Mississippi's First-Time Buyer Rule Has Three Exits
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Having owned a home before is the most common reason buyers assume assistance is closed to them. In Mississippi it usually is not.
What is a first-time homebuyer in Mississippi?
MHC's test is not literal. You qualify as a first-time homebuyer if you have not owned a principal interest in a residence in the past three years, so a previous owner who has rented for three years is first-time again for program purposes.
MHC's own buyer guide says it plainly: if you have never owned a home, or have not had a primary interest in a home within the past three years, you are considered a first-time homebuyer.
Exit 1: Smart7 does not ask
MHC lists it as a Smart7 feature: the program is not limited to first-time homebuyers. No target area needed, no veteran status needed, no three-year wait.
This is the simplest answer for a previous owner, and it comes with the highest income ceiling in the state at $137,870 and the highest price cap at $413,610. The cost is $1,000 less than Easy8 pays. Smart7 in full.
Exit 2: half the state is a target area
Federal bond rules under 26 U.S.C. §143 let a state designate targeted areas where the first-time requirement does not apply. MHC designates forty-two Mississippi counties as target areas end to end.
In those forty-two, a current homeowner can use Easy8, Trusty10 or JustRate with no exemption to claim. The county does it for them. A further thirty counties are split, containing both kinds of area, so the property address decides. Which counties are which.
Exit 3: veterans are exempt
MHC publishes the exemption on Easy8, Trusty10 and JustRate: target areas and veterans are exempt from the first-time homebuyer rule. It applies statewide, independent of where you buy.
This is the exit most often missed, because MHC states it at the end of a sentence about geography. How it works and what to bring.
Which exit applies to me?
| Your situation | Best route |
|---|---|
| Owned a home in the last 3 years, income under $137,870 | Smart7 |
| Owned recently, buying in one of the 42 all-target counties | Easy8 or Trusty10, no exemption needed |
| Owned recently, veteran | Easy8, Trusty10 or JustRate |
| Owned recently, split county, not a veteran | Check the address; Smart7 if the answer is non-target |
| Owned recently, one of the 10 non-target counties, not a veteran | Smart7 — the only route |
| Never owned, or 3+ years out | All four MHC products are open |
What if I am in one of the ten non-target counties?
Itawamba, Lawrence, Leake, Lee, Pontotoc, Smith, Tate, Tishomingo, Union and Yalobusha have no target areas at all, so there is no address to check and no geographic exit.
For a previous owner buying there, the routes are the veteran exemption or Smart7. And since those ten counties also carry the state's tightest income limits, often $81,100 for a one-or-two-person household, Smart7's $137,870 statewide figure tends to be the answer on two counts at once.
Does a divorce change my status?
The test is whether you held a principal interest in a residence during the three-year window, and ownership structures after a divorce vary considerably. We are lenders rather than attorneys, so we will not interpret your decree.
What we will do is review the documentation with you and confirm MHC's position on your specific facts before it reaches your file. Call (480) 296-6513.
Frequently asked questions
What counts as a first-time homebuyer in Mississippi?
MHC treats you as a first-time homebuyer if you have not owned a principal interest in a residence in the past three years, so a previous owner who has rented for three years qualifies again. Smart7 does not apply the test at all, and Easy8, Trusty10 and JustRate waive it in target areas and for veterans. Verified against MHC 2026-10-06.Can I get Mississippi down payment assistance if I have owned a home before?
Usually yes, by one of three routes. Smart7 has no first-time homebuyer requirement anywhere in the state. Forty-two of Mississippi's eighty-two counties are target areas throughout, where the requirement applies to nobody. And veterans are exempt on Easy8, Trusty10 and JustRate regardless of location. Verified against MHC 2026-10-06.Which Mississippi counties have no target areas?
Ten: Itawamba, Lawrence, Leake, Lee, Pontotoc, Smith, Tate, Tishomingo, Union and Yalobusha. In those counties the first-time homebuyer requirement applies countywide on Easy8, Trusty10 and JustRate, so a previous owner's routes are the veteran exemption or Smart7, which has no first-time requirement. Verified against MHC 2026-10-06.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not tax or legal guidance. MHC program terms, income limits and purchase price limits are set by the Mississippi Home Corporation and change; figures here carry the date we verified them against MHC's published pages and its Homebuyer Guide. Smart7 and Easy8 are 0% second mortgages with no monthly payment, deferred until sale, refinance, loss of owner-occupancy or payoff of the first mortgage. Trusty10 is a 15-year second at a 2% rate set by MHC and does carry a monthly payment. Housing Assistance for Teachers is Mississippi Department of Education grant money forgiven on completion of three years' service in a district the Department designates as critical-shortage. Loans are subject to borrower and property qualification.