Help is Available for First-Time Homebuyers in Mississippi

Mississippi Homeowner Assistance Funds


Buying a home for the first time can be a daunting task, especially when you’re not familiar with the process. However, if you’re a first-time homebuyer in Mississippi, you have access to a range of assistance programs that can help make the journey easier. The Mississippi Home Corporation (MHC) is the state’s housing finance authority that offers several mortgage programs and down payment assistance to help you with the upfront costs of buying a home.

MHC Smart6: Competitive Mortgage Options for First-Time Homebuyers

MHC’s Smart6 program is an excellent option for first-time homebuyers in Mississippi. It offers 30-year mortgages at competitive rates and lower mortgage insurance premiums. The program includes various loan options, including Freddie Mac, FHA, VA, and USDA mortgages, which can be combined with down payment assistance funds.

The Smart Solution program is available for both first-time and repeat homebuyers who want to buy a single-family home, condominium, townhome, or duplex. It also covers manufactured homes if you choose an FHA loan. To be eligible, your household income should not exceed $110,000.

MHC Mortgage Revenue Bond 7: Assistance for First-Time Homebuyers in Targeted Areas

MHC’s Mortgage Revenue Bond 7 (MRB7) program offers a competitive interest rate and down payment assistance to first-time homebuyers, veterans, or those who plan to purchase a home in a specially designated target area. To qualify, you’ll need to meet certain criteria, including credit guidelines based on the loan you choose, such as Fannie Mae or Freddie Mac, FHA, VA, or USDA.

You’ll also need to meet income limits, which vary depending on the county. The program also has purchase price limits, with the limit being $309,000 for a home in a targeted area and $258,000 for a non-targeted area.

Mississippi Down Payment Assistance: Combining Mortgages and Assistance

MHC’s mortgages and down payment assistance are combined to make it easier for you to become a homeowner. As long as you meet the qualifying requirements for the first mortgage, you’ll be eligible for the assistance.

MHC Smart Solution Second: Assistance for Smart6 Borrowers

If you’re borrowing a mortgage through MHC’s Smart Solution program, you can also take advantage of the Smart Solution Second down payment assistance. It offers help up to $6,000 as a second mortgage at zero percent interest.

MHC MRB7 Down Payment Assistance: Assistance for MRB7 Borrowers

Through MHC’s MRB7 program, borrowers can receive up to $7,000 in a deferred, zero-interest loan to help cover closing costs and the down payment. This loan is forgivable after ten years.

MHC Housing Assistance for Teachers: Special Assistance for Teachers in Shortage Areas

MHC’s Housing Assistance for Teachers (HAT) program offers a grant up to $6,000 to eligible teachers for the down payment and closing costs. The grant is available to teachers educating in what the state has identified as “critical shortage areas” such as Special Education, Mathematics, Foreign Language, and Science. The grant will be forgiven so long as the teacher meets the program’s requirements, including:

  • Teaching for at least three years in a critical shortage school district.
  • Buying a home in the county where the district is located.
  • Contributing at least 1 percent of their own funds towards the down payment.
  • Having at least one month’s reserves.

Other Mississippi Homebuyer Assistance Programs: Mortgage Credit Certificates and More

In addition to MHC’s assistance programs, first-time homebuyers in Mississippi have access to other options, including government loan programs like FHA, VA.

Christopher Charles spent 6 years in the mortgage industry before moving into the world of digital media. He's helped thousands of families buy and refinance real estate at banks and mortgage companies and now continues that mission through industry-leading content. Chris is known for his expertise in the mortgage & real estate industry and continues to produce content all over the web.

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