If you are buying your first home in Chattanooga right now, the state of Tennessee may have some extra money for you! You read that right… the state of Tennessee is willing to give you $15,000 if you are a first time home buyer and you buy a home in one of four area codes.
Known as the Hardest Hit Fund, the fund was started in 2010 by the U.S. Department of Treasury to provide targeted aid to homeowners whose states were hit hard by the housing market crash. The fund was used to help owners stay in their homes, help underemployed buyers with mortgage assistance and prevent blight. While the market in Chattanooga stayed stable by comparison to other areas of the country, certain areas were hit. These areas became predominately rental areas with low home ownership as investors purchased foreclosed homes.
With the current market in Chattanooga seeing the lowest home inventory in history, buyers must be creative. All areas of Chattanooga are experiencing growth as first time home buyers are taking advantage of the loosening of bank restrictions. Assistance for those who have never purchased or who have not owned a home in 3 years is offered by the Hardest Hit Fund in the form of up to $15,000, which can be used towards down payment or closing costs. The buyer must qualify for a loan, or have cash to purchase a home, however, the additional $15,000 is a fantastic boost on the way to home ownership, especially when it is the entire down payment.
The income limit for applying is combined income of $59,500 for 1-2 people and $68,425 for 3+ member families. The zip codes are 37411, 37412, 37404 and 37406. Home purchase price can be up to $250,000.
Want more information on how you can be on the path to home ownership this year? Contact us today and we will help you get started. We partner with two local lenders, Christina Lane with Movement Mortgage and Sherri Boland with People’s Home Equity who are experienced and knowledgeable in assisting buyers in all stages of life purchase homes.