A Guide to First-Time Home Buyer Programs in Mississippi

Buying your first home is an exciting milestone, but it can also feel overwhelming—especially when it comes to financing. Luckily, Mississippi offers several programs designed to help first-time homebuyers afford their dream home. From down payment assistance to tax credits, these programs can make homeownership more accessible.

In this guide, we’ll break down the top first-time homebuyer programs in Mississippi, so you can find the right one for your needs.

1. Mississippi Home Corporation (MHC) Smart6 Program

The Smart6 Program is a great option for first-time homebuyers looking for down payment and closing cost assistance.

• Key Benefits:

• Offers up to 6% of the loan amount as down payment assistance.

• Can be used in conjunction with FHA, VA, USDA, or conventional loans.

• Forgivable after 10 years if you stay in the home.

• Who Qualifies?

• First-time and repeat homebuyers.

• Must meet income limits based on county and household size.

• Minimum credit score of 640.

2. Mortgage Revenue Bond 7 (MRB7) Program

Designed specifically for first-time homebuyers, the MRB7 Program provides lower interest rates and down payment assistance.

• Key Benefits:

• Competitive, below-market interest rates.

• Up to $7,000 in down payment and closing cost assistance.

• Can be used with FHA, VA, USDA, and conventional loans.

• Who Qualifies?

• Must be a first-time homebuyer or not have owned a home in the past three years.

• Must meet income and purchase price limits.

• Must complete a homebuyer education course.

3. Housing Assistance for Teachers (HAT) Program

This program is designed to attract teachers to Mississippi communities by offering home purchase assistance.

• Key Benefits:

• Offers up to $6,000 in down payment assistance.

• Forgivable over three years if you remain in the home.

• Who Qualifies?

• Licensed teachers working in a critical shortage area.

• Must meet income and credit score requirements.

4. USDA Rural Development Loan

The USDA Loan is a federal program that offers zero-down-payment mortgages to eligible buyers in rural areas of Mississippi.

• Key Benefits:

• 100% financing (no down payment required).

• Lower mortgage insurance costs compared to FHA loans.

• Competitive interest rates.

• Who Qualifies?

• Must purchase a home in an eligible rural area.

• Household income must fall within USDA income limits.

• Minimum credit score of 640 is recommended.

5. Federal Housing Administration (FHA) Loans

An FHA loan is a government-backed mortgage designed to make homeownership more accessible.

• Key Benefits:

• Low down payment of just 3.5%.

• More flexible credit requirements.

• Can be used with state and local assistance programs.

• Who Qualifies?

• Credit scores as low as 580 (or 500 with a higher down payment).

• Must have a steady employment history.

6. VA Loans (For Veterans and Active Military Members)

The VA Loan is a no-down-payment mortgage option available to veterans, active-duty service members, and eligible spouses.

• Key Benefits:

• No down payment required.

• No private mortgage insurance (PMI).

• Competitive interest rates.

• Who Qualifies?

• Veterans, active-duty military members, and eligible spouses.

• Must meet lender credit and income requirements.

7. Fannie Mae HomeReady & Freddie Mac Home Possible

These conventional loan programs are designed to help first-time buyers with low to moderate incomes.

• Key Benefits:

• Down payments as low as 3%.

• Reduced mortgage insurance costs.

• Can be combined with other assistance programs.

• Who Qualifies?

• Must meet income limits based on area median income.

• Minimum credit score of 620.

How to Apply for First-Time Home Buyer Assistance in Mississippi

If you’re interested in any of these programs, here’s how to get started:

1. Check Your Eligibility: Review income limits, credit score requirements, and program guidelines.

2. Take a Homebuyer Education Course: Many programs require completion of an approved course.

3. Get Pre-Approved: Work with a lender that participates in these programs.

4. Find Your Dream Home: Once you have financing in place, you can start house hunting!

Final Thoughts

Buying your first home in Mississippi doesn’t have to be overwhelming. With the right financial assistance, you can make homeownership more affordable and achievable. If you’re ready to take the next step, reach out to a local lender or real estate professional who specializes in first-time homebuyer programs.

Want to learn more? Contact us today to start your journey to homeownership!