Published On: April 28, 2023

Housing Assistance For Teachers Program

In partnership with the Mississippi Home Corporation (MHC), Guaranty Bank is proud to serve the home-buying needs of educators in underserved areas of the state. Making homeownership more accessible is part of Guaranty Bank’s commitment to community development. From MHC:

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

The Housing Assistance for Teacher Program (HAT) offers up to $6,000 in grant money to licensed teachers who meet the following criteria:

  • Applicants must agree to render service as a teacher in an eligible 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

This grant is forgiven if the applicant remains employed for three years in one of the 71 school districts in Mississippi where a critical shortage of teachers exists. You can find a full list of eligible districts here. The grant can be used to cover down payment, closing costs, prepaid expenses, and mortgage insurance (if required). The teacher must provide at least 1% of the sales price of the home from their own funds. There are no income limits for this program, unlike many other down payment assistance programs. The home being purchased must be located within the county where the teacher is employed. Additionally, this grant must be used in conjunction with a 25- or 30-year fixed loan, FHA, VA, USDA, Fannie Mae, or Freddie Mac product. The funds available are dispersed on a first-come, first-served basis, and the grant program is funded on a yearly basis.

To find out more about this valuable community development program, how to apply, and if you qualify, please contact Guaranty Bank’s Mortgage department:


NMLS# 405570

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