Buying a home in Mississippi may be more within reach than in other parts of the country. The state offers relatively affordable real estate, especially for first-time homebuyers working with a modest budget.
Even with lower housing costs, you may still need help covering the upfront expenses of a home purchase. If you’re a first-time homebuyer in Mississippi, you could be eligible for assistance through the Mississippi Home Corporation (MHC). The state housing finance authority can connect you with mortgage programs and down payment assistance that can help with the upfront costs of buying a home. It also has special programs for certain types of borrowers.
In addition, there are national homebuying programs designed to help first-time buyers, too. Here’s a look at what the agency and others have to offer.
Mississippi homebuying statistics
- Median home price, February 2025: $253,300 (Redfin)
- Median down payment, January 2025: $14,950 (Attom)
- Most affordable counties: Quitman, Holmes, Washington, Neshoba, Winston
Mississippi first-time homebuyer programs
MHC Smart6
Mississippi Home Corporation’s Smart6 program offers 30-year mortgages paired with down payment assistance of up to $6,000. Down payment assistance comes in the form of a no-interest second mortgage loan and can be used to cover the down payment and closing costs. Borrowers can choose from a range of loan types, including FHA, VA, USDA and Freddie Mac loans. The program is open to first-time and repeat homebuyers.
The Mississippi Housing Corporation offers several other first-time homebuyer programs that function similarly to the Smart6 program, including its Easy8 and Trusty10 programs. Check out the MHC loan product page for more information and a full breakdown of each program.
Mississippi down payment assistance and grants
Home4All
Home4All is a need-based homebuyer assistance program that offers up to $25,000 in financial support to help qualified first-time homebuyers purchase a home in Mississippi. The assistance is provided as a grant to help cover down payment and closing costs.
The amount awarded is based on individual financial need and is subject to an affordability period. Participants must complete homebuyer education through a HUD-approved housing counseling agency before applying. The program supports a variety of loan types, including FHA, VA, USDA and 30-year conventional loans.
MHC Housing Assistance for Teachers
MHC’s Housing Assistance for Teachers (HAT) program offers eligible educators up to $6,000 in forgivable assistance to help cover down payment and closing costs. The program is designed to encourage teachers to work and stay in Mississippi’s designated critical shortage areas, which include specific school districts and subject areas such as math, science and special education. The funds are structured as a forgivable loan with no monthly payments, and full forgiveness is granted if teachers meet all service and residency requirements.
City-specific homebuyer assistance programs
The City of Jackson Homebuyer Assistance Program
The City of Jackson’s Homebuyer Assistance Program offers down payment assistance through nonprofit partnerships under federal HOME funds. Assistance is provided as a second mortgage with no monthly payments and zero percent interest. The loan is partially forgiven each year.
DPA 14 (Tunica and Washington Counties)
The MHC, in conjunction with the Board of Supervisors from Tunica and Washington counties, offers a competitive rate on a 30-year fixed-rate mortgage through the proceeds of the sale of Mortgage Revenue Bonds. The DPA 14 program also offers a $7,000 grant and a $7,000 forgivable loan, for total assistance of $14,000 to help borrowers with upfront costs associated with their home purchase. This program goes through April 30, 2026.
Other Mississippi first-time homebuyer loans
First-time homebuyers in Mississippi can lower their federal income taxes through a mortgage credit certificate (MCC). The MCC is a tax credit of as much as 40 percent of your annual mortgage interest, up to $2,000 a year. The idea is that the credit can help you qualify for a mortgage and make homeownership more affordable for you overall.
In addition to being a first-time homebuyer, you’ll also need to meet household income limits, which vary based on county and purchase price limits.
First-time homebuyers in Mississippi have other options besides state-level assistance, including government loan programs. These include FHA, VA or USDA loans.
- FHA loans: This government-ensured option works well for first-time homebuyers who don’t have money for a large down payment or much of a credit history. You only need 3.5 percent of the purchase price, and lenders may allow a credit score of 580 to qualify for an FHA mortgage.
- VA loans: For qualifying service members, veterans or eligible spouses, this mortgage guaranteed by the Department of Veterans Affairs doesn’t require a down payment or a minimum credit score.
- USDA loans: Like VA loans, there is no down payment required, and you may only need a credit score of 640 to qualify with USDA-approved lenders. USDA loans help first-time homebuyers purchase a home in designated rural areas in Mississippi. Check here to see if your property is eligible for this mortgage.
Conventional loans are also available to first-time homebuyers in Mississippi, some for as little as 3 percent down. Head to Bankrate’s first-time homebuyer loans and programs guide to learn more.
Get started
When you’re ready to buy your first home, consider starting with the Mississippi Home Corporation to learn about the agency’s affordable mortgage options and the specific requirements of each.
If you like what you see, you can connect with a participating mortgage lender in your area to determine the next steps.
Whichever type of financing you ultimately choose, be sure to research mortgage rates and offers to ensure you find the best rate and terms available, and take advantage of any first-time homebuying grants or national mortgage programs, like an FHA, VA or USDA loan. Also, don’t forget to compare homeowners insurance companies in the state to find coverage that best fits your needs.
Additional reporting by Maya Dollarhide
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