to stay in your home?
If both names are on the title, then you both have equal rights to stay in the home after a divorce. However, equal distribution of assets is typically handled in court during a divorce. For example, a judge could award you a percentage of the property based on your income or how much of the mortgage you personally paid.
If both parties want the house, then a court will decide who gets it and at what cost. If you keep the home, you may have to buy out your spouse. However, the court also takes financial viability and children into consideration.
Can You Buy a House With a New Partner Before Your Divorce?
There is no law saying you cannot purchase a home with a new partner before your divorce, but you and your ex must cooperate so that your new home is not viewed as a marital asset.
A quitclaim deed will need to be signed to transfer any interest in the property, even in community property states. You should also be careful of what funds you use to purchase your new home, like the down payment, closing costs, and other fees. The court could decide those funds were community property, which may complicate the entire process.
Consider a Home Loan With Total Mortgage
Divorces can be messy. Before buying a home during a divorce, you need to make sure you can afford a mortgage, especially if you have additional divorce obligations. A certified divorce real estate expert and a divorce attorney can help you maneuver through this process.
If you’re ready to move forward, Total Mortgage has your back. Start your application with Total Mortgage today and get your free rate quote in minutes.
Fannie Mae continues to step up its security practices, a priority it set almost a decade ago.
Speaking at an Amazon Web Services Summit in Washington D.C. Thursday, Chita Elango, senior director of application security at Fannie Mae, said the government-sponsored enterprise will further decentralize security, which will improve risk management practices across the business.
The agency is doing this by leveraging AWS to build out a solution that correlates vulnerabilities across different services, thereby increasing the deployment of secure applications. Fannie has been using AWS for security purposes since 2019. Other speakers of the event included representatives from Freddie Mac, the Central Intelligence Agency and Deloitte.
Integrating security into the government-sponsored enterprises’ DevOps pipelines has been a lengthy journey, which first started in 2015. Around that time, Fannie hired a new Chief Information Security Officer, Christopher Porter, to be in charge of the security department.
“Like every other company, Fannie had gaps. It is not perfect, we were developing applications at a very fast pace but we weren’t concentrating on security,” Elango said. “Developers would complain that there are too many tools, too many vulnerabilities and [that they didn’t know what to prioritize.]”
In response to this, the agency launched a one-year course to train its developers — the majority of whom are contractors — to become “security champions.”
“We started training developers in the form of a classroom. There would be lectures and assignments and open office hours and they would come with questions,” she said. “I’m proud to say that we have around 300 developers who are security champions who are helping this cause.”
Actions to improve the security of Fannie’s applications are ongoing, with the enterprise conducting annual risk-based assessments, such as vulnerability scans to make sure that security measures are solidly in place.
“We [work with] stakeholders where we do real simulations and if there are gaps we start fixing them,” Elango noted. “We also have vendors come in to perform external testing and some of this is unannounced [to find vulnerabilities.]”
The executive also added that its tech department is taking a modern, “shift-left” approach that makes security tooling directly available to developers, allowing them to find and remediate security issues earlier on in the application development lifecycle.
Ramon Richards, Fannie Mae’s chief information officer, earlier last year emphasized that cybersecurity would be a priority for the enterprise in 2023, along with moving some of the enterprise’s systems into the cloud.
“We’re focused on retiring our legacy assets. We don’t want to be in a place where we’ve done a lot of new cool things, but we have this technical debt, this legacy in place,” he said. “We’re very deliberate about retiring our legacy and we’ll continue to focus heavily on staying current with how cybersecurity is evolving.”
Fannie Mae’s ability to invest and modernize its technological capabilities contrasts with other housing agencies, such as the Department of Housing and Urban Development, which has been heavily criticized for its outdated information technology framework.
A recent report published by the Government Accountability Office flagged HUD’s management of its IT infrastructure and cybersecurity protocols as needing attention.
Part of this difference stems from the GSE’s having an increased budget to finance bigger modernization efforts than its counterparts.
Mortgage credit availability dipped for three consecutive months, largely due to shrinking refinance loans, according to the monthly Mortgage Credit Availability Index, (MCAI) which fell by 0.9% to 120 in May, the lowest level since July 2021, according to the Mortgage Bankers Association.
A decline of the index, benchmarked to 100 in March 2012, indicates lending standards are tightening while an increase suggests loosening credit.
“The index remains more than 30 percent below pre-pandemic levels, as credit tightening has occurred in recent months around refinance loan programs,” said Joel Kan, associate vice president of economic and industry forecasting at MBA.
Credit tightening was most notable in the government and jumbo segments, Kan added.
Both the Conventional MCAI, which does not include loans backed by the government, decreased 0.4% and the Government MCAI, which examines FHA, VA, and USDA loan programs, dropped 1.3%
Of the component indices of the Conventional MCAI, the Jumbo MCAI fell by 1.1% and the Conforming MCAI rose by 1%.
What opportunities do lenders miss out on by not focusing on credit
HousingWire recently spoke to Mike Darne, Vice President of Marketing for CreditXpert, who said focusing first on the borrower’s credit holds the key to winning business that other lenders won’t even see.
Presented by: CreditXpert
“The decrease in government credit was driven mainly by a reduction in streamline refinance programs, as mortgage rates increased sharply through May, slowing refinance activity. Jumbo credit availability, which was starting to see a more meaningful recovery from 2020s pullback, declined after three months of expansion,” Kan said.
The drop in mortgage credit availability follows a free fall of refinance applications driven by rising mortgage rates — 5.23% as of June 9 — measured by Freddie Mac. While purchase mortgage rates fell for three consecutive weeks after hitting 5.3% in the second week of May, they recently rebounded, according to the Freddie Mac PMMS, and remained high enough to still suppress refinance activity.
MBAs index for refinance applications dropped 6% for the week ending June 3 from the previous week. Compared to the same week a year ago, the index was 75% lower.
Weakness in both refinance and purchase applications drove down mortgage application volume last week. MBAs Market Composite Index dropped 6.5%, marking the lowest level in 22 years.
The persistently low housing inventory and the jump in mortgage rates during the past two months are putting pressure on the purchase market, Kan said, regarding the drop in mortgage application volume this week.
“These worsening affordability challenges have been particularly hard on prospective first-time buyers,” he said.
Today we’ll look into “LoFi Direct,” a mortgage lender based in New Jersey that considers itself one of the fastest growing lenders in the industry.
They’re dedicated to providing more, whether it’s more loan programs, support, or overall value to their clients, along with what they refer to as white-glove customer service.
While they offer the latest technology, such as a digital mortgage application and smartphone app, they believe in the need for live, human interaction when it involves a complex process like obtaining a mortgage.
Let’s learn more to determine if their hybrid approach is a good fit for your home loan needs.
LoFi Direct Fast Facts
A consumer direct lender that offers home purchase loans and refinances
Founded in 2010, headquartered in Mount Laurel, NJ
A division of parent company AnnieMac Home Mortgage
An approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae
Currently licensed to do business in 48 states and the District of Columbia
Funded more than $2 billion in home loans last year
LoFi Direct is a direct-to-consumer retail mortgage lender based in Mount Laurel, New Jersey that was founded just over a decade ago.
Despite being a relatively young company, they fund billions in home loans annually across the United States.
They offer both home purchase financing and refinance loans, with the former accounting for about two-thirds of their total annual production.
Their large share of home purchase lending can be attributed to the many real estate agent relationships they’ve forged over the years.
The company is actually a dba of American Neighborhood Mortgage Acceptance Company, or AnnieMac for short.
They are an approved seller/servicer with Fannie Mae, Freddie Mac and Ginnie Mae, meaning they can offer conforming loans and government-backed mortgages, as well as service them.
At the moment, they are licensed to do business in 48 states, with Alaska and Hawaii the only exceptions.
They appear to do the most business in their home state of New Jersey, which accounts for about 30% of total volume, along with neighboring Pennsylvania, which holds another 15% or so.
But they’re also growing out west and making a name for themselves in states like California and Arizona as well.
If you prefer to do business in person, they do have some physical branches in Florida, Maryland, and New Jersey.
How to Apply for a Mortgage with LoFi Direct
To get started simply visit their website and click on Apply (or call them directly)
You’ll be prompted to create an account for their online Loan Portal
A loan originator will get in touch to walk you through the digital application
All processing and underwriting is completed in-house for quick turnaround times
As noted, LoFi Direct believes in a hybrid approach that combines the latest technology with real human beings, seeing that getting a mortgage can be complicated.
But you can still get started on your own by visiting their website and clicking on “Apply.”
From there, you’ll be prompted to create an account, which will also serve as your Loan Portal once your application is submitted.
A loan officer will jump in to help once you’re signed up to discuss loan options, mortgage rates, and what to expect from their process.
Most tasks can be completed electronically, including the application itself, the signing of disclosures, and the scanning/uploading of paperwork.
The good news is they’re an approved seller with Fannie Mae, Freddie Mac and Ginnie Mae, and all processing and underwriting is handled in-house.
This means they can get things done quickly without having to send your file elsewhere, or seek permission from an outside investor.
You can also download the AnnieMac Home Mortgage smartphone app (which I believe works with LofiDirect) and track your loan progress on the fly, 24/7.
Home Loan Programs Offered by LoFi Direct
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Home renovation loans
Conforming loans
Jumbo loans
FHA loans
VA loans
USDA loans
Fixed-rate and adjustable-rate options available
LoFiDirect offers a ton of different loan options, whether you’re a first-time home buyer or a seasoned homeowner looking to purchase a vacation home or refinance an existing investment property.
If you already own a property, you can get a rate and term refinance or a cash out refinance. They also offer home renovation loans, such as Fannie Mae HomeStyle and the FHA 203k.
You can get a conforming loan backed by Fannie/Freddie, a jumbo loan that exceeds the conforming limit, or a government-backed loan, such as a VA loan.
Both fixed-rate and adjustable-rate options, with a variety of different loan terms to choose from like a 15-year fixed or 5/1 ARM.
LoFi Direct Mortgage Rates
For one reason or another, LoFi Direct doesn’t put its mortgage rates on its own website, so it’s not totally clear how competitive they are.
However, they do advertise their rates on third-party sites, including Zillow’s Mortgage Marketplace.
From what I saw, they were offering one of the lowest interest rates on the platform, with nearly the lowest mortgage APR (which factors in lender fees).
So there is hope that they can deliver some of the best rates out there, assuming your loan scenario fits their guidelines.
It’s also unclear what lender fees they charge, such as a loan origination fee or separate charges for things like underwriting and processing.
But the quotes I saw on Zillow were promising with regard to both rates and fees. Just be sure to speak with a loan officer to get a solid estimate and take the time to compare lenders as well.
LoFi Direct Reviews
On Zillow, LoFi Direct has a stellar 4.83-star rating out of a possible 5 from nearly 1,400 customer reviews, which is impressive given the volume of feedback.
Also be sure to check out their individual loan officer reviews, as quality can vary at a large company. Then if you find someone who stands out, you can request that person specifically.
Over at SocialSurvey, it’s a similar 4.51-star rating from about 200 reviews, with many of them perfect 5-star ratings.
Additionally, the company has a 4.4-star rating from 50 reviews on Google, and a 4.2/5 from about 25 reviews on LendingTree, with an 84% recommended score.
Lastly, while the company isn’t an accredited business with the Better Business Bureau, they do sport a perfect ‘A+’ rating based on complaint history.
In summary, LoFi Direct seems to offer low mortgage rates and fees, which their name might imply, and their self-described mission is to provide industry-leading customer service.
They also have plenty of loan programs to choose from, so they could be a good choice for both a prospective home buyer and a current homeowner looking to refi.
LoFi Direct Pros and Cons
The Pros
Can apply directly from their website in minutes
Offer a digital home loan process and online borrower portal
Appear to offer low rates
Free smartphone app
Lots of loan programs to choose from
Excellent customer reviews across all ratings sites
A+ Better Business Bureau rating
Helpful guides, mortgage calculators, and mortgage glossary on their website
Physical branches in several states
May service your loan as opposed to transferring it
By Peter Anderson11 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited July 14, 2017.
Our economy is in a downturn, investments are tanking, and every day the market reaches new lows. It can be hard to stay focused through it all and not panic. Unfortunately it seems like most investors in the market HAVE panicked already, and their fear is self-fulfilling. They’re afraid the market will tank, so when they all panic and sell, it DOES tank.
If you want to retain your sanity during these hard times, there are a few things that you shouldn’t do.
credit: dipfan
7 Things You Shouldn’t Do In An Economic Crisis
You shouldn’t listen to the media: Remember the old saying, “If it bleeds, it leads”. The media will report the bad news first, and often gloss over the good or encouraging news. Try not to take the news reports too seriously as good reporting is becoming harder to come by.
You shouldn’t forget to be positive: If you can’t stay positive, and look at the silver linings of a situation, your feelings of loss and panic will start to surface. Remember that money doesn’t bring happiness, and that the market will rebound. It may not happen as quickly as we’d like it to, but it will come around.
You shouldn’t continuously check your 401k: If you’re like me, you can’t resist the urge to be constantly checking your 401k every day. The DOW dropped 400 points? Oh my gosh, I wonder how much money I lost today! Resist the urge to keep checking your balance. Make sure you have good diversification and good allocations, and then set it and forget it.
You shouldn’t count on the government to help you: Don’t waste your time waiting around for the government to turn things around, bring you a bailout plan, and turn things around. Things will only get better for you if you make things better yourself. Create your own bailout plan, make some extra income and make a plan to succeed!
You shouldn’t stop investing for retirement: The old investing adage says, “Buy low, sell high”. The markets are tanking right now, so you’ll probably be able to find some investments in good strong companies at a fraction of their normal price. Buy it while it’s low!
You shouldn’t try and time the market: It’s a fools game to try and time the market. It’s impossible to know when the market is at it’s lowest, and when it’s at the highest. I thought it was at the low point the other day, and its dropped over a 1000 points since then. Don’t try to beat the market. Invest for the long term. Put together a nicely diversified portfolio, and then let it ride.
You shouldn’t forget that it’s only money: No matter how bad things get, remember that the sun will rise tomorrow. Even if you lose it all, your heavenly father will still take care of you. “Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own. Matthew 6:34”
Remember, this country has gone through hard times before, and we have always come out of it sooner or later. I have no doubt that this time will be the same.
So what are some things that you are going to try not to do during this economic crisis?
It may be known for blues music and catfish farming, but the Magnolia State has plenty to offer when it comes to work and play. Mississippi is home to industries from technology to agriculture, with everything in between.
If you live in the state, you’re likely hoping to find the best banks in Mississippi to fit your checking and savings account needs.
12 Best Banks in Mississippi
Whether you’re looking for a national bank, a regional bank, or a small community bank, there are so many banks in Mississippi, it’s easy to find one that meets all your needs. You may even find the options overwhelming. Here’s a list of some of the best bank accounts in the state to help you narrow it down.
1. BankPlus
Local banks bring benefits like personalized customer service. BankPlus is a local bank with branches and ATMs throughout Mississippi. One downside to BankPlus, though, is its ATM availability. If you need to withdraw cash from your checking account, you’ll have to find a BankPlus ATM to avoid the fee.
Fees:
$6 monthly service fee
$36 overdraft fee
Balance requirements:
$100 minimum opening deposit
No minimum balance requirements
ATMs:
Fee-free at BankPlus ATMs
Interest on balance:
Up to 0.05% APY on savings accounts
Up to 0.55% APY on CDs
Additional perks:
Interactive teller machines connect you with live bank representatives
Up to $1,200 in cell phone protection per year
2. Planters Bank
Planters Bank could be a great option if you’re looking for a bank with physical branches. You’ll find physical locations across Mississippi, as well as in Tennessee and Louisiana.
This bank is better for those who don’t need to regularly make cash deposits and withdrawals while traveling. You’ll have to track down a SUM Network ATM, and even then, Planters charges a $1.50 fee in addition to what the third-party bank charges.
Fees:
No monthly maintenance fees
$36 overdraft fee
Balance requirements:
$50 minimum opening deposit
No minimum balance requirements
ATMs:
Interest on balance:
Up to 2.50% APY on money market accounts
Additional perks:
Robust mobile banking features
Unlimited check writing
3. Chime
Chime is an online and mobile banking solution that has everything you need to manage your accounts in its mobile banking app. You’ll get a fee-free1 checking account and access to a savings account that pays 2.00% APY3. With qualifying direct deposits in place, Chime will spot you in up to $2005 on debit card purchases with no overdraft fees.
Fees:
No monthly fees
No fees for overdrafts
Balance requirements:
No minimum opening deposit
No minimum balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 for each out-of-network ATM transaction
Interest on balance:
2.00% APY on savings accounts
Additional perks:
4. Renasant Bank
Renasant Bank is a regional bank based in Tupelo. You’ll find 195 branches in seven states, including throughout Mississippi. There are multiple checking accounts, including a basic account that’s fee-free as long as you enroll in eStatements, have at least one direct deposit a month, or maintain a daily balance of $1,000.
Fees:
$10 monthly fee (waived with requirements)
$36 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at 225 Renasant Bank ATMs and ITMs
$3 per out-of-network ATM transaction
Interest on balance:
0.05% APY on savings accounts
Up to 4.46% APY on CDs
Additional perks:
Small business owners have a wide range of checking and loan options
Children’s savings accounts available
5. GO2bank
Another online bank is GO2bank, which offers fee-free cash withdrawals through the Allpoint ATM network. If you need to deposit cash, you can take your free debit card to one of 90,000+ retail partners nationwide.
GO2bank’s checking account is free as long as you receive at least one payroll or government benefits electronic deposit each month.
Fees:
$5 monthly maintenance fee (waived with requirements)
$15 fee for overdrafts
Balance requirements:
No minimum opening deposit
No minimum balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 for each out-of-network ATM withdrawal
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Secured credit card helps you build credit with no credit check required
Up to 7% cash back on gift card purchases
6. Cadence Bank
Cadence Bank began at the back of a hardware store in Verona, Mississippi in 1876. Over the years, Cadence has expanded to a regional bank and now has branches in Mississippi, Alabama, Arkansas, Florida, Georgia, Louisiana, Missouri, Tennessee, Texas, and Illinois.
The My Way checking account waives service fees as long as you maintain a $250 balance, have five debit card purchases monthly or at least one $100+ direct deposit, or are a student under 25.
Fees:
$8 monthly service fee (waived with requirements)
$36 overdraft fee
Balance requirements:
$50 minimum deposit to open
$250 minimum balance required
ATMs:
Fee-free at 400+ Cadence ATMs and ITMs
Interest on balance:
Up to 4.49% APY on CDs
Additional perks:
Special checking account option for seniors 62 and over
Wealth management services available
7. Ally Bank
Online and mobile banking have created an appealing alternative to big banks. Ally Bank gives you a checking account with no monthly maintenance fees and no minimum balance required.
You’ll have everything you need in the mobile app, as well as access to cash at Allpoint ATMs nationwide. But one of Ally’s best features is its competitive rates on savings accounts, CDs, and money market accounts.
Fees:
No monthly maintenance fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at 53,000+ Allpoint ATMs nationwide
Up to $10 in third-party ATM fees reimbursed monthly
Interest on balance:
0.25% APY on checking accounts
3.85% APY on savings accounts
Up to 4.80% APY on CDs
4.15% APY on money market accounts
Additional perks:
Paycheck funds available up to two days early
SpotMe covers you for up to $200 in overdrafts
8. Wells Fargo
National banks bring their own benefits, including a wide range of banking services and a vast branch and ATM network. Wells Fargo is one of the largest banks in the country, and you’ll likely find a bank branch near you.
Wells Fargo has a checking account with no monthly service fees as long as you keep a $500 balance, receive $500 or more in qualifying electronic deposits monthly, or you’re between the ages of 17 and 24. If you’re attending college, you can also enjoy a free checking account by linking your checking account to a Wells Fargo campus card.
Fees:
$10 monthly fee (waived with requirements)
$35 fee for overdrafts
Balance requirements:
$25 opening deposit required
No minimum daily balance
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 fee for out-of-network transactions
Interest on balance:
Up to 2.51% APY on savings
Up to 4.51% APY on CDs
Additional perks:
$300 for new checking accounts
Earn 20,000 bonus points with the new Wells Fargo VISA
9. Regions Bank
Regions Bank is a regional bank that operates throughout the South, Midwest, and Texas. You’ll find branches and ATMs throughout Mississippi, including DepositSmart ATMs that make it easy to make check and cash deposits.
The Regions Bank LifeGreen eAccess Account is an online and mobile banking option with no monthly maintenance fees as long as you make at least 10 debit or credit card purchases each month.
Fees:
$8 monthly maintenance fee (waived with requirements)
$36 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Regions Bank ATMs
$3 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 4.75% APY on CDs
Up to 1.50% APY on money market accounts
Additional perks:
DepositSmart ATMs make it easy to deposit cash and checks
Wealth management services available
10. PriorityOne Bank
For a smaller, community bank, look at PriorityOne Bank, which has 16 locations across Mississippi. PriorityOne offers multiple checking account options, including a basic account with all the mobile banking features you’ll need, as well as unlimited check writing. This account is $7 a month, but you can have the fee waived if you keep at least a $100 daily balance.
Fees:
$7 service fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance required
ATMs:
Fee-free at PriorityOne Bank ATMs
Interest on balance:
Up to 0.10% APY on savings accounts
Up to 1.00% APY on CDs
Up to 0.20% APY on money market accounts
Additional perks:
Check Buy-Back program pays for unused check and debit cards from your previous bank
Variety of banking options for small business owners
11. Trustmark National Bank
Another option is Trustmark National Bank, which is headquartered in Jackson. Although Trustmark National Bank qualifies as one of the big banks, it’s confined to the Southeast U.S., with 180 branches, ATMs, and ITMs.
You’ll enjoy a free checking account as long as you make at least 15 debit transactions monthly, receive at least $100 in electronic deposits monthly, or keep an average balance of $1,500. Trustmark National Bank also currently has account options for both students and small business owners.
Fees:
$10 monthly fee (waived with requirements)
$36 fee for overdrafts
Balance requirements:
$50 minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at Trustmark National Bank ATMs
$2.50 for each non-Trustmark National Bank ATM withdrawal
Interest on balance:
Rates not publicly disclosed
Additional perks:
$50 bonus for opening Trustmark National Bank student checking account
Banking options for small business owners available
12. First State Bank
Another community bank option is First State Bank, which has multiple branches in Waynesboro, as well as in Ellisville, Laurel, Leakesville, Lucedale, Meridian, Quitman, and State Line. There are multiple checking options, but the best checking account if you’re looking for a fee-free option is Kasasa Cash Checking.
Although there’s no opening deposit, you’ll have no monthly fees. Best of all, it’s a rewards checking account. You’ll also earn up to 1.00% APY on your balance.
Fees:
No monthly fees
$37 fee for overdrafts
Balance requirements:
$100 minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at First State Bank ATMs
Up to $25 in out-of-network ATM fees refunded each cycle
Interest on balance:
Up to 1.00% APY on checking account
Up to 0.25% APY on savings account
Additional perks:
Rewards checking account with no monthly fees
Travel and Leisure Club open to account holders aged 50 and over
How We Determined the Best Banks in Mississippi
Personal preferences can vary widely when it comes to a bank account. For that reason, we looked at a variety of options, including national bank branches in Mississippi and small but powerful local options.
The banks we looked at had as many as six different checking accounts and four different savings accounts. To make a fair comparison, we looked at the simplest checking account at each bank. However, in your search, you may be willing to pay a monthly fee or maintain a high minimum daily balance in exchange for features like high interest rates and cash back rewards checking account options.
We also looked at rates on savings accounts, CDs, and money markets, but if you’re interested in those features, you may want to compare the minimum opening deposit, required balance, and fees that go with those account types.
Finding Your Ideal Checking Account
If you’re shopping for a bank, chances are you want a place to park your paycheck. From there, you can add on the savings accounts and other financial products you want. Here are some things to consider as you’re researching banks in Mississippi.
Big Banks vs. Online Banks
There are benefits to a big bank with physical branches across the country. You’ll typically see a large number of checking options, which means you’re likely to find the best checking account to fit your needs. Having access to cash and in-person customer service while you’re traveling is also a big bonus.
But there are benefits to an online bank account as well. Since a free debit card is a standard feature on both online and traditional bank accounts, mobile banking is often as full-featured as a brick-and-mortar financial institution. If you’re concerned about cash access, many checking accounts now feature partnerships with national ATM networks that let you withdraw cash without paying extra account fees.
Difficult to Meet Fee-Waiver Requirements
Free checking accounts sometimes come with requirements. This may be maintaining a balance every day. That means the monthly fees will kick in if your account ever drops below that minimum.
These days, though, many banks offer an alternative to that balance minimum. The best checking accounts also allow you to waive the fee by receiving a certain number of electronic deposits each month. If your paycheck or government benefits check goes into your account once or twice a month, this should qualify you for fee-free checking.
Access to Mobile Banking Services
What matters in a bank is what you can do through your mobile device. It’s important to not only look for features like bill pay and remote check deposit, but also check to see if an account offers budgeting tools and financial advice services. This is where some banks stand out. Online-only banks and large, corporate banks may have state-of-the-art mobile services, while small banks may struggle to keep up.
When you’re looking for the best checking accounts and savings vehicles, it’s important to consider the features you need, then look for the account that will fill those needs. National banks, regional banks, credit unions, and local banks each have their own benefits. But the best banks in Mississippi are the ones who give you the conveniences you need, whether you’re traveling or staying close to home.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
3. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of May, 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.
5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
Let’s learn more about “Triumph Bank Home Loans,” a Tennessee-based community bank that is also one of the larger mortgage lenders in the nation.
At last glance, the company referred to itself as a top-15% lender in the country based on recent HMDA data, with more than a half billion in loan volume annually.
But despite growing larger over the years, their mission remains the same – to provide personalized service and help their customers triumph, whether they’re buying a home or refinancing an existing mortgage.
They say their approach involves less bureaucracy and overhead, which gives them the ability to deliver great rates AND great service. Time to dig into the details.
Triumph Bank Home Loans Fast Facts
Community bank that offers home purchase loans and refinances
Founded in 2006, headquartered in Collierville, Tennessee
Lend in every state other than California and New York
A top-15% mortgage lender in the country based on HMDA data
Have served more than 13,000 families since 2013 (fund $600+ million annually)
As noted, Triumph Bank Home Loans is an FDIC-insured community bank, meaning aside from originating home loans, they also offer savings accounts and small business loans to their customers.
They also operate both a retail and consumer-direct channel for their home loan business, meaning you can apply online and work remotely with a loan originator.
Or visit one of their retail branches in the Memphis or Nashville area to do business in person if you prefer.
They do an almost equal mix of home purchase loans and refinance loans, meaning they could be a good choice for both prospective home buyers or existing owners looking for a better rate and/or cash out.
While they lend everywhere other than California and New York, they seem to do the most business in their home state of Tennessee, along with Georgia, North Carolina, Florida, and Colorado.
About 80% of the loans they originate are conventional, conforming backed by Fannie Mae or Freddie Mac, but they also offer jumbos and government-backed loans as well.
Since 2013, they’ve helped 13,000+ families get a home loan and are a top-15% mortgage lender nationally, funding more than half a billion in loan volume annually.
How to Apply with Triumph Bank Home Loans
You can either call them directly or fill out a free rate quote form on their website
When ready you can apply online via their streamlined digital mortgage process
Their operations team will process, underwrite, and fund your loan in-house
And a dedicated loan officer and support team will be with you every step of the way
Triumph Bank says it offers a simple and fast application process, which can be completed in the palm of your hand via smartphone or on a desktop computer.
They employ the latest cutting-edge technology, but retain the personal touch of a community bank, meaning you get white-glove service from an actual human team along the way.
To get started, you can call them directly, visit their website, or go to a physical branch if one is located near you.
Once at their website, you’ve got the option of requesting a rate quote or simply diving into the application.
I always recommend discussing pricing and products first with a loan officer to ensure they have what you’re looking for, and are competitively-priced.
Assuming they have what you need, you can complete much of the application process electronically, whether it’s eSigning disclosures or uploading documentation.
One plus to using them is the fact that their operations team will process, underwrite, and fund your loan in-house, as opposed to sending your paperwork elsewhere.
This should speed up the process and improve communication and overall efficiency, resulting in a better user experience.
Loan Programs Available at Triumph Bank Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Home construction loans
Renovation loans
Conforming loans
Jumbo loans
FHA loans
VA loans
USDA loans
HELOCs
Fixed-rate and adjustable-rate options available
While you won’t find a product menu on their website, they appear to offer just about any type of home loan you could ask for.
This includes home purchase loans, mortgage refinances, and renovation loans, such as Fannie Mae HomeStyle or the FHA 203k loan program.
Additionally, you can get your hands on a conforming loan backed by Fannie Mae or Freddie Mac, a jumbo loan that exceeds county loan limits, or a government-backed loan, such as a VA or USDA loan.
Their retail bank offers home equity lines of credit (HELOCs) and portfolio mortgages as well, which may or may not be available in all states via the consumer-direct channel.
They appear to lend on all major residential property types and occupancy types, such as a single-family home, condo/townhouse, or multi-unit investment property.
Both fixed-rate and adjustable-rate mortgage options are available, including 30-year and 15-year fixed programs, along with the 5/1 and 7/1 ARM.
Triumph Bank Home Loans Mortgage Rates
While they don’t post their daily mortgage rates online, Triumph Bank Home Loans does say it offers mortgage interest rates below the national average.
Specifically, their 30-year fixed rate for conventional loans was 0.29% lower than the average from the Ellie Mae Origination Insight Report over a 17-month period from 2019 to 2020.
You might also come across their mortgage rates on comparison websites like Bankrate, where they appear to be some of the lowest listed among the many other lenders there.
They seem to charge a $995 loan origination fee, though loans can be structured at no cost using a lender credit as well.
All in all, their mortgage rate pricing seems to be comparable to other online mortgage lenders, and thus cheaper than the big banks and name brand lenders out there.
Triumph Bank Home Loans Reviews
On Zillow, they have a commendable 4.81-star rating out of 5 from about 200 customer reviews, with quite a few mentioning that the interest rate and/or lender fees were lower than anticipated.
At Bankrate, Triumph has a 4.7-star rating from over 100 reviews and 93% of customers would recommend them to others.
Additionally, they’ve got a stellar 4.9-star rating on Google from more than 300 reviews, along with a perfect 5-star rating on Facebook from 50+ reviews.
Lastly, they are an accredited business with the Better Business Bureau (since 2006), and have an ‘A+’ rating based on customer complaint history, which appears to be complaint-free.
In summary, Triumph Bank Home Loans seems to excel in both home purchase lending and mortgage refinancing, so they could be a good fit for new buyers and existing owners.
They also appear to have a very wide range of mortgage options to fit all different loan scenarios, which is a plus if you’re in need of something more unique.
And because all aspects of the loan process are completed in-house, you should be able to close quickly and efficiently.
Triumph Bank Home Loans Pros and Cons
The Good
Offer a digital home loan application process
Can apply for a mortgage without human assistance
Say they offer mortgage rates below the national average
All loan processing, underwriting, and funding is completed in-house
Tons of different loan programs to choose from
Lots of excellent reviews from past customers across all ratings websites
Free mortgage calculators, first-time home buyer toolkit, and learning center on their website
The Maybe Not
Don’t lend in California or New York
Mortgage rates and lender fees aren’t listed on their website
After falling for three consecutive weeks, purchase mortgage rates jumped 14 basis points, reflecting the expectation that the Federal Reserve (The Fed) will maintain its tightening monetary policy to fight inflationary pressures.
According to the latest Freddie Mac PMMS, purchase mortgage rates this week averaged 5.23%, compared to 5.09% the week prior. A year ago at this time, 30-year fixed rate purchase rates were at 2.96%.
The government-sponsored enterprise index accounts solely for purchase mortgages reported by lenders during the past three days.
“After little movement the last few weeks, mortgage rates rose again on the back of increased economic activity and incoming inflation data,” said Sam Khater, Freddie Mac’s chief economist.
Another index also showed higher rates this week.
Black Knight’s Optimal Blue OBMMI pricing engine, which includes some refinancing data — but excludes cash-out refis to avoid skewing averages – measured the 30-year conforming mortgage rate at 5.5% Wednesday, up from 5.42% the previous week.
Creating a path to success in today’s purchase market
Meeting the needs of a new generation of homebuyers while managing the ebbs and flows of a volatile housing market is a major endeavor for any mortgage lender. So, what should lenders be doing to thrive in the face of a post-pandemic housing market rife with new hurdles?
Presented by: Calyx
The 30-year fixed-rate jumbo was at 5.05% Wednesday, also up from 4.97% the week prior, according to the Black Knight index.
Higher rates are reducing borrowers’ demand for mortgage loans. This week, mortgage application volume dropped 6.5% from the past week to the lowest level in 22 years: Refi applications declined 6% and purchase apps decreased 7%, according to the MBA.
The housing market is incredibly rate-sensitive, consequently, demand again is pulling back, according to Khater.
“The material decline in purchase activity, combined with the rising supply of homes for sale, will cause a deceleration in price growth to more normal levels, providing some relief for buyers still interested in purchasing a home,” he said.
Overall, mortgage rates are following the Fed’s inflation-fighting monetary policy. Minutes from the Fed’s meeting earlier this month showed policymakers emphasized the need to quickly raise interest rates to bring consumer prices closer to the Fed’s 2% goal.
The central bank raised the interest rate by a half percentage point on May 4 and unveiled a plan to reduce its $9 trillion asset portfolio. The Fed also has repeatedly signaled it will continue to raise rates in 2022 and into 2023.
According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.38% with an average of 0.8 point, up from last week’s 4.32%. The 15-year fixed-rate mortgage averaged 2.23% a year ago.
The 5-year ARM averaged 4.12%, with buyers on average paying for 0.3 point, up from 4.04% the week prior. The product averaged 2.55% a year ago.
Economists expect the tightening monetary policy to reduce origination volume significantly in 2022 and 2023. The Mortgage Bankers Association expects loan origination volume to drop more than 35% to about $2.5 trillion this year, from last year’s $4 trillion. Meanwhile, the MBA expects 5.93 million home sales in 2022, compared to 6.12 million in 2021.
Fitch Ratings, however, in a May 31 report said the pace of falling mortgage originations has surpassed its expectations and it is likely to fall short of the industry forecasts by MBA and Fannie Mae.
Today we’ll deep dive into “Asset Mutual Mortgage,” a company that claims to have a reputation as one of the best mortgage lenders in Chicago.
It could have to do with their motto of “Less paperwork and more personal attention,” which should appeal to just about anyone who has ever experienced the arduous home loan process.
And thus far, their reviews seem to back up the assertion, so if you’re looking to enter the “frustration-free zone from application to decision,” they could be the lender for you.
Read on to learn about them.
Asset Mutual Mortgage Fast Facts
Direct-to-consumer mortgage lender that operates mostly online
Offers home purchase loans and mortgage refinances
Founded in 1989, headquartered in Lombard, Illinois
Currently licensed to do business in six states nationwide
Employs about 16 loan officers across two physical offices
Asset Mutual Mortgage is a direct-to-consumer mortgage lender that has been operating since 1989, led by current president Adam Karno.
They are headquartered in Lombard, Illinois, but also have a second physical location in Queen Creek, Arizona, which is a suburb of Phoenix.
At the moment, the company is licensed to do business in six states, including Arizona, Florida, Illinois, Indiana, Michigan, and Virginia.
It’s unclear if they plan to expand to additional states or focus on the ones they’re already approved to do business in.
They refer to themselves as a “local lender,” and as stated previously strive to provide a personal, human experience driven by the latest technology.
Whether you’re a prospective home buyer or existing homeowner, they’ve got solutions to suit all parties.
In Illinois and Michigan, they are also Quicken Loans Mortgage Partners, meaning you could be referred to them if Quicken (soon to be Rocket Mortgage) feels they can’t meet your needs directly.
How to Apply at Asset Mutual Mortgage
Call, email, or simply fill out a real mortgage application on their website in minutes
They offer a digital home loan experience where most tasks can be completed electronically
Once approved you can manage your loan from the online borrower portal
They aim to close loans quickly without all the unnecessary paperwork
To begin, you can either call or email to get in touch with a loan officer, or cruise right over to their website.
If you go online, you’ll be given the opportunity to fill out a short contact form on their website or jump right into the long application, which is an actual digital form 1003 that can also be completed via smartphone.
They say their long form takes anywhere from 10 to 15 minutes to fill out, at which point you’ll be prompted to sign disclosures, have your credit pulled, and lock your rate.
Once you’ve completed your application and/or received loan approval, you can log on to the borrower portal via the website to check loan status 24/7.
You’ll also be able to securely upload any necessary documents to satisfy any outstanding conditions.
All in all, they seem to utilize the latest technology to ensure the mortgage process is mostly paperless where possible, and seem to be well organized to avoid unnecessary documentation requests.
Asset Mutual Mortgage Loan Programs
Home purchase loans
Mortgage refinance loans: Rate and term, cash out, and streamline
Conventional home loans backed by Fannie Mae and Freddie Mac
FHA loans
One area where information is lacking is their loan product menu. For one reason or another, they don’t list what programs are available to customers.
As such, it’s unclear what they offer, though they appear to originate both home purchase loans and refinance loans, including rate and term, streamline, and cash out refinances.
Additionally, they appear to offer conventional loans backed by Fannie Mae and Freddie Mac, along with government-backed FHA loans.
They don’t seem to offer VA loans or USDA loans, or second mortgages.
So their lending menu looks to be a little thin, though I can’t confirm this since they don’t mention all available loan programs on their website.
You may want to call first to ensure they have the loan program you’re looking for before spending too much time filling out lengthy forms.
Asset Mutual Mortgage Rates
One slight downside to Asset Mutual Mortgage is their lack of disclosure when it comes to mortgage interest rates and lender fees.
Unlike some other lenders, they don’t post daily mortgage rates or list their lender fees online, so you’ll want to get a quote first before you apply.
Another option is to compare mortgage rates on the Zillow Mortgage Marketplace, where Asset Mutual Mortgage is often listed alongside other lenders.
I came across their listing for both a 30-year fixed and a 15-year fixed, both of which were being offered with just $1 in lender fees (basically a no cost mortgage).
And their rates were nearly the lowest on the platform, with only one or two lenders beating them in rate by .125%.
In other words, they should offer very competitive mortgage rates when compared to other online mortgage lenders, which generally are cheaper than the larger, brick-and-mortar name brand lenders.
Additionally, it appears they structure loans with no out-of-pocket fees while remaining economical, so even if they do charge lender fees, the mortgage APR may still be top notch thanks to a lender credit.
As always, put in the time to shop their rates and fees with other lenders, brokers, banks, and so on to ensure you get a good deal on your home loan.
Asset Mutual Mortgage Reviews
On Zillow, Asset Mutual Mortgage has a 4.95-star rating out of a possible 5 from over 500 customer reviews.
Aside from being near-perfect, many of those reviews indicate that the interest rate and/or closing costs were lower than expected.
If you peruse their ratings on Zillow, be sure to drill down to individual loan officer ratings to see how each employee is rated, then you can ask to work with someone specific.
Over at Birdeye, they have a 4.5-star rating from about 20 reviews, which are gleaned from Facebook, Google, and other ratings websites.
The company also boasts an ‘A+’ rating with the Better Business Bureau based on complaint history, though they aren’t an accredited business.
In summary, Asset Mutual Mortgage could be a good choice if you’re looking for a low-cost home loan, whether it’s a home purchase or a refinance.
The only question mark pertains to their product menu, which doesn’t feature on their website. That said, they might be best served for borrowers with straightforward, vanilla loan scenarios.
Asset Mutual Mortgage Pros and Cons
The Good
Offer a digital mortgage application and online borrower portal
Can apply for a home loan on your own without human assistance
Appear to offer low mortgage rates with limited lender fees
As many as one in three Americans have criminal records. And since most employers run background checks on potential candidates, these records can be a considerable impediment for those previously convicted of a felony.
In fact, according to the Sentencing Project, more than 60% of formerly incarcerated individuals are unemployed one year after being released
.
Therefore, starting and running a business may be a suitable way of earning income. Although formerly incarcerated individuals can still face challenges as entrepreneurs, a variety of small-business grants and additional resources can help.
How Much Do You Need?
with Fundera by NerdWallet
Grants for people previously convicted of a felony
Unlike small-business loans, grants provide free funding that doesn’t need to be repaid. Grants can be a particularly good option for formerly incarcerated entrepreneurs who don’t want to take on debt or have trouble qualifying for debt financing.
It’s important to keep in mind that finding and applying for small-business grants is time-consuming and entries are competitive. If you dedicate the necessary time and effort, however, you may be able to access free capital for your business.
Nonprofit and corporate grants
Formerly incarcerated individuals can get business grants from corporations and nonprofit organizations. Some nonprofits even offer second-chance entrepreneurial programs — in other words, training and funding opportunities designed specifically for previously incarcerated people.
Rise Up, Get Started Grant Program
Determination, Incorporated, a nonprofit organization based in Kansas City, Missouri, that helps formerly incarcerated individuals start and grow their own businesses.
Through the organization’s Rise Up, Get Started initiative, business owners can participate in a year-long program where they receive coaching, mentoring and community support. Entrepreneurs will also have assistance writing a business plan and creating a budget.
At the conclusion of the program, participants will have $300 saved for their business — and Determination, Incorporation will award a $750 grant on top of these savings.
The nonprofit organization also runs an in-prison Back to Business workshop, which helps incarcerated individuals develop a business plan so that they can get started quickly upon release.
Georgetown Pivot Program
The Georgetown Pivot Program is a full-time, one-year program designed to help formerly incarcerated individuals develop the skills to succeed in a business and professional environment.
Over the course of the program, participants will attend classes, receive an internship placement and get the opportunity to develop their own business idea. Each participant will present their business idea at the Pivot Pitch Competition for a chance to win startup funding. In 2022, participants were awarded a total of $15,000 in grant money.
To qualify, participants must be 25 years or older with a high school or a GED diploma who were last incarcerated within the past five years. Preference is given to Washington, D.C., residents.
The Transform Business Grant
The Transform Business Grant is open to business owners in systemically oppressed groups, including formerly incarcerated people. In addition to $1,000 microgrant, recipients will also be awarded a customized, year-long business strategy and development program. The next grant cycle runs from July 20-August 20, 2023.
LEAP Virtual Entrepreneurial Academy
LEAP is a nonprofit organization based in Florida that works with previously incarcerated women and helps them as they transition back into society. The LEAP Virtual Entrepreneurial Academy is a program that runs twice per year and teaches business skills to its participants.
Over a three-month period, students attend classes twice per week, and at the conclusion of the program, they pitch a business plan to a panel of entrepreneurs for an opportunity to win cash prizes. Graduates are also eligible to apply for a $1,000 microloan.
To qualify, you must be a formerly incarcerated woman who has access to a computer. LEAP covers all program costs through funding from its sponsors.
Amber Grant
Although not designated exclusively for previously incarcerated individuals, the Amber Grant is another great funding option for women entrepreneurs. The nonprofit organization WomensNet offers several grant opportunities to businesses that are at least 50% women-owned, including the $10,000 monthly Amber Grant and the $25,000 annual Amber Grant.
WomensNet also issues a startup-dedicated grant, a nonprofit-dedicated grant and business category grants. Each month, the organization offers a $10,000 grant to a company in a specific industry — in July, for example, the funding is awarded to an animal services business.
You can apply for all of these grants by submitting one simple application through the Amber Grant website.
NASE Growth Grant
The National Association for the Self-Employed (NASE), provides growth grants of up to $4,000 to small businesses on a quarterly basis. To be eligible for one of these grants, however, you must be a NASE member.
The organization offers several different membership options (which include additional benefits, such as expert advice and product discounts) and does not exclude formerly incarcerated individuals from joining.
Once you become a member, you can apply for a grant through the NASE website. Monthly members, however, will have to wait 90 days before they can apply. For the application, you’ll need to provide a business plan and explain why you need the funds and how you’ll use the money.
Incfile Fresh Start Business Grant
Grant winners will receive Incfile’s Gold plan for free, which includes incorporation services in your state, free registered agent services for a year and a free tax consultation. You’ll also receive a $2,500 grant.
To apply, you must complete an online application, create a two-minute video explaining how entrepreneurship will impact your life and submit a sample business plan. Incfile accepts applications three times per year.
Government grants
Individuals previously convicted of a felony can also get business grants from the federal government, as well as state and local governments. Here are some options to consider:
Grants.gov
Grants.gov is a database of federal small-business grants available to all types of entrepreneurs, including formerly incarcerated individuals. This database offers access to over 1,000 grants administered by 26 government agencies, such as the Department of Energy, Department of State and Department of Transportation.
To apply, you’ll need to register your business using the System Award Management platform and get a unique entity identification number. Once you have your number, you can create an account on Grants.gov to submit your grant applications.
Economic Development Offices
Most states and many cities have economic development offices, which are dedicated to promoting and supporting local businesses. Through your regional office, you’ll likely be able to find information regarding government funding solutions, training programs and tax incentives.
Maine’s Office of Business Development, for example, provides a variety of grant opportunities, including options that finance recreation businesses, local tourism, agriculture and food businesses, among others.
Additional resources for people previously convicted of a felony
Entrepreneurial training programs and other tools can be extremely beneficial for individuals previously convicted of a felony looking to start or grow their businesses — even if they don’t necessarily provide free funding. Finding organizations that focus on helping the formerly incarcerated transition back into society through entrepreneurship can be particularly useful.
Here are some available resources:
Help For Felons
The website HelpForFelons.org provides a wide variety of resources for those who were convicted of felonies, as well as other previously incarcerated individuals. Through the site, you can find job postings, legal information and housing options. You can also access lists of personal and business grants, loans and other forms of financial assistance.
Inmates to Entrepreneurs
Inmates to Entrepreneurs is a nonprofit organization whose mission is to help people with criminal backgrounds launch their own businesses. The organization offers free online and in-person courses to give would-be entrepreneurs the business education they need to get started.
Defy Ventures
Defy Ventures administers several second-chance programs with the goal of helping formerly incarcerated individuals succeed in their new lives and decrease the rate of recidivism. Through Defy Ventures, potential entrepreneurs can participate in an entrepreneur boot camp or a business accelerator. Through these programs, they gain the skills they need to launch and grow a business.
Project ReMADE
Project Remade is an entrepreneurship training program run by Stanford Law School. This program teaches formerly incarcerated individuals basic business skills and introduces them to professionals in the business community.
Between classes, students meet with mentor teams who help them develop a potential business plan. Mentor teams consist of one Stanford Law Student, one Stanford Graduate School of Business student and one Silicon Valley professional.
At the conclusion of the program, entrepreneurs present their business plans before a panel of executives and microdevelopment organizations.
Entre Capital
For entrepreneurs who are still looking for financing, Entre Capital is a community development financial institution (CDFI), specifically devoted to providing capital to second-chance businesses. The organization only funds previously incarcerated individuals, offering them loans to start or expand their operations.
Entre Capital also offers assistance with business planning, budgeting and financial reporting, as well as mentorship resources.
Refoundry
Refoundry is an incubator program based in Brooklyn, New York. Through this program, formerly incarcerated individuals are taught to repurpose reclaimed materials into home furnishings. As they develop these skills, Refoundry mentors also teach participants how to build a resume, succeed in an interview and start their own business.
Small Business Development Centers
Small Business Development Centers (SBDCs) are SBA-sponsored centers that provide free or low-cost training and assistance to new and existing businesses. These centers are typically hosted by local colleges or universities, as well as state economic development agencies. SBDCs often maintain lists of funding opportunities in your area and can help you find and apply for the best options for your needs.
Frequently asked questions
Are there grants for those convicted of felonies to start their own businesses?
Yes. Formerly incarcerated individuals may be able to get startup business grants from the federal government and their state or local government. Some organizations, like the National Association for the Self-Employed, also offer grants for startup businesses.
How do you get a business grant as a formerly incarcerated individual?
As a formerly incarcerated individual, you can search and apply for grants related to your business. These grants may be available from the government, nonprofit organizations or large corporations. Before applying, you should ensure you meet all of the eligibility criteria, such as industry, time in business and specific need for funds.
Are there SBA grants for those convicted of felonies?
The SBA doesn’t usually offer grants directly to any small-business owners. Instead, it grants nonprofits and community organizations that promote and support entrepreneurship. Alternatively, you might consider an SBA loan. Individuals with a felony record are not excluded from applying but will need to provide a completed fingerprint card.