The mortgage market crisis amid the recession of 2007/2008 may seem like a distant memory, but in neighborhoods throughout middle Tennessee there are signs of a slow recovery.
In Clarksville homes in what look to be bustling neighborhoods have sat vacant for months if not longer. In the ever growing Nashville community, re-development has skipped over pockets of neighborhoods.
THDA wants to give new home buyers a big incentive to make the leap into home ownership. The Hardest Hit Fund Down Payment Program gives qualifying first time homebuyers $15,000 to go towards a down payment.
"The funds we get to apply here come from the Department of U.S. Treasury, it's part of their Hardest Hit Fund," THDA Executive Director Ralph Perrey said. “It’s not a gift, it’s not a grant. We’re going to structure this as a second mortgage, a soft second if you will. It’ll be forgiven over ten years during which time the borrower accrues no interest and makes no payments. Starting in year six, 20 percent of that down payment will be forgiven each year."
"It really helps really want to make you commit to the community if you want to get the full benefit of the down payment assistance program," Clarksville Mayor Kim McMillan said.
In Clarksville homes must be purchased in one of two zip codes, one of which is in Councilwoman Wanda Smith's district. "I think that this plan is a great plan in the sense that it will take up the slack where the institutions probably couldn't loan the money freely," she said.
THDA is offering the same program in parts of Nashville. "This program is going to bring stability to property values and make neighborhoods safer by attracting more residents who will be invested there," Nashville Mayor Megan Barry said.
Qualifying home buyers must have credit score of at least 640 and a debt to income ratio capped at 45 percent. For more information and to apply visit www.greatchoicetn.com.
