Eligible homebuyers can receive up to $14,999
THDA grant to help with down payment costs in six East Tenn. Counties
Nov. 5, 2020 – Tennessee Housing Development Agency awarded grant funds to Tennessee’s Community Assistance Corporation that will provide up to 40 low-to-moderate income families with down payment assistance to purchase a new home.
The $500,000 grant from THDA will allow TCAC to provide assistance up to $14,999 to cover down payment and closing costs for eligible first-time homebuyers in Cocke, Hamblen, Grainger, Jefferson, Claiborne and Union counties.
“A down payment is often the biggest hurdle to overcome for working families wanting to buy a home,” THDA Executive Director Ralph M. Perrey said. “These funds will allow first-time homebuyers who would otherwise be able to afford a mortgage payment to overcome that obstacle.”
TCAC Executive Director Retha Patton said the grant will be used to help low-to-moderate income families, with the exact amount awarded based on the gap needed to cover the buyer’s down payment and closing costs.
“A majority of lower-income buyers do not have the savings necessary to pay the closing costs,” Patton said “So they don't feel like they can buy. We feel like this opens a lot of doors for homeownership for people.”
Patton said the eligible buyers will need to put in a minimum of one percent of the home’s value, with any costs outside of the closing costs qualifying. Patton said the income levels needed to qualify for the program vary by county and depend on the size of the purchaser’s household. The home must also be located in one of the six counties being served and be able to pass a home inspection.
“We’re ready to start administering this now and are just waiting on clients to help,” Patton said. “We think this program will help these communities because it gets people out of renting and helps them steady their monthly expenses, while at the same time giving them an opportunity to become more tied to their community as a homeowner”
Patton said interested residents can learn more about the program by contacting Michelle at TCAC at 423-586-7636 ext. 306 or visiting www.tcac1.org. Funds will be available on a first-come, first-served basis until funds are depleted.
The HOME program is funded by the U.S. Department of Housing and Urban Development and is administered in part in Tennessee by THDA.
HOME grants must be used for the production, preservation, or rehabilitation of affordable housing for low and very low income families and individuals.