January 5, 2017 – Topping $409 million and 3,200 homebuyers in 2017, the Tennessee Housing Development Agency is celebrating its most productive year for home loans since the start of the Great Recession a decade ago.
These numbers represent a 43-percent increase in dollar value and a 49-percent increase in the number of homebuyers over 2016.
“The most exciting part is that the majority of our growth happened in counties and neighborhoods that were lagging behind the rest of the state in shaking off the effects of the economic downturn,” said THDA Executive Director Ralph M. Perrey.
Just over half of the homes purchased with a THDA home loan in 2017 were located in a ZIP Code identified by THDA as facing ongoing challenges, especially in terms of foreclosures and property values. In March, THDA began offering a new financial assistance program to help qualified homebuyers purchase existing homes in these areas. More than 1,749 Tennesseans took advantage of the program, which offers $15,000 in the form of a second mortgage loan to help cover the down payment and closing costs when buying a home.
“We have been tremendously effective at bringing new homeowners and new life to those ZIP Codes,” said Perrey. “Entire communities benefit when there’s an influx of engaged and excited homeowners, from property values to tax revenue to quality of life.”
Nearly 20 percent of home loans under this new program were for homes in Shelby County, followed by Knox County at 14 percent, Montgomery County at 13 percent, Madison County at 7 percent, and Davidson County at 7 percent.
“Everyone in our home loan division deserves a huge congratulations,” said Lindsay Hall, THDA’s Chief Operating Officer for Single Family Programs. “By creating a responsible path to affordable homeownership, we’re helping thousands of Tennessee families toward financial security and stability for years to come.”
This is the first time THDA has surpassed $400 million in home loans or 3,200 homebuyers in a single year since 2007.
THDA makes its Great Choice Home Loans available through a network of private lenders in all areas of Tennessee. All Great Choice Home Loans include the option of financial assistance in the form of a second mortgage loan without interest or monthly payment. These second loans are limited to five percent of the home’s purchase price except in targeted ZIP Codes.
For more information about Great Choice Home Loans, visit GreatChoiceTN.com.