HELOC Rates in Mississippi: Your 2026 Guide to Home Equity Lines of Credit

Mississippi's affordable housing market means lower home values — but that doesn't mean HELOCs are off the table. Plenty of Magnolia State homeowners have usable equity, and the lender landscape, while smaller than in larger states, includes competitive local options. Here's what Mississippi homeowners need to know.

Mississippi Housing Market Overview

Mississippi has the lowest median [home value](/blog/appraisal-process-explained) of any state in the nation, sitting around $180,000 as of early 2026. While that limits the raw dollar amount available through a HELOC, it also means many Mississippi homeowners own their homes free and clear or carry relatively small mortgages — creating solid equity positions in percentage terms.

Market data by area:

• Jackson metro: Median around $190,000
• Gulf Coast (Biloxi, Gulfport, Pascagoula): $210,000–$250,000 (higher due to coastal demand)
• Oxford: $270,000+ (University of Mississippi premium)
• Hattiesburg: $175,000
• Tupelo: $185,000
• Rural Mississippi: $100,000–$150,000

Home values across the state have appreciated 20–30% since 2020, though at a slower pace than national averages. The Gulf Coast corridor has seen the strongest growth, driven by casino industry employment, military installations (Keesler Air Force Base), and retiree migration.

Mississippi's relatively low cost of living cuts both ways for HELOC borrowers. Lower incomes (median household income around $52,000) can constrain borrowing capacity even when equity is available. But lower property taxes and overall expenses also mean smaller monthly obligations, which helps your [debt-to-income ratio](/blog/dti-ratio-explained).

Current HELOC Rates in Mississippi

HELOC rates in Mississippi generally run 7.25%–9.75% APR in early 2026. Rates tend to be slightly higher than the national average, reflecting the state's smaller and less competitive lending market.

Rate breakdown:

• Best available rates: 6.99%–7.50% APR (limited to top credit profiles at credit unions)
• Good credit (720+): 7.50%–8.25% APR
• Average credit (680–719): 8.25%–9.00% APR
• Fair credit (640–679): 9.00%–9.75% APR

Why rates run slightly higher in Mississippi: Smaller average loan sizes mean less revenue per HELOC for lenders, which can push rates up. A $40,000 HELOC simply generates less interest income than a $150,000 HELOC in a high-value state, so lenders compensate with wider margins. Additionally, the smaller number of competing lenders reduces the competitive pressure that drives rates down in states like Massachusetts or Minnesota.

Minimum credit line amounts: Some lenders set minimum HELOC amounts of $10,000–$25,000. Given Mississippi's lower home values, this can be a constraint for homeowners with limited equity.

Lender Landscape: Who Offers HELOCs in Mississippi

Mississippi has fewer HELOC lender options than larger states, but the options available include solid local institutions and national players.

Best Local and Regional Lenders

Keesler Federal Credit Union The largest credit union in Mississippi, based in Biloxi. Keesler offers HELOCs with competitive rates, low or no closing costs, and membership open to anyone who lives, works, worships, or attends school in the state's Gulf Coast counties (and several other counties). They've been one of the most competitive HELOC lenders in the state.

BancorpSouth (now Cadence Bank) After the merger, Cadence Bank maintains BancorpSouth's strong Mississippi presence with branches across the state. Their HELOC product offers flexible draw periods and competitive rates for existing banking customers.

Trustmark National Bank Headquartered in Jackson, Trustmark is one of Mississippi's largest banks. They offer HELOCs with the convenience of a statewide branch network and local decision-making.

Hope Credit Union A Community Development Financial Institution (CDFI) serving Mississippi and the broader Deep South. Hope focuses on underserved communities and may offer more flexible qualification criteria. Their rates may be slightly higher, but accessibility is the advantage.

Mississippi Federal Credit Union Serving the Jackson metro area, this credit union offers competitive HELOC products with personalized service and community-focused lending.

Best National Lenders Active in Mississippi

Regions Bank Major presence across Mississippi with competitive HELOC rates and the infrastructure of a large regional bank. They offer rate discounts for existing banking customers.

BankPlus Strong Mississippi-based bank (though increasingly regional) with solid HELOC offerings and the ability to handle properties across the state.

Figure Online lender available nationwide, including Mississippi. Their fast approval process and fixed-rate structure can be appealing, though minimum loan amounts may be a factor.

Spring EQ Specialty home equity lender that can accommodate higher CLTV ratios and non-standard situations. Available in Mississippi for borrowers who don't fit traditional lender criteria.

Bank of America / Chase Both have limited but present branch networks in Mississippi and offer their standard HELOC products. Rate discounts for relationship customers apply.

[HELOC Requirements](/blog/heloc-application-process-step-by-step) in Mississippi

Manufactured and mobile homes: Mississippi has one of the highest rates of manufactured housing in the country — roughly 15% of housing units. Getting a HELOC on a manufactured home is possible but limited. The home must be permanently affixed to owned land, titled as real property (not personal property), and meet minimum value requirements. Keesler Federal and some community banks will consider these applications, but expect higher rates and lower CLTV limits.

Flood zone considerations: Significant portions of Mississippi, particularly along the Gulf Coast and the Mississippi River corridor, are in designated flood zones. If your property requires flood insurance, lenders will factor the premium into your DTI calculation, reducing your borrowing capacity. Flood insurance can run $1,000–$3,000+ annually for properties in high-risk zones.

Mississippi-Specific Regulations

Deed of trust state: Mississippi uses deeds of trust rather than mortgages for securing real property loans, including HELOCs. The practical difference for borrowers is minimal — the key implication is that foreclosure can be handled non-judicially (outside of court), which is faster. This means defaulting on a HELOC in Mississippi can lead to quicker foreclosure proceedings than in judicial foreclosure states.

No attorney requirement: Mississippi doesn't require attorney involvement in real estate closings, keeping closing costs lower.

No state mortgage recording tax: Mississippi does not impose a state-level mortgage recording tax. This is a meaningful advantage over states like Michigan and Minnesota. You'll still pay county recording fees ($25–$50 typically), but there's no percentage-based tax on the mortgage amount.

Homestead exemption: Mississippi's homestead exemption protects up to $75,000 of home equity from creditors in bankruptcy. This doesn't directly affect your HELOC but provides important context if you're borrowing against your equity.

Usury laws: Mississippi caps interest rates on certain consumer loans, but the state's usury laws generally don't apply to real estate-secured loans from banks and credit unions. HELOC rates are market-driven, not capped by state law.

Tax Implications

Federal taxes: Standard rules — HELOC interest is deductible only when funds are used for home improvements. The $750,000 combined mortgage debt limit applies (rarely relevant in Mississippi given home values).

Mississippi state taxes: Mississippi has a graduated income tax with rates of:

• 0% on the first $10,000
• 4% on income from $10,001 to $15,000
• 5% on income above $15,000

Mississippi does allow itemized deductions, and mortgage interest (including qualifying HELOC interest) is deductible on the state return, following federal guidelines.

The practical reality: With Mississippi's relatively low state tax rates and modest home values, the tax benefit of [HELOC interest deduction](/blog/heloc-for-rental-property-renovation) is smaller here than in high-tax, high-value states. A homeowner paying $2,000 in deductible HELOC interest saves about $100 in state taxes (at the 5% rate). The federal deduction is more meaningful, especially for borrowers in higher federal tax brackets.

No state [capital gains exclusion](/blog/home-sale-exclusion-guide) issue: Mississippi doesn't have a separate capital gains tax — it's taxed as ordinary income. This is relevant if you're considering whether to sell your home or borrow against it.

Property Tax Context

Mississippi has some of the lowest property taxes in the nation, with an effective rate of approximately 0.63% — well below the national average of 1.10%.

• Jackson: ~0.90%
• Gulfport: ~0.62%
• Biloxi: ~0.55%
• Hattiesburg: ~0.72%
• Oxford: ~0.81%
• Tupelo: ~0.58%

For a $180,000 home at the statewide average rate, annual property taxes are approximately $1,134. This is remarkably affordable compared to most states.

HELOC impact: Low property taxes are a significant advantage for Mississippi HELOC borrowers. Lower tax payments mean lower total housing costs, which improves your DTI ratio and can help you qualify for a larger HELOC. A Mississippi homeowner paying $100/month in property taxes has a much better DTI position than a comparable homeowner in New Jersey paying $700/month.

Homestead exemption: Mississippi offers a homestead exemption that reduces the assessed value of owner-occupied homes, further lowering property taxes. The exemption amount varies by county and applies automatically to primary residences.

Frequently Asked Questions

Is it worth getting a HELOC in Mississippi with lower home values?

Yes, for the right situation. Even a $30,000–$50,000 HELOC can fund significant home improvements in Mississippi where construction and renovation costs are below national averages. A kitchen remodel that costs $60,000 in Boston might cost $30,000 in Jackson. Your HELOC dollars go further here.

What's the minimum home value for a HELOC in Mississippi?

Most lenders require a minimum home value of $75,000–$100,000, and the home must support a minimum credit line (often $10,000–$25,000) after accounting for your existing mortgage. Homes valued below $75,000 will have very limited HELOC options.

Can I get a HELOC on a manufactured home in Mississippi?

Potentially. The home must be permanently affixed to owned land, converted to real property title, and meet lender-specific value and condition requirements. Keesler Federal Credit Union and some community lenders will consider these applications. Expect higher rates and lower CLTV limits.

How does flood insurance affect my HELOC in Mississippi?

If your property is in a FEMA-designated flood zone, you'll need flood insurance, which is required by the HELOC lender. The annual premium ($1,000–$3,000+) is added to your housing expenses for DTI calculation purposes, which reduces the HELOC amount you can qualify for. Check your flood zone status at FEMA's flood map service before applying.

Are there [HELOC alternatives](/blog/heloc-alternatives) for Mississippi homeowners with less equity?

If you don't have enough equity for a traditional HELOC, consider: (1) a personal loan (unsecured, higher rate, but no equity requirement), (2) an FHA Title 1 [home improvement loan](/blog/heloc-for-home-office-build) (up to $25,000 without equity requirements), or (3) USDA rural repair loans/grants (for eligible rural properties and income levels — applicable to much of Mississippi). Hope Credit Union may also have flexible options.

The Bottom Line

Getting a HELOC in Mississippi requires some extra work. Lower home values mean smaller credit lines, the lender pool is more limited, and rates tend to run slightly above national averages. But the flip side is powerful: rock-bottom property taxes improve your qualification prospects, renovation costs are lower (so your HELOC dollars stretch further), and there's no state mortgage recording tax to eat into your funds.

Start with Keesler Federal Credit Union if you're on the Gulf Coast, or Cadence Bank and Trustmark for statewide coverage. Compare at least three lenders, and don't overlook Hope Credit Union if you're in an underserved community. With some patience and comparison shopping, Mississippi homeowners can access competitive home equity products that make real financial sense.

Related Articles

• [Home [Equity Explained](/blog/home-equity-explained): What It Is and How to Build It](/blog/home-equity-explained)
• Property Taxes Explained: How They Work and How to Reduce Them
• Blended Family Home Planning: Merging Households and Managing Home Equity