First-Time Home Buyer Programs in Mississippi

Mississippi Home Corporation (MHC) Programs:

Smart6 Program:

Eligibility: Open to first-time homebuyers (no homeownership in the past three years) and repeat buyers purchasing a home in Mississippi.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates and a $6,000 grant for down payment or closing costs (repayable upon sale, refinance, or if the home is no longer owner-occupied).
Requirements:

• Income must not exceed county-specific limits (e.g., $99,440 for a 1-2 person household in Hinds County as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45%.
• Homebuyer education course required for first-time buyers.
• Purchase price limit of $258,000 (non-targeted areas) or $309,000 (targeted areas).

Mortgage Revenue Bond 7 (MRB7):

Benefits: Offers a 30-year fixed-rate mortgage with up to $7,000 in down payment assistance as a 0% interest deferred loan (forgivable after 10 years if the home remains owner-occupied); targets first-time buyers, veterans, or those in targeted areas.
Eligibility: Must meet income and purchase price limits (same as Smart6); requires use of an MHC-approved lender.

Housing Assistance for Teachers (HAT):

Description: Provides up to $6,000 as a forgivable grant for down payment and closing costs for teachers in critical shortage districts; forgiven after three years of service in the district.
Requirements: Must teach in a designated shortage area (e.g., Special Education, Math); income limits apply; buyer must contribute 1% of the purchase price and have one month’s reserves.

Local Programs:

Jackson

City of Jackson Homebuyer Assistance: Offers up to $15,000 as a 0% interest second mortgage (partially forgiven annually until cleared) for down payment and closing costs; income must be at or below 80% AMI (e.g., $59,300 for a family of four); home price cap at $156,000.

Vicksburg

Vicksburg Down Payment Assistance: Provides grants up to 4% of the loan amount (no repayment) or up to $25,000 over 5 years (forgiven after 5 years with deed restriction) for first-time buyers; income must be low to moderate.

Gulfport

Gulfport First-Time Homebuyer Program: Offers up to $10,000 as a deferred loan (0% interest, due upon sale) for down payment and closing costs; income capped at 80% AMI; targets low-income neighborhoods.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 40% of annual mortgage interest (max $2,000 yearly) for first-time buyers; reduces tax liability to help afford mortgage payments; combinable with MHC loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Mississippi areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.