Smart6 Mortgage Credit Program First-Time Homebuyer Assistance Programs

Smart6 Mortgage Credit Program: Mississippi’s Launchpad for First-Time Homebuyers

Mississippi renters who crave a set of house keys often hit the same wall—cash for the down payment and an affordable interest rate. The Smart6 Mortgage Credit Program breaks down both barriers at once: it pairs a below-market 30-year mortgage with rock-solid down payment assistance, exclusively for first-time buyers in the Magnolia State. If you have been watching rates inch up and wondering whether your dream is on hold, keep reading. This guide unpacks everything from eligibility to closing day, weaving in local data, a real-life success story, and answers to the questions Mississippians type into Google the most.

Why the Smart6 Mortgage Credit Program Matters in 2024

The median sales price in Mississippi climbed roughly 8 percent between 2022 and 2023, according to Mississippi REALTORS®. That jump can translate into thousands more in upfront costs—often the deciding factor for young professionals, teachers, and first-responders. Meanwhile, national mortgage rates doubled in less than two years, putting extra pressure on monthly budgets. The Smart6 initiative, offered by Mississippi Home Corporation (MHC), counters both trends by:

• Offering a 30-year, fixed-rate mortgage typically 0.50–0.75% below conventional market rates.
• Providing up to $7,000 in repayable down payment and closing-cost assistance.
• Applying the assistance as a second mortgage with 0% interest—payment due only when you sell, refinance, or finish the first loan.

In other words, Smart6 acts like a financial slingshot, launching buyers past the deposit hurdle and into a payment they can sustain.

How Does the Smart6 Mortgage Credit Program Work?

Think of Smart6 as a two-part package. First, MHC funds or backs a primary mortgage through one of its approved lenders. Second, it layers on a small 0% second loan that covers part or all of your required down payment and closing costs. Because the second loan is silent—meaning no monthly payment—it doesn’t bloat your debt-to-income ratio.

Behind the scenes, Smart6 is powered by tax-exempt mortgage revenue bonds, allowing lenders to offer sub-market rates. The program conforms to Fannie Mae’s HFA Preferred product, so conventional underwriting and PMI rules apply. Borrowers can also choose an FHA, VA, or USDA option if it delivers better pricing. Either way, Smart6 turns the government’s low-cost capital into your personal affordability booster.

The Two Pillars: Low-Rate Mortgage and Down Payment Assistance

• Primary Loan: 30 years, fixed, up to $726,200 (2024 conforming limit).
• Second Loan: 0% interest, $7,000 max, no monthly payment, due on disposition of the home.

Because the repayment only occurs when you have likely built equity, you essentially borrow time to grow your income and net worth.

Who Qualifies for the Smart6 Mortgage Credit Program in Mississippi?

Eligibility is broader than many assume. You must be a first-time homebuyer—defined by MHC as someone who hasn’t owned a principal residence in the past three years—unless you’re purchasing in a federally designated targeted county such as Jefferson or Sharkey. Here’s a quick checklist:

• Credit Score: 640 minimum (borrowers with manufactured homes need 660).
• Income: Up to $110,000, varying by family size and county.
• Purchase Price: Capped around $381,000 for existing homes and $424,000 for new construction (2024 limits).
• Complete an HUD-approved homebuyer education course before closing.
• Occupy the property as your primary residence within 60 days of closing.

These guidelines open the door to a wide swath of Mississippians, from healthcare workers in Tupelo to tech employees commuting from Madison County.

Smart6 vs. FHA, USDA, and Other Mississippi Homebuyer Loans

Programs abound—FHA loans require just 3.5% down, while USDA loans guarantee 100% financing in rural zones. So where does Smart6 shine?

The takeaway? If you qualify for Smart6, you gain both a competitive rate and funds for your down payment—an unbeatable tandem.

Step-by-Step Roadmap to Secure Your Smart6 Loan

1. Pull your credit and aim for 640+. Paying down revolving balances by 10% can raise scores within 30 days.
2. Contact an approved lender. MHC lists more than 40 across the state—from Biloxi banks to Oxford credit unions.
3. Get pre-approved. The lender will calculate your debt-to-income ratio and issue a pre-approval letter.
4. Complete homebuyer education. Online courses cost about $99 and take six hours.
5. Shop for homes within the purchase-price cap and make an offer.
6. Lock your Smart6 rate. Lenders typically lock for 60 days, enough time for inspections and appraisal.
7. Close. Sign both the first and second mortgage notes, receive your keys, and move in within 60 days.

Micro-Story: From Renting to Roots in Ridgeland

Mia, a 28-year-old middle-school teacher, had rented the same two-bedroom apartment in Ridgeland for five years. Every August the rent jumped—$30 here, $40 there—until one morning her monthly payment was higher than a typical mortgage for a similar property. She saved dutifully, but her nest egg capped at $4,000, well shy of the 5% down payment she thought she needed. Enter Smart6.

After a colleague forwarded the program link, Mia connected with an MHC-approved lender. The adviser structured a conventional Smart6 loan at 5.75% with a $7,000 second loan that covered her entire down payment and most closing costs. Mia closed on a three-bedroom townhouse in March. Her monthly mortgage, taxes, insurance, and private MI add up to <$1,150—$127 less than her final rent check. The kicker? In four years, she can petition to cancel MI and shave another $80 from the payment.

Mia’s story illustrates how Smart6 turns renters into owners sooner—sometimes years sooner—than they expected.

How Much Down Payment Assistance Can I Get Through Smart6?

The program caps aid at $7,000 or 4.5% of the loan amount, whichever is lower. On a $150,000 home, 4.5% equals $6,750, so you’d receive that figure. The funds can cover:

• Your required down payment—3% on a conventional loan, 3.5% on FHA.
• Appraisal, home inspection, and lender origination fees.
• Prepaid taxes and homeowners insurance.

If the seller agrees to pay part of your costs, the Smart6 second loan can be reduced to match the exact gap, preventing any wasted assistance.

Is Smart6 Better Than an FHA Loan?

“Better” depends on personal finances. Smart6 can be paired with an FHA first mortgage, but many borrowers find a conventional Smart6 combo superior because:

• Private mortgage insurance can be cancelled once you reach 20% equity; FHA insurance often lasts the life of the loan.
• The sub-market rate from MHC can be lower than standalone FHA quotes.
• Closing cost grants mean you preserve your emergency fund.

However, FHA allows a 580 credit score with 3.5% down—below Smart6’s 640 minimum—so very new credit users might lean FHA until scores rise.

Frequently Asked Questions

What is the minimum down payment with the Smart6 credit program?
Because the second loan can cover up to 4.5% of your first mortgage, many buyers bring zero cash to closing beyond earnest money deposits, which are refunded or credited.

Do I repay the $7,000 assistance?
Yes. The 0% second lien is due in full when you sell, refinance, transfer title, or pay off the primary mortgage. There are no monthly payments in the interim.

Can I use Smart6 for a duplex?
Yes, if you occupy one unit as your primary residence. Income and purchase-price caps increase slightly for two- to four-unit properties.

Is there a prepayment penalty on the primary Smart6 mortgage?
No. You may pay extra principal or refinance without penalty once you meet seasoning guidelines set by your servicer.

How long does the application process take?
Allow 45–60 days from pre-approval to closing. Completing your education course early and submitting documents quickly can shave a week or more.

Your Next Move: Put Smart6 in Motion

Mississippi’s Smart6 Mortgage Credit Program has already delivered affordable financing to thousands of first-time buyers—and the next success story could be yours. Gather last year’s W-2s, check your credit, and reach out to an MHC-approved lender this week. Every month you wait is one more rent payment that fails to build equity or security.

Ready to trade rent for roots? Visit the official Smart6 page, then contact our team for a no-pressure strategy session. We’ll walk you through customized numbers and connect you to a lender who specializes in the Smart6 advantage.