Veterans Do Not Have to Be First-Time Buyers in Mississippi
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
If you have served and you have owned a home before, you may have been told bond-rate financing is closed to you. For Mississippi's MHC programs that is not right.
What exactly does MHC say?
On the Easy8, Trusty10 and JustRate program pages, under how to qualify, MHC lists the first-time requirement and then immediately limits it:
"Certain areas of the state, called 'Target Areas' and veterans are exempt from the 'first-time homebuyer' rule"
That is two exemptions in one sentence, and the second one gets lost because it sits at the end of a line about geography.
What is the rule being waived?
MHC defines a first-time homebuyer as someone who has not owned a principal interest in a residence in the past three years. Without an exemption, a prior homeowner is out on Easy8, Trusty10 and JustRate.
With the veteran exemption, the ownership history stops mattering. What remains is the income limit for your county and household size, the purchase price limit, credit qualification with a participating lender, owner-occupancy, and homebuyer education. Those all still apply.
| Requirement | Waived for veterans? |
|---|---|
| First-time buyer / three-year lookback | Yes |
| County income limit | No |
| Purchase price limit | No |
| Owner-occupancy | No |
| Homebuyer education | No |
| Credit qualification | No |
Why does this exemption exist?
It is federal. Mortgage Revenue Bond programs operate under 26 U.S.C. §143, which sets the first-time buyer requirement and also sets out where it does not apply. Target areas are one carve-out. Qualified veterans are another.
So this is not MHC being generous. It is MHC applying a rule that governs every state housing finance agency running bond programs, and it means the exemption is durable rather than promotional.
Is this the same as using a VA loan?
No, and the two are easy to confuse. A VA loan is a loan type, insured by the Department of Veterans Affairs. This exemption is about eligibility for MHC's bond programs, and it applies whichever loan type you use.
They can work together. MHC lists VA among the loan types its products pair with, so a veteran can run a VA first mortgage under Easy8 and take the $8,000 of 0% deferred assistance, having skipped the first-time requirement entirely.
What about Smart7?
Smart7 has no first-time homebuyer requirement for anybody, veteran or not, so there is nothing to be exempted from. For a veteran it becomes a straight comparison on the numbers: $7,000 at 0% deferred with a $137,870 statewide ceiling, against $8,000 at 0% deferred with your county's ceiling.
If your county limit is comfortable, Easy8's extra $1,000 costs you nothing relative to Smart7. If it is tight, Smart7's higher ceiling is worth more than $1,000. The full comparison.
What do I need to bring?
MHC's parallel programs generally ask for proof of service, and the specific documentation is set by the participating lender working your file under MHC's guidelines. Bring your DD-214 and let us confirm what else MHC wants for your situation before you count on the exemption.
What matters is that you raise it. An exemption nobody asks about does not get applied. Call Mike at (480) 296-6513.
Does it cover surviving spouses?
MHC publishes the exemption as applying to veterans and does not spell out spousal treatment on its program pages, so we will not state a position we cannot source. Some state agencies extend it to spouses of veterans and some do not.
If this is your situation, we will get it confirmed in writing from MHC before it goes in your file. Cite or omit applies to your loan file as much as it does to this page.
Frequently asked questions
Do veterans have to be first-time homebuyers for Mississippi MHC programs?
No. MHC states on its Easy8, Trusty10 and JustRate program pages that target areas and veterans are exempt from the first-time homebuyer rule. A veteran who has owned a home before can still use those programs. The income limit, purchase price limit, owner-occupancy and homebuyer education requirements all continue to apply. Verified against MHC 2026-10-06.Is the Mississippi veteran DPA exemption the same as a VA loan?
No. A VA loan is a loan type insured by the Department of Veterans Affairs. The exemption is about eligibility for MHC's Mortgage Revenue Bond programs, and it applies regardless of loan type. The two combine: a veteran can use a VA first mortgage under Easy8 and take the $8,000 of 0% deferred assistance without meeting the first-time requirement. Verified against MHC 2026-10-06.What does the veteran exemption actually waive?
Only the ownership-history test. MHC otherwise defines a first-time homebuyer as someone with no principal interest in a residence for three years, and the exemption removes that test. Income limits for your county and household size, the purchase price limit, owner-occupancy, credit qualification and homebuyer education are unaffected. 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.