STARTING March 1st 2017 time buyers can receive $15,000 down payment from THDA to buy any home(except new construction ) in the following Knox zip codes
37721,37871,37924,,37914,37917,37912,37921 So just search some homes on our site ,pick some out and we can go find your first home
Just click here to read and see a video on the program then just call me at 865-803-3558
Mike SEE MORE BELOW
People in seven ZIP codes around Knox County can get $15,000 toward the downpayment on a first-time home purchase.
Knox County Mayor Tim Burchett, Knoxville Mayor Madeline Rogero, and Tennessee Housing Development Agency Executive Director Ralph Perrey announced Thursday afternoon that $60 million in federal money will be available for the program, spread across 55 ZIP codes in the state where neighborhoods have struggled to recover from the 2008 housing crash.
“The way it will work is this: THDA will provide $15,000 in downpayment assistance for THDA-eligible borrowers who buy a home in one of these targeted ZIP codes,” Perrey said. “It’s not a gift, it’s not a grant. We are going to structure it as a second mortgage; a ‘soft second,’ if you will. It will be forgivable over a 10-year period, during which time the borrower accrues no interest and makes no payments. Beginning in year six, 20 percent of the outstanding downpayment note will be forgiven. So at the end of 10 years, if that buyer is still in that home, still in that mortgage, they’ll have no obligation for repayment of the down payment assistance that we provide.”
Seven of those 55 eligible ZIP codes are in central, north and east Knox County; one, 37871, extends into Sevier and Jefferson counties. Rogero mentioned the Lonsdale, Old North Knoxville, Edgewood, Park Ridge, Burlington, Norwood and Pleasant Ridge neighborhoods in particular as targets for the program.
“My hope is that THDA’s downpayment assistance program will help more people call one of these great neighborhoods home,” she said.
Rogero said when she moved to Knox County in 1980 with her husband and two children, they were able to buy their first home with an affordable loan from THDA.
In Knox County, one- or two-person households with incomes up to $61,000 may be eligible, and incomes up to $71,000 for larger households, Perrey said.
“That’s going to surprise some people who may have thought they made too much money to work with our program,” he said. Applicants have to have a minimum credit score of 640 and a maximum debt-to-income ratio of 45 percent.
THDA doesn’t lend the money directly; it’s all handled through private lenders listed on the agency’s website, greatchoicetn.com, Perrey said.
“We have literally scores of East Tennessee lenders who offer THDA products,” Perrey said. “That’s the place to start: with the lender, who will set you up with a mortgage, and set you up with the downpayment assistance program. We also think that the homebuyer education component is an important part of this.”
The first round of federal Hardest Hit Funds came in 2010, sending $7.6 billion to 18 states and the District of Columbia, which were identified as having unusually high unemployment or sharp drops in home prices, according to the U.S. Treasury Department.
Tennessee was one of the few states to use all of its first round of Hardest Hit Funds, Perrey said. Another $2 billion became available in 2016, of which this $60 million is allocated to Tennessee – enough to aid 4,000 homebuyers.
“The money actually becomes available on March 1,” Perrey said. “We've got four years to put it to work. We'd be delighted to use every nickel.”
About a third of the target ZIP codes are in or around Memphis, but the rest are scattered across cities statewide, he said.
“I think Tennessee is the only state where they allowed us to target more specifically to ZIP code level, to focus on neighborhoods that were perhaps a bit harder hit during the recession and may be a little bit slower to recover,” Perrey said.
Neighborhood revitalization depends on more than money; it also takes the presence of committed homeowners, and that’s what this program’s standards promote, he said.
“So this is a program that is not for someone who’s looking to buy something and flip it for a quick profit in a year and a half,” Perrey said.
The city already has several programs to fight blight and get people into good houses, Rogero said; this funding will boost some areas where the city is already working.
Burchett said it’s due to those programs that home ownership is possible for many people.
“You know, we talk a lot about the American Dream. And for many folks the American Dream is just that, it’s just owning a home – something some of us take for granted,” he said.
Knox County ZIP Codes eligible for THDA downpayment assistance:
For eligibility information and a list of participating lenders, go to greatchoicetn.com and click on the “First-time Homebuyers” section.