HAT Lender FAQs                            

Can a borrower who receives a HAT Grant also benefit from seller contributions and/or a gift from a family member? 

Yes.

 

Can a HAT Grant be combined with a Mortgage Credit Certificate (MCC)? 

Yes.  The only MCC fees the Lender may charge are (1) the actual cost charged by the MCC provider, and (2) a $75 MCC application fee.

 

Does the income from a non-purchasing spouse or non-occupying co-borrower count towards HAT’s Maximum Income Limit?

No. Only income received by borrowers who sign the Note and occupy the property will count towards HAT’s Maximum Income Limits.  ***Non-occupying co-borrowers are not permitted under HAT's Silver Advantage Option.***

Who is required to take a homebuyer education course?  

All borrowers (including non-first-time buyers) that sign the Note and occupy the property are required to take a course.  Each homebuyer education certificate must reflect the name of only one borrower.  (i.e. Each borrower must test individually.)

 

Does a borrower have to be in contract before I can reserve Grant funds?  

Yes.

 

When do I lock in the interest rate on the mortgage loan? 

This is done after the HAT Grant Reservation is confirmed.

 

What email address should I use for HAT?

Send all grant reservations, documentation and funding requests to HatGrant@HatGrant.com.  Using this address ensures that a HAT Team Member will respond quickly to your request. 

 

Is the borrower required to sign the HAT Gift Letter and Mortgagor’s Acknowledgment before I reserve Grant funds? 

No.  However, those documents should be signed and initialed (“wet” or electronically), then submitted to HAT within a week after reserving the grant funds. 

 

Do I need to update and resubmit the reservation form if something changes? 

Yes.  You will also need to generate a new HAT Gift Letter and Mortgagor’s Acknowledgment for your borrower to sign and initial (prior to closing) if there are changes to the grant amount, loan amount and/or interest rate.

 

How should the Grant be reflected on the Closing Disclosure?  

The description in Section L of the CD should read “Housing Finance Corp Grant”.

 

What happens if the CD shows that the borrower will get cash back at closing in excess of their earnest money, option fee, POCs, etc.? 

While HAT would prefer that the loan amount be lowered, it is acceptable for the excess cash back to be shown as a principal reduction on the CD.