Through a state-licensed lender, a reverse mortgage lets Mississippi homeowners age 62 and up borrow against their home value without facing monthly mortgage bills. From October 2025 through August 2026, HUD insured 68 such loans in Mississippi; fiscal year 2025 brought 80. The median home value among those 68 borrowers was $230,000, while the median initial principal limit reached $96,192 at a note rate of 5.875%. Your initial principal limit is the full amount you can borrow before you pay off what you already owe. The number of HUD-approved counseling agencies based in Mississippi is currently 0. That means you'll do your required counseling over the phone before you apply. For the basics, take a look at how reverse mortgages work.
Mississippi's $7,500 homestead exemption for homeowners 65 and up
Federal reverse mortgage rules require you to stay current on your property taxes and homeowners insurance. You must also keep the home as your main residence and take proper care of it. If you fall behind on property taxes, your loan could go into default. State tax relief matters for that reason.
A state rule known as a homestead exemption keeps part of your home's value safe from property taxes. For homeowners who are totally disabled or at least 65 by January 1 of the application year, Mississippi’s homestead exemption offers an age and disability tier. Your home's first $7,500 of assessed value isn't taxed under this tier. The dollar amount your county uses to calculate your yearly tax bill is called the assessed value. You can qualify no matter your income. After your 65th birthday, you're required to reapply in the following filing period so the county switches you to the larger tax break. Each year, from January 1 to April 1, you file at your county Tax Assessor's office in person.
Who licenses and supervises Mississippi lenders?
Mississippi's Department of Banking and Consumer Finance (DBCF) handles licensing and supervision for every mortgage broker, lender and servicer in the state. Your servicer is a company. It sends statements after closing and manages your loan account. Inside the department, the Nonbank Division reviews applications, grants licenses and checks that reverse mortgage lenders in Mississippi follow state law. Today, 18 active lenders provide these loans statewide.
In Mississippi, all mortgage licensing goes through the Nationwide Multistate Licensing System. Before you sign any forms, look up your loan officer through the Consumer Access license search. You'll confirm they have an active license with that quick look‑up. You're also free to reach the Nonbank Division if you ever need to file a complaint about a mortgage company.
Mississippi S.A.F.E. Mortgage Act: licensing requirements
Mortgage brokers and lenders are covered by the Mississippi S.A.F.E. Mortgage Act, which provides state oversight. This state licensing statute requires that any broker or lender license come from the Department of Banking and Consumer Finance. Loan caps and borrowing choices are defined by federal rules. For instance, the federal HECM limit in 2026 is $1,249,125. Between October 2025 and August 2026, that cap was reached by only 2 Mississippi loans. In that period, 2 borrowers bought a home with a HECM and 4 refinanced an existing one.
