Mississippi's Teacher Grant Is the Only Forgivable Money in the State
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Every other dollar of Mississippi assistance is a mortgage. This one is a grant, and the difference is about $6,000 you do not repay.
What is Housing Assistance for Teachers?
HAT provides up to and not exceeding $6,000 toward down payment and closing costs for Mississippi certified public school teachers buying in designated parts of the state. The money comes from the Mississippi Department of Education, and it is structured as a grant rather than a lien.
Source: MHC's Housing Assistance for Teachers page. MHC traces the program to what the Mississippi Legislature passed as the Mississippi Critical Teacher Shortage Act of 1998, written to make it easier for teachers to buy homes in the districts struggling hardest to staff classrooms.
How does the forgiveness work?
You sign a Loan Agreement your participating lender holds. It commits you to employment of no less than three years in a school district where the Department has identified a critical shortage of teachers, beginning with the start of the school year. Complete the three years and the assistance is forgiven.
That is the whole mechanism, and it is why HAT sits in a category of its own here. Smart7 and Easy8 defer repayment. Trusty10 collects it monthly. HAT, on performance of the agreement, writes it off.
Is there an income limit on the teacher grant?
Not on HAT by itself. MHC states it carries no income limits unless it is used with JustRate, Smart7, Easy8 or Trusty10, in which case that product's limit governs.
The reason is structural, and it is worth understanding. MHC's four mortgage products are funded with tax-exempt Mortgage Revenue Bonds, and federal bond rules impose the income and purchase price caps. HAT is Department of Education money, so no bond rule reaches it. Pair the two and the bond rule comes back.
| Combination | Income limit that applies |
|---|---|
| HAT alone | None |
| HAT + Smart7 | $137,870 statewide |
| HAT + Easy8 | Your county MRB limit |
| HAT + Trusty10 | Your county MRB limit |
| HAT + JustRate | Your county MRB limit |
So a teacher earning above their county limit still has a path: HAT on its own, or HAT with Smart7. That is a real planning decision and it turns on one sentence MHC publishes once.
★ What is the 1% you have to bring?
HAT requires a minimum down payment of 1% of the sales price from the borrower's own funds, plus one month's reserves. The reserves may be a gift from a relative. The 1% may not.
This is the part that trips teachers up late in the process, and it is worth saying bluntly: a relative can help with the reserves, but the 1% has to be yours, sourced and seasoned. Plan for it from the beginning rather than discovering it at underwriting.
Once the 1% is in, the grant can go toward the rest of the down payment, your closing costs, prepaid expenses, and mortgage insurance where applicable.
Where can I use it?
The property must sit in the county where you are employed, and your district must be one the Mississippi Department of Education designates critical-shortage. Those two conditions travel together, so this is not a statewide program in practice even though it is statewide in principle.
Sixty-eight of the eighty-two counties have at least one eligible district. The full county and district list.
What loan can it go with?
A 25- or 30-year fixed loan, financed through FHA, VA, RD Guaranteed, Fannie Mae or Freddie Mac. Credit score requirements depend on loan-to-value, and mortgage insurance may be required depending on loan-to-value.
Mike's read: for a teacher in an eligible district, HAT paired with Smart7 is the strongest combination Mississippi offers. Forgivable money, no first-time requirement, a $137,870 ceiling, and no monthly payment on either piece.
What should a teacher do first?
Confirm two things before anything else: that your district is on the Department's critical-shortage list, and that you can document 1% of your expected purchase price from your own funds. Those are the two conditions that decide whether HAT is available to you.
Call Mike at (480) 296-6513 or email mcerto@cfmtg.com and we will check the district and map the combination against your income.
Frequently asked questions
Do Mississippi teachers get down payment assistance?
Yes. Housing Assistance for Teachers provides up to $6,000 of Mississippi Department of Education money toward down payment and closing costs for certified public school teachers, and it is forgiven once the licensed teacher completes a minimum of three years in a district the Department designates critical-shortage. It is the only forgivable assistance in the state. Verified against MHC 2026-10-06.Does the Mississippi teacher housing grant have an income limit?
Not on its own. MHC states HAT carries no income limits unless it is used alongside JustRate, Smart7, Easy8 or Trusty10, in which case that product's income limit applies. HAT is Department of Education money rather than Mortgage Revenue Bond money, which is why no bond income cap reaches it. Verified against MHC 2026-10-06.How much do I have to put down to use the Mississippi teacher grant?
A minimum of 1% of the sales price from your own funds, plus one month's reserves. MHC is explicit that the reserves may be gifted by a relative but the 1% contribution may not, so that 1% must be your own sourced funds. The grant can then cover the balance of the down payment, closing costs, prepaid expenses and mortgage insurance. Verified against MHC 2026-10-06.Which Mississippi counties qualify for the teacher housing grant?
Sixty-eight of Mississippi's eighty-two counties contain at least one of the 102 school districts the Department of Education designates as critical-shortage. The property must be located in the county where the teacher is employed, and that specific district must carry the designation, so eligibility is decided district by district rather than county by county. Verified against MHC 2026-10-06.Do I have to stay in the job for the teacher grant to be forgiven?
Yes. The Loan Agreement commits you to employment of no less than three years in a critical-shortage school district, starting with the beginning of the school year. Completing those three years is what forgives the assistance. Your participating lender holds the agreement. Verified against MHC 2026-10-06.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not tax or legal guidance. MHC program terms, income limits and purchase price limits are set by the Mississippi Home Corporation and change; figures here carry the date we verified them against MHC's published pages and its Homebuyer Guide. Smart7 and Easy8 are 0% second mortgages with no monthly payment, deferred until sale, refinance, loss of owner-occupancy or payoff of the first mortgage. Trusty10 is a 15-year second at a 2% rate set by MHC and does carry a monthly payment. Housing Assistance for Teachers is Mississippi Department of Education grant money forgiven on completion of three years' service in a district the Department designates as critical-shortage. Loans are subject to borrower and property qualification.