TCAC Awarded New Down Payment Assistance Grant
THDA awarded grant funds to TCAC Morristown, TN that will provide up to 40 low-to-moderate income families with down payment assistance to purchase a new home.
The $500,000 grant from THDA will allow TCAC to provide assistance up to $14,999 to cover down payment and closing costs for eligible first-time homebuyers in Cocke, Hamblen, Grainger, Jefferson, Claiborne and Union counties.
“A down payment 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.”
TCAC 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 down payment and closing costs.
“A majority of lower-income buyers do not have the savings necessary to pay the closing costs,” Patton said “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. The home must also be located in one of the six counties being served and be able to pass a home inspection.