State Buyer Guide

First-Time Home Buyer Guide
for Mississippi

Down payment assistance, Mississippi housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

Step 1 — Do This First

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$175,000
Avg Home Price
0.64%
Property Tax Rate
~$4,200
Est. Closing Costs
None for primary residences
Transfer Tax

Mississippi Housing Finance Agency Programs

The Mississippi Home Corporation (MHC) is your primary source for below-market mortgage rates and down payment assistance in Mississippi. Programs are available through approved lenders — not directly through the HFA.

MHC Smart6 Program
6% of purchase price in forgivable DPA — forgiven after 10 years

30-year fixed-rate mortgages with forgivable DPA for first-time buyers.

Income limit: $95,000 (varies by county)
Learn more at Mississippi Home Corporation (MHC)
MHC Mortgage Revenue Bond Program
Below-market interest rates on 30-year fixed mortgages

Bond-funded program with below-market rate mortgages.

Income limit: $95,000
Learn more at Mississippi Home Corporation (MHC)
High Value — $240/funded loan

Credible

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Closing Costs in Mississippi

Typical Closing Cost Range
2.4% of purchase price

On a $175,000 home: approximately $4,200

Transfer Tax
None for primary residences

Mississippi does not charge a real estate transfer tax on residential sales, which helps keep closing costs lower for first-time buyers.

Attorney at Closing?
Yes — Mississippi is an attorney-closing state

Mississippi is an attorney-closing state. A licensed Mississippi attorney must conduct the closing. Budget $500–$800.

Key Tips for Buying in Mississippi

  • Mississippi has some of the lowest home prices in the country — excellent affordability for first-time buyers.
  • Flood insurance is important in many Mississippi counties — check FEMA flood map designations carefully.
  • Mississippi's homestead exemption reduces taxable value — apply with your county after purchase.
  • Termites are a serious concern in Mississippi's climate — always get a wood-destroying insect inspection.
Home Inspection

HomeAdvisor

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Legal Help for Mississippi Buyers

As an attorney-closing state, Mississippi requires a licensed real estate attorney to conduct your closing. You'll also want one to review your purchase agreement.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Mississippi?

Mississippi first-time buyers can access programs through the Mississippi Home Corporation (MHC) (https://www.mshomecorp.com/), including the MHC Smart6 Program (6% of purchase price in forgivable DPA — forgiven after 10 years) and the MHC Mortgage Revenue Bond Program (Below-market interest rates on 30-year fixed mortgages). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Mississippi?

Closing costs in Mississippi typically run 2.4% of the purchase price. Transfer tax: None for primary residences. Mississippi does not charge a real estate transfer tax on residential sales, which helps keep closing costs lower for first-time buyers.

Do I need an attorney to buy a home in Mississippi?

Mississippi is an attorney-closing state. A licensed Mississippi attorney must conduct the closing. Budget $500–$800.

What is the average home price in Mississippi?

The median home price in Mississippi is approximately $175,000. Property taxes average 0.64% of assessed value annually.

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