Mississippi Home Corporation Programs: Getting Help with Your Down Payment

Smart 6 provides $6,000 toward your down payment and closing costs. Here’s the best part: this comes as a second mortgage with 0% interest and no monthly payments. Essentially, it’s free assistance to help you buy your home.

The $6,000 is a second loan on your house. You don’t pay anything each month for this loan. You only have to pay it back if you sell your home, refinance your first mortgage, or move out. The way I explain it to my clients is that it’s extra help that stays quiet in the background until you’re done with your home.

One of the best features of Smart 6 is that you don’t have to be a first-time homebuyer. Even if you’ve owned a home before, you might qualify. Here are the basic requirements:

• Your household income must be $122,000 or less per year
• You need a credit score of at least 640
• The home must be in Mississippi
• You must live in the home as your main residence
• You need to take a homebuyer education class

Smart 6 works with several different types of mortgages:

• FHA Loans: Government-backed loans that are easier to qualify for
• VA Loans: For veterans and active military members
• USDA Loans: For rural properties
• Conventional Loans: Regular mortgages from Fannie Mae or Freddie Mac

Easy 8 takes the assistance level higher with $8,000 for your down payment and closing costs. Like Smart 6, this comes as a second mortgage with 0% interest and no monthly payments.

The main difference is the amount of assistance you receive. Easy 8 provides $8,000 instead of $6,000. That’s $2,000 more to help you buy your home. However, Easy 8 has slightly different eligibility requirements than Smart 6.

Easy 8 targets first-time homebuyers or buyers purchasing in designated areas of Mississippi. Here’s what you need:

• You must be a first-time homebuyer (or haven’t owned a home in the past 3 years
• OR you’re buying in a “target area” of Mississippi (certain areas that need more homeowners)
• OR you’re a veteran (the first-time buyer requirement is waived)
• The home must be in Mississippi
• You must live in the home as your main residence
• You need a credit score of at least 640
• You need to take a homebuyer education class

Choosing between Smart 6 and Easy 8 depends on your specific situation. Here’s how they compare:

Smart 6 works well if you’ve owned a home before or if your household income is above the Easy 8 limits. It’s also a good fit if $6,000 is enough assistance for your situation or if you want the program with the most flexibility.

Easy 8 is the better choice if you’re a first-time homebuyer or haven’t owned a home in at least 3 years. It’s also ideal if you’re purchasing in a target area of Mississippi, if you’re a veteran, or if you need the full $8,000 to make homeownership work.

Both programs follow the same structure. Here’s what happens:

1. You Get Two Loans: When you buy your home, you receive two loans. The first loan is your regular mortgage that you make monthly payments on. The second loan is the Smart 6 or Easy 8 assistance.
2. No Monthly Payments on the Second Loan: You only make monthly payments on your first mortgage. The second loan has no payments and no interest.
3. When You Pay It Back: You only pay back the second loan when you sell your home, pay off your first mortgage, refinance, or move out. Until then, you don’t need to worry about it.

Both Smart 6 and Easy 8 can help pay for:

• Down payment: The money you pay upfront to buy the house
• Closing costs: Fees you pay when you buy the home, like appraisal fees, title insurance, and inspection fees
• Prepaid items: Things like property taxes and insurance that you pay in advance

Essentially, this money helps cover all the upfront costs that come with buying a home, not just the monthly mortgage payment.

You can use these programs to buy single-family homes, townhouses, and planned unit developments (PUDs). The most important requirement is that the home must be in Mississippi and you must live in it as your primary residence. You can’t use these programs for vacation homes or rental properties.

Both programs require completion of a homebuyer education course. The class covers important topics including budgeting for homeownership, what to expect during the buying process, home maintenance basics, common mistakes to avoid, and tips for successful homeownership. Most of these courses are available online and take just a few hours to complete. In my experience, this education helps buyers feel more prepared and confident throughout the process.

Here’s how to get started:

Find a Participating Lender

These programs are only available through approved Mississippi Home Corporation lenders. DSLD Mortgage participates in these programs and can guide you through the application process.

Get Pre-Approved

Get pre-approved for your mortgage before you begin searching for homes. Pre-approval shows you how much you can afford and demonstrates to sellers that you’re a qualified buyer.

Take the Homebuyer Education Class

Enroll in and complete your required homebuyer education course. This must be finished before closing.

Find Your Home

Work with a real estate agent to locate a Mississippi property that meets your needs and budget.

Apply for the Program

Your lender will assist with your Smart 6 or Easy 8 application and submit it to Mississippi Home Corporation for approval.

Close on Your Home

After approval, you’ll proceed to closing. You’ll sign documents for both your primary mortgage and the assistance program second mortgage. The funds are applied directly to your down payment and closing costs.

You Need to Live in the Home: The property must be your primary residence, and you must move in within 60 days of purchase.

You Need Good Credit: Both programs require a minimum credit score of 640. If your score is below this threshold, focus on improving your credit before applying.

Household Income Limits: Your household income must fall below specific limits that vary by county and family size. Your lender can confirm whether you meet these requirements.

When You’ll Pay Back the Loan: You’ll repay the second loan when you sell your home, refinance your first mortgage, pay it off, or move out. These programs work best if you plan to stay in your home for several years.

Here’s how this typically works. Michelle, a teacher in Gulfport, purchased a $180,000 home with an FHA loan. She needed $6,300 for her down payment (3.5% for FHA) and about $5,000 in closing costs, totaling $11,300 in upfront expenses. Using Smart 6, Michelle received $6,000 in assistance, which meant she only needed to save $5,300 instead of $11,300. The program reduced her upfront costs by almost half, allowing her to become a homeowner years earlier than she expected.

The reality for many Mississippi families is that monthly mortgage payments aren’t the issue. It’s saving for the down payment. Setting aside $6,000 or $8,000 while managing rent and other expenses can take years.

These programs remove that barrier. Michelle’s situation is a perfect example: she could afford the monthly payments, but saving $11,300 while paying rent would have delayed her homeownership for years. Instead of waiting, she was able to buy her home now and start building equity in her own property instead of paying rent.

The Smart 6 and Easy 8 programs from Mississippi Home Corporation make homeownership accessible for thousands of Mississippi residents each year. Whether you need $6,000 or $8,000 in assistance, these programs can help bridge the gap between where you are now and owning your own home.

If you’re ready to explore your options, reach out to DSLD Mortgage. We can help you determine which program fits your situation, walk you through the requirements, and guide you through the application process.

Your path to homeownership in Mississippi starts with understanding your options. Let’s discuss how Smart 6 or Easy 8 can work for you.