Mortgage Revenue Bond 7 (MRB7) First-Time Homebuyer Assistance Programs

Mortgage Revenue Bond 7 (MRB7): Your Passport to Affordable Homeownership in Mississippi

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Dreaming of a front porch in Tupelo or a condo overlooking the Gulf? Mortgage Revenue Bond 7 (MRB7), the flagship program from Mississippi Home Corporation (MHC), may turn that dream into a deed. Within the next few scrolls you’ll discover how MRB7’s reduced interest rates, flexible credit standards, and optional down-payment help can propel you across the threshold of your first home.

Why Mortgage Revenue Bond 7 (MRB7) Stands Out in 2024

Mississippi’s real estate market is heating up—median sales prices jumped roughly 9 % last year, according to multiple listing data. When prices rise faster than wages, every eighth of a percent on your mortgage rate matters. MRB7 tackles that challenge head-on by:

• Offering below-market fixed interest rates financed through tax-exempt mortgage revenue bonds.
• Allowing you to add MHC’s Smart6 down-payment assistance for up to 6 % of the loan amount.
• Accommodating credit scores as low as 640 with automated underwriting.*
• Serving all 82 Mississippi counties, urban and rural alike.

*Manual underwriting may require a higher score—always check with an MRB7-approved lender.

How Does Mortgage Revenue Bond 7 Work?

Think of Mississippi Mortgage Revenue Bond 7 as a bridge. On one side: aspiring buyers with decent credit but modest savings. On the other: private lenders offering conventional, FHA, VA, or USDA mortgages. MRB7 channels low-cost capital—raised by selling tax-free bonds—to those lenders, enabling them to lock in lower rates for eligible borrowers. The catch? You must meet income, purchase-price, and occupancy rules (we’ll unpack those in a moment).

Who Qualifies for MRB7 in Mississippi?

The qualification matrix looks complex at first glance, yet it boils down to three pillars:

1. Homebuyer status — You’re a first-timer if you haven’t owned a primary residence in the past three years. However, buyers in federally designated “target areas” get a pass on this rule.
2. Income caps — Household income must stay under limits that vary by county and household size. For instance, a family of three purchasing in Hinds County can earn up to roughly $95,000 (2024 chart).*
3. Purchase-price ceiling — Your chosen property must fall below the program’s price maximum, ranging from about $381,000 in non-target areas to higher thresholds in target zones.*

*Exact figures shift annually; confirm with the official MHC MRB7 table.

What Are the Benefits of Using MRB7 vs. a Traditional Mortgage?

Picture two parallel timelines:

• Traditional 30-year, 7.1 % APR on a $250,000 loan yields a monthly principal-and-interest payment of about $1,678.
• MRB 7 loan at 6.1 % APR drops that payment to about $1,514—saving you $164 every month or nearly $59,000 over the life of the loan.

That’s not pocket change; it’s a college fund, a rental property down payment, or 732 plates of ribs at The Pig & Pint.

Additional Perks You Might Not Expect

• Layerable assistance — Pair MRB7 with local grants such as Jackson’s HOPE or Biloxi’s H.O.M.E. funds.
• No recapture tax — Mississippi eliminated the federal recapture penalty on MRB7 in 2022, easing resale worries.
• Portability within Mississippi — If you refinance within the state using another MHC product, you may retain partial benefits.*

*Subject to lender approval and prevailing guidelines.

Case Study: A Teacher’s Path from Renting to Roots

Last spring, second-grade teacher Lacey Harris was paying $1,350 to rent a two-bedroom in Ridgeland. After attending a 90-minute homebuyer webinar, she applied for the MRB7 first-time homebuyer program. With a 3 % down payment saved from tutoring gigs and MRB7’s 6 % Smart6 assistance, Lacey closed on a $235,000 townhouse. Her new mortgage? $1,278—less than her old rent. She jokes that her golden retriever upgraded from a patio to a backyard “big enough for Olympic zoomies.”

Can MRB7 Be Combined with Other Down-Payment Assistance?

Yes, but layering requires choreography. MHC allows MRB7 to stack with:

1. Smart6 second mortgage—up to 6 % of the first loan amount, forgivable after 10 years.
2. Housing Assistance for Teachers Grant—$6,000 if you serve a critical-needs district.
3. Federal Home Loan Bank (FHLB) grants—often $7,500 for first-time buyers under 80 % AMI.

Each program has slightly different underwriting overlays, so ask your lender for a “blended” approval before house hunting.

Step-by-Step Guide to Securing an MRB7 Loan

1. Pre-qualify with an MRB7-approved lender. Gather two years of W-2s, 30 days of pay stubs, and recent bank statements.
2. Complete homebuyer education—a HUD-certified eight-hour class (many offer Saturday sessions and virtual formats).
3. Find a property within purchase-price limits. A seasoned buyer’s agent can filter MLS listings to save time.
4. Lock your rate. MRB7 rates update daily by 10 a.m. and can be reserved for 70 days, plenty for inspection and appraisal.
5. Close. Bring a valid ID, proof of insurance, and any remaining funds. Celebrate with sweet tea.

Documentation Checklist

• Photo ID for all borrowers
• Social Security cards (or valid alternative)
• Two most recent tax returns
• 60-day bank history
• Signed purchase agreement

Mississippi Homeownership by the Numbers

A July 2023 study from the University of Southern Mississippi revealed that households earning under $60,000 comprised 58 % of first-time buyers. Yet only one in four secured a below-market rate. MRB7 directly addresses that gap, with MHC reporting that 71 % of their MRB7 borrowers in 2023 earned under $65,000. Translation: if you’re middle-income, the program is practically designed for you.

FAQ

Ready to Unlock Your Mississippi Home?

The path to a front door of your own doesn’t have to feel like threading a needle. Mortgage Revenue Bond 7 (MRB7) trims interest rates, cushions your down payment, and levels the playing field for everyday Mississippians. Connect with an MRB7-certified lender or schedule a free strategy session with our housing advisors. Let’s swap your rent check for equity and turn “someday” into move-in day.

Check Current MRB7 Rates

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