Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Tennessee
The First-Time Homebuyer Program in the City of Clarksville provides assistance for income-eligible first-time homebuyers with closing costs and down payment to purchase their first home within the city.
Clarksville allocates a part of its annual HOME funds allocation to provide loans for down payment and approved closing costs to low-income applicants who are looking to buy a home. First-time homebuyers receive down payment funds as low-interest loans for a 10-year term. Moreover, as long as the homebuyer remains the owner/occupant, the closing cost will be paid as a zero-interest forgivable loan after 10 years.
The First-Time Homebuyer Program is only for applicants with an annual household income within 50%-80% of the area median income in Clarksville, Tennessee. The borrower must also be a first-time homebuyer, or someone who has not owned or held an ownership interest in a primary residence within the past three years. In addition, all applicants need to attend a free homebuyer education class for eligible households.
Single-family homes, condominiums, and/or townhouses within the City of Clarksville are all eligible property types. Then, the maximum purchase price for condominiums, townhouses, or single-family homes: $150,000 for existing homes; $227,000 for a new one. Furthermore, all properties must pass an inspection, and meet the Housing Maintenance Code of the City of Clarksville. An assessment for lead-based paint must also be done if the property was constructed prior to 1978.
All applicants must be within the 50-80% AMI
- 1-person household: $21,350 to $34,100
- 2-person household: $24,400 to $39,000
- 3-person household: $27,450 to $43,850
- 4-person household: $30,450 to $48,700
- 5-person household: $32,900 to $52,600
- 6-person household: $35,350 to $56,500
- 7-person household: $37,800 to $60,400
Tennessee is one of the few states that doesn’t have a down payment assistance programme like the one we see as one of the first-time homebuyer assistance programs in South Dakota.
The Office of Housing and Community Development in Clarksville acknowledges that a lot of first-time homebuyers need assistance with initial costs associated with a mortgage transaction. Thus, the Office created the First Time Home-Buyers Program to assist income-eligible applicants with down payment assistance and closing costs assistance to buy their first home in Clarksville. If the borrower stays in the house for at least five years and a month, down payment funds can be used as a second mortgage and fully forgiven. Plus, the closing costs offered are due upon the sale or transfer.
Eligible applicants must meet a few requirements to be eligible for the First Time Home-Buyers program. This program assists families whose income falls within the 50 to 80% of Clarksville area median income range.
- 1 person household: $19,000-$30,350
- 2 person household: $21,700-$34,700
- 3 person household: $24,400-$39,050
- 4 person household: $27,100-$43,350
- 5 person household: $29,300-$46,850
- 6 person household: $31,450-$50,300
- 7 person household: $33,650-$53,800
This program is only for first-time homebuyers. Therefore, it does not apply to those who owned a primary residence within the past three years. However, the program makes an exception to displaced homemakers. These are adults who lived in homes owned by their spouses, or who owned homes with their spouses. They can also be single parents who aren’t married, and who have custody or joint custody of one or minor children.
The First Time Home-Buyers Program is open to single family homes, townhouses, and/or condominiums that are located in Clarksville. Plus, the maximum purchase price must be $271,050. All properties must also pass the City of Clarksville Housing Maintenance Code, and home inspections are required. Additionally, an assessment for lead-based paint must be done on homes constructed before 1978.
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