Mississippi home loans: low prices, MHC second mortgages and the homestead credit

#Low prices, and incomes to match

Mississippi’s median home value of $186,500 ranks 2nd-lowest among the states and DC, against $360,600 nationally. Its median household income of $59,127 ranks lowest, so cheap homes don’t automatically mean easy ones. Still, the median home costs 3.2 times the median income — the 3rd-lowest ratio in the country, against 4.4 for the US.

Homes are also newer than the US median: the typical Mississippi home was built in 1987 (US: 1981), which ranks 15th of 51 for newest housing.

#What the median home costs each month

The median renter pays $990 a month — $415 less than the owner’s payment above, before maintenance. The rent vs buy calculator shows how long you would need to stay for buying to pay off.

#Smart7, Easy8 or Trusty10?

Mississippi Home Corporation (MHC), the state’s housing finance agency, sells its 30-year fixed-rate mortgages through participating lenders, each with an optional second mortgage for the down payment, closing costs or prepaid items. You generally need to be a first-time buyer (no ownership in the past 3 years) unless you buy in a targeted area or are a veteran, stay within the county income limit, live in the home and complete homebuyer education.

#MHC’s HAT grant for teachers

MHC’s Housing Assistance for Teachers (HAT) program offers a grant of up to $6,000 to Mississippi-certified public school teachers buying in select areas, and MHC announced funding for the 2026–2027 cycle in August 2026. Funding is limited and only some areas qualify, so confirm with MHC before you shop.

#No transfer tax at closing

Mississippi is one of 16 states with no statewide real estate transfer tax, so the deed is recorded for a recording fee rather than a percentage of the price. Your closing costs are mostly lender charges, title insurance, prepaid interest and the escrow deposit — at the CFPB’s typical range, $3,730–$9,325 on the median home. The closing cost calculator itemizes them.

#Claim the homestead exemption by April 1

At 0.65% of value, Mississippi’s effective property tax rate is below the national 0.89% and the 18th-lowest in the country. The homestead exemption trims it further:

• Regular homestead: a tax credit of up to $300 a year, based on the property’s value — up to 25% of the estimated tax on the median home.
• Age 65 or older, or totally disabled: no tax on the first $7,500 of assessed value, with protection that can grow as the value rises.

You must own the home and live in it as your primary residence on January 1, with the deed already recorded with the chancery clerk, and apply at the county tax assessor’s office between January 1 and April 1. Close on a home in, say, March of one year and you can usually apply the following January.

#What the median income supports

With housing at Freddie Mac’s 30% guideline, the median income of $59,127 supports $1,478 a month — a price of about $196,000 with 10% down at today’s average rate, $9,500 above the median home value. Run your own figures in the affordability calculator or the payment calculator. Outside the larger cities, a USDA loan with no down payment may also be worth comparing.