Smart7

What is Smart7?

Smart7 is a deferred second loan for homebuyers in Statewide, Mississippi.

• MHC non-bond TBA: 30-year fixed first + $7,000 deferred soft-second @ 0% (due-on-sale/refi/non-owner-occ/payoff). No FTHB requirement. No federal recapture tax. Statewide.
• Smart7 is Mississippi Home Corporation's non-bond TBA homebuyer program providing a 30-year fixed-rate first mortgage (FHA, VA, USDA-RD, Fannie Mae HFA Preferred, or Freddie Mac HFA Advantage) plus $7,000 in down payment / closing-cost assistance. The DPA is structured as a 0% interest second mortgage with NO monthly payments, due-on-sale, refinance, non-owner-occupancy, or first-mortgage payoff (deferred soft second). Smart7 has NO first-time-homebuyer requirement (open to repeat buyers). No liquid asset limit. As a non-bond TBA program, there is NO IRS Section 143 federal recapture tax. Smart7 replaced/supplemented MHC's Smart6 product in late 2025.
• Funding comes from State and TBA.

Do you have to pay it back?

Smart7 is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full $7,000 principal due upon sale, refinance, transfer, non-owner-occupancy, or payoff of the first mortgage. No monthly payments. Not forgivable.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Smart7 is open to buyers who will live in the home as their primary residence.

What are the income limits?

Smart7 limits household income to $132,770.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Smart7 caps the purchase price at $398,310.

• Eligible property types include New or existing single-family home, townhouse, condominium, PUD and manufactured homes per servicer overlays.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Smart7 names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Smart7 serves buyers purchasing in Statewide, Mississippi.

How do you apply?

Applications for Smart7 go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through MHC-approved homebuyer education provider (Framework, eHome America, or HUD-approved counseling agency)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through MHC's Lender Online portal at time of rate lock by approved participating lender., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.