HAT Program
Housing Assistance for Teachers

In rural Mississippi there exists a critical shortage of qualified teachers. In order to move Mississippi forward, our children must have the benefits of a quality education.

In response to this need, the Mississippi Legislature passed the “Mississippi Critical Teacher Shortage Act of 1998”, which offers attractive incentives for qualified teachers.

The Housing Assistance for Teachers Program (HAT) was designed to assist with funding to help teachers buy homes. Making homeownership easier will certainly encourage teachers to move to these shortage areas.

Features of the HAT Program

• An assistance promissory note is converted to an interest-free grant if the approved applicant is participating as a licensed teacher, and agreeing to employment of service for a period of no less than three years in a school district where a critical shortage of teachers exists.
• State assistance will cover the actual amount of funds needed to close on a home. This amount is not to exceed $6,000.
• State assistance can be used for down payment, closing costs, prepaid expenses, and Private Mortgage Insurance (PMI).
• Applicants must provide a minimum down payment from one's own funds of 1% of the sales price and one month reserves.
• Reserves may be a gift from a relative.
• No income limits.
• Units must be located in targeted counties of the state as designated by the Mississippi State Board of Education.

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.

Program Requirements:

• 25 or 30-year fixed loan rate (depending on debt-to-income ratios).
• Fannie Mae conventional products.
• Maximum Loan-to-Value (LTV) - 97%.
• Credit score(dependin on LTV).
• 12%-30% Mortgage Insurance required (depending on LTV).

Eligible residential counties for the HAT program

For more information contact Shelly Pollock