Housing Assistance for Teachers

Who is eligible:

• Applicants who agree to render service as a teacher in the district for three years starting with the beginning of the school year
• Applicants meeting the credit eligibility requirements of FHA, VA, RD Guaranteed, Fannie Mae or Freddie Mac

Program Requirements:

• 25 or 30-year fixed loan rate
• FHA, VA, RD Guaranteed, Fannie Mae or Freddie Mac
• Credit score dependent upon LTV
• Mortgage Insurance required (depending on LTV)

Features of the HAT Program:

• Grant assistance is forgiven if the approved licensed teacher satisfies a required executed Loan Agreement. The Loan Agreement requires the applicant to be employed for a period of no less than three (3) years in a school district where a critical shortage of teachers exist. Your participating lender has access to this document.
• MS Dept. of Education assistance will cover the amount of borrower funds needed to close on a home up to and not to exceed $6,000.
• MS Dept. of Education assistance can be used to cover required down payment (less borrower’s 1% required contribution), borrower paid closing costs, prepaid expenses, and Mortgage Insurance, if applicable, depending upon the amount of additional down payment paid over the required amount (contact your lender).
• Homebuyer(s) must provide a minimum down payment from one’s own funds of 1% of the sales price and one month’s reserves.  Reserves requirement may be gifted from a relative, but not the 1% down payment contribution.
• No income limits unless using with another MHC loan product (see other program guidelines).
• Residential property must be located within the county where the teacher is employed and is designated by the MS Department of Education as a critical shortage school district.