Could you use $15,000 in down payment assistance?
The Tennessee Housing Development Agency, THDA, has announced a new program that includes $15,000 in down payment assistance for first time homeowners.
They call it their Hardest Hit Fund Down Payment Program. It is designed to promote home ownership in areas that were hardest hit by the mortgage crisis and and slower than average to recover.
These incentives are available in 30 zip codes across the state of Tennessee with seven of them here in Nashville.
The zip codes include:
37218 - Whites Creek Area
37207 - Parts of East Nashville
37208 - North Nashville
37115 - Madison
37217 - Priest Lake Area
37086 - LaVergne
Here’s how it works:
The buyer must qualify for the THDA Great Choice Program and buy an existing home in one of the targeted zip codes.
The THDA will provide the $15,000 down payment as a second mortgage on the home with no interest or payments due as long as you keep the home and loan.
If the buyer sells the home or refinances within 5 years, they will have to repay the $15,000 to the THDA. THDA will forgive 20% of the loan annually in the sixth - tenth years. After 10 years the second loan is completely forgiven.
Mayor Barry said, “This program is going to bring stability to property values and make neighborhoods safer by attracting more residents who will be invested there. This program is just another great tool in our toolbox as we work to create and preserve more affordable housing in Nashville and Davidson County.”
I believe that Nashville is greatest when there is affordable housing for all stakeholders. This program will bridge the gap between renting and owning for many Nashvillians.
If you or someone you know is interested in $15,000 of down payment assistance, just hit reply and I will help them through this process.
The Daily Deal in Nashville is a renovated home on 1+ acres that could qualify for this THDA program.