Washington, DC – (RealEstateRama) — Starting November 1, families buying homes in seven additional ZIP Codes across Tennessee can apply for $15,000 in financial assistance from the Tennessee Housing Development Agency.
The new ZIP Codes are:
- 37354 in McMinn and Monroe Counties
- 37650 in Unicoi and Washington Counties
- 37874 in Loudon, McMinn, and Monroe Counties
- 37877 in Jefferson and Hamblen Counties
- 37890 in Jefferson and Hamblen Counties
- 37920 in Knox and Blount Counties
- 38118 in Shelby County
With these additions, there will be 61 designated ZIP Codes for THDA’s HHF Down Payment Assistance program, stretching from Memphis to Kingsport. Qualified homebuyers in these areas can apply for $15,000 in financial assistance toward the down payment and closing costs on one of THDA’s Great Choice Home Loans.
“We’ve been highly successful at boosting interest and investment in these neighborhoods, which is good news for everyone on the block,” said THDA Executive Director Ralph M. Perrey. “We are successfully energizing the housing markets in the places that need it most.”
The THDA program targets ZIP Codes that are recovering most slowly from the effects of the Great Recession, especially foreclosures.
“In the first seven months of this program, THDA has nearly tripled our loan production to the initial 55 targeted ZIP Codes. We’re enormously pleased with how quickly homebuyers and the housing market have responded,” said Perrey. “We couldn’t be more excited to build on this success and expand the program to new neighborhoods.”
Statewide, THDA financed 1,340 home loans in the areas covered by the program between the launch date of March 1 and the end of September. That is a 184% increase over loan production in these neighborhoods in March through September of 2016.
THDA received $60 million from the U.S. Department of Treasury’s Hardest Hit Fund to launch the program, which requires homebuyers to qualify for a THDA Great Choice Home Loan to finance the purchase of an existing home in a designated ZIP Code.
Under the HHF-DPA program, down payment assistance is provided in the form of a second mortgage loan. This loan accrues no interest, requires no month payments, and can be completely forgiven if the homeowners do not move, sell, or refinance the home within 10 years.
THDA’s Great Choice Home Loan program offers a 30-year, fixed interest rate first mortgage loan to Tennesseans of moderate income. These home loans require at least a 640 credit score and are limited to first-time homebuyers in some areas.
Homebuyers in areas that are not included in the $15,000 HHF Down Payment Assistance program can still apply for financial assistance in the form of a 30-year Great Choice Plus second mortgage loan. This loan requires no monthly payments, accrues no interest, and is available in an amount up to five percent of the home’s purchase price.
Great Choice Home Loans and the HHF-DPA program are available to homebuyers through a network of private lenders statewide. Homebuyers can find more information and a lender in their county by visiting GreatChoiceTN.com.