Tenn. Housing Development Agency helping down payment costs in six East Tenn. counties
KNOXVILLE, Tenn. (WVLT) -The Tennessee Housing Development Agency awarded grant funds to Tennessee’s Community Assistance Corporation that will help with down payment assistance to purchase a new home.
According to a release, the $500,000 grant from TDHA will allow TDAC to provide assistance up to $14,999 to cover downpayment and closing costs for eligible first-time homebuyers in Cocke, Hamblen, Grainger, Jefferson, Claiborne and Union counties.
“A downpayment 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.”
TDAC 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 downpayment and closing costs.
“A majority of lower-income buyers do not have the savings necessary to pay the closing costs,” said Patton. “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.
“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.”
For more information visit TCAC here.
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