Down Payment Assistance
Down Payment Assistance in Mississippi (2026)
Mississippi homebuyers can access up to $7,000 in down payment assistance through the Mississippi Home Corporation (MHC). On the state's $175,400 median home price, that covers roughly 20% of a standard 20% down payment. Mississippi has 3 state DPA programs total.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The Smart7 caps the home purchase price at $413,610 — check that cap against homes you're considering, and the county income limit below.
Primary Program: Smart7
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- Mississippi Home Corporation (MHC)
- Purchase Price Cap
- $413,610
Additional Mississippi DPA Programs
Easy8
Deferred Loan$8,000
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Apply / Learn MoreTrusty10
Repayable Loan$10,000
A low-interest second loan on your home (on top of your main mortgage) with its own monthly payments over a set term.
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Mississippi median pre-loaded
Your Savings Plan
Timeline
5.9 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Mississippi Assistance Programs, Term by Term
Mississippi Home Corporation (MHC)
Smart7
deferred second (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- $7,000 for down payment and/or closing costs
- Repayment
- 0% interest; payable back to MHC at due-on-sale, refinance, non-owner occupancy, or when the 1st mortgage is paid in full
- Income limit
- Household annual income cannot exceed $137,870 (statewide)
- Purchase price limit
- $413,610
- First-time buyer rule
- No first-time homebuyer requirement
- Minimum credit score
- Based on servicer / participating lender guidelines (no MHC minimum published)
- Homebuyer education
- Homebuyer education required (per Smart7 flyer revised May 14, 2026)
- First mortgage it pairs with
- MHC 30-year fixed-rate first mortgage: FHA, VA, Rural Development (USDA), Fannie Mae or Freddie Mac
Easy8
deferred second (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- $8,000 for down payment, closing costs or pre-paids
- Repayment
- 0% interest; due-on-sale, payable to MHC at refinance, non-owner occupancy, or when the 1st mortgage is paid in full
- Income limit
- MRB income limits vary by county and household size (effective 5/18/2026), e.g. Hinds, Madison and Rankin: $91,400 non-target / $109,680 target for 1-2 persons; $105,110 / $127,960 for 3+ persons
- Purchase price limit
- $382,590 (target areas) / $316,373 (non-target areas)
- First-time buyer rule
- Yes — no ownership interest in a principal residence in the past 3 years; Target Areas and veterans exempt
- Minimum credit score
- Credit qualify with a participating lender (no MHC minimum published)
- Homebuyer education
- Homebuyer education required
- First mortgage it pairs with
- MHC 30-year fixed-rate MRB first mortgage: FHA, VA, Rural Development, Fannie Mae/Freddie Mac
Trusty10
amortizing second (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- $10,000 for down payment, closing costs or pre-paids
- Repayment
- 2nd mortgage at 2% interest, 15-year loan
- Income limit
- MRB income limits vary by county and household size (effective 5/18/2026), e.g. Hinds, Madison and Rankin: $91,400 non-target / $109,680 target for 1-2 persons; $105,110 / $127,960 for 3+ persons
- Purchase price limit
- $382,590 (target areas) / $316,373 (non-target areas)
- First-time buyer rule
- Yes — no ownership interest in a principal residence in the past 3 years; Target Areas and veterans exempt
- Minimum credit score
- Credit qualify with a participating lender (no MHC minimum published)
- Homebuyer education
- Homebuyer education required
- First mortgage it pairs with
- MHC 30-year fixed-rate MRB first mortgage: FHA, VA, Rural Development, Fannie Mae/Freddie Mac
Trusty10 Plus 2 (with Mississippi REALTORS®)
grant (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- additional $2,000 on top of Trusty10's $10,000; limited number of buyers, while funds last
- Repayment
- Described by MHC as a grant; forgiveness/recapture terms not published
- Income limit
- Must meet all Trusty10 requirements
- Purchase price limit
- Must meet all Trusty10 requirements
- First-time buyer rule
- Must meet all Trusty10 requirements (first-time rule with Target Area/veteran exemptions)
- Homebuyer education
- Must meet all Trusty10 requirements (homebuyer education required)
- First mortgage it pairs with
- Trusty10 (MHC first mortgage); buyer must be represented by a real estate agent
Housing Assistance for Teachers (HAT)
forgivable second (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- MS Dept. of Education assistance covers borrower funds needed to close, up to and not to exceed $6,000
- Repayment
- Grant forgiven if the licensed teacher satisfies the executed Loan Agreement requiring at least three years' employment in a critical-teacher-shortage school district
- Income limit
- No income limits unless used with another MHC loan product
- Minimum credit score
- Credit eligibility of FHA, VA, RD Guaranteed, Fannie Mae or Freddie Mac; credit score dependent upon LTV
- First mortgage it pairs with
- 25- or 30-year fixed FHA, VA, RD Guaranteed, Fannie Mae or Freddie Mac loan; may be combined with Smart7, Easy8, Trusty10 or JustRate. Buyer must contribute 1% of sales price from own funds plus one month's reserves
Home4All (HOME-funded homebuyer assistance)
grant (Mississippi Home Corporation, retrieved 2026-09-14)
- Assistance
- up to $25,000; based on the homebuyer's need; cannot exceed 50% of the purchase price
- Repayment
- Grant subject to an affordability period (length not stated on the page)
- Income limit
- Household income below 80% of median income, adjusted for family size
- Purchase price limit
- Purchase price limits vary by county (flyer lists existing/new limits by eligible county)
- First-time buyer rule
- Cannot have owned or had an interest in a principal residence within the past three years
- Homebuyer education
- Homebuyer education required through a HUD-approved housing counselor
- First mortgage it pairs with
- Permanent fixed-rate mortgage through an MHC-approved lender: FHA, VA, USDA RD Direct or Guaranteed, or approved Fannie Mae/Freddie Mac 30-year conventional with PMI; must be in an eligible area
What the Assistance Does on a $175,400 Mississippi Home
A worked example at Mississippi's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Mississippi salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $175,400 home is $17,540, and 20% is $35,080. The $7,000 Smart7 maximum covers 40% of the first and 20% of the second, leaving $10,540 of a 10% down payment to come from savings, before any closing costs.
Whether a household under the income limit can carry it
Carrying the median home takes $55,457 a year with 20% down, or $63,043 with 10% down and PMI. The first-mortgage income limit at Mississippi Home Corporation is $137,870 (Smart7, statewide (MRB programs Easy8/Trusty10/JustRate vary by county and family size, e.g. $97,320 1-2 persons in target counties)). (Mississippi Home Corporation, retrieved 2026-09-14) A household at that limit clears both figures, so the median home sits inside the programme's range: incomes from $63,043 up to $137,870 can carry it with 10% down. At exactly $137,870, the same model supports a price of about $503,876, but the $413,610 purchase-price limit stops the programme first, so for a household near the income limit the price limit, not income, is what binds.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Mississippi
Mississippi Home Corporation: Smart7 (30-year fixed-rate mortgage with $7,000 second mortgage); also Easy8, Trusty10, JustRate
Smart7 (30-year fixed-rate mortgage with $7,000 second mortgage); also Easy8, Trusty10, JustRate is the first-mortgage programme run by Mississippi Home Corporation. (Mississippi Home Corporation, retrieved 2026-09-14) Its purchase-price limit is $413,610 (Smart7, statewide; Easy8/Trusty10/JustRate: $382,590 (target areas) / $316,373 (non-target areas)), so a $175,400 home is within it. (Mississippi Home Corporation, retrieved 2026-09-14) The income limit is $137,870 (Smart7, statewide (MRB programs Easy8/Trusty10/JustRate vary by county and family size, e.g. $97,320 1-2 persons in target counties)). (Mississippi Home Corporation, retrieved 2026-09-14) Down payment help comes through Smart7 second mortgage: $7,000 second mortgage at 0% interest, principal due upon sale, loan repayment or maturity (Easy8: $8,000 at 0%; Trusty10: $10,000 at 2% repaid over 15 years). (Mississippi Home Corporation, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Mississippi?
Mississippi's primary DPA program is the Smart7, administered by the Mississippi Home Corporation (MHC). It provides up to $7,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then. Additional programs include Easy8 and Trusty10.
How much down payment do I need in Mississippi after using DPA?
On a $175,400 home (Mississippi median), a 20% down payment is $35,080. With the Smart7 covering $7,000, your remaining gap would be $28,080. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Mississippi down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine Mississippi DPA with other assistance programs?
Mississippi's state DPA may have restrictions on combining with other assistance programs. Verify stacking rules with an approved lender before applying.
What are the income limits for Mississippi down payment assistance?
The Smart7 does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Mississippi Home Corporation (MHC) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Mississippi
PMI Calculator
Estimate private mortgage insurance on lower down payments
Mississippi First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Mississippi, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Mississippi Home Corporation (MHC) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Mississippi for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about Smart7 when you apply.