Down Payment Path

Down Payment Assistance Programs in Mississippi

Mississippi provides a range of programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are designed to make homeownership more accessible for both first-time and repeat buyers across the Magnolia State.

Smart Solution Program

The Smart Solution Program, offered by the Mississippi Home Corporation (MHC), provides down payment assistance for eligible buyers.

  • Offers up to 3% of the home’s purchase price to cover down payment and closing costs.
  • Available as a second mortgage with deferred repayment terms.
  • Pairs with FHA, VA, USDA, and conventional loans.
  • Open to buyers who meet income and purchase price requirements.

MRB7 Assistance Program

The MRB7 Program offers competitive financing options combined with down payment assistance.

  • Provides up to $7,000 in financial aid as a deferred second mortgage.
  • Repayment is deferred until the home is sold, refinanced, or paid off.
  • Designed to work with fixed-rate mortgage options for affordability.
  • Eligibility includes income and purchase price limits.

USDA Rural Development Loans

For buyers in rural areas of Mississippi, the USDA Rural Development Loan offers no down payment financing.

  • Available to low- and moderate-income buyers in USDA-eligible rural areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be paired with MHC assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides valuable tax savings to reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be combined with MHC mortgage products and down payment assistance programs.
  • Income and purchase price limits apply but are set to include many buyers.

Local Assistance Programs

Many cities and counties in Mississippi offer additional support for homebuyers through down payment assistance programs.

  • Programs in areas like Jackson, Gulfport, and Hattiesburg provide grants or low-interest loans for down payments and closing costs.
  • Some local initiatives offer enhanced benefits for public service workers or buyers purchasing in revitalization neighborhoods.
  • Eligibility and assistance levels vary by location.

Mississippi’s down payment assistance programs aim to reduce the financial challenges of homeownership, making it more attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these programs offer valuable resources to help you achieve your goal of owning a home in the Magnolia State.