KNOXVILLE, Tenn. (October 30, 2017) – Tennessee Housing Development Agency is expanding its popular $15,000 downpayment assistance program for qualified homebuyers by adding a new Knoxville-area ZIP code.
Starting November 1, families buying homes in the 37920 ZIP Code of South Knoxville can apply for $15,000 in financial assistance from the Tennessee Housing Development Agency.
This will be the eighth ZIP Code in Knoxville and Knox County to be included in THDA’s HHF Down Payment Assistance program, which allows qualified homebuyers to receive $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.”
Knoxville Mayor Madeline Rogero said the expansion of the program in Knoxville will allow more working families to benefit from its assistance.
“Adding South Knoxville to the Hardest Hit Fund Down Payment Assistance (HHF-DPA) program will allow even more moderate income people in Knoxville and Knox County to become homeowners,” Rogero said. “This program has already helped 200 families in Knoxville and Knox County, and we are pleased that the opportunity to become a homeowner has been expanded to another area.”
The THDA program targets ZIP Codes have been slow to recover from the effects of the Great Recession, especially foreclosures and stagnate home prices. In addition to 37920 in Knoxville, five other ZIP Codes in three East Tennessee counties and one Memphis ZIP Code will be added to the program in November as well. The expansion brings the number of eligible ZIP Codes statewide to 62.
“In the first seven months of this program, THDA has nearly tripled our loan production to the initial 55 targeted ZIP Codes, so 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.
In Knoxville and Knox County alone, THDA financed 199 home loans totaling over $20 million in the areas covered by the program between March 1 and the end of September.
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.
The 37920 ZIP Code covers much of southern Knox County and includes the communities of South Knoxville, Kingsley Station, Kimberlin Heights, New Hopewell and Woodfield Park.
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 monthly 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 HomeSource east tennessee and a network of private lenders statewide. Homebuyers can find more information and a lender in their county by visiting GreatChoiceTN.com.