Affordable Homeownership Program

Affordable Homeownership Program is a forgivable loan for homebuyers in Bristol|Johnson City|Kingsport, Tennessee. NE TN/VA HOME Consortium-administered HUD HOME-funded forgivable second mortgage for FTHBs in the seven-county Tri-Cities region. Up to $15,000 at 0% interest, deferred, forgiven over 5 years. 80% AMI ceiling, $209K-$261K max purchase. Administered through ETHRA and city HCDs (Kingsport, Johnson City, Bristol). The Northeast Tennessee/Virginia HOME Consortium Affordable Homeownership Program provides HUD HOME-funded forgivable second-mortgage assistance to eligible first-time homebuyers in the seven-county Tri-Cities region (Tennessee side: Carter, Greene, Hawkins, Johnson, Sullivan, Unicoi, Washington counties, including the cities of Bristol, Johnson City, Kingsport) plus the Virginia side. Eligible buyers receive up to $15,000 toward down payment and closing costs. The loan is 0% interest, deferred, and forgivable over a 5-year HUD HOME affordability period (1/5 per year of owner-occupancy). Administered through East Tennessee Human Resource Agency (ETHRA) and city HCD departments in Kingsport, Johnson City, and Bristol on behalf of the Consortium. Funding comes from Federal, HOME, and Consortium.

Affordable Homeownership Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven over 5-year HOME affordability period (1/5 per year of owner-occupancy). Unforgiven balance due on sale/refi/transfer/non-occupancy before period end, limited to net proceeds. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Affordable Homeownership Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Standard HUD HOME exceptions. On credit, the program states: 620 typical minimum FICO. A homebuyer education course is required, through HUD-approved housing counseling agency required (certificate before closing). Local providers include ETHRA, NETWORKS Sullivan Partnership, and HUD-approved counseling agencies in Tri-Cities. Residency requirement: Property within Northeast TN/VA HOME Consortium boundaries; primary residence; 5-year affordability period. Citizenship or immigration status: Per HUD HOME federal eligibility. First-time homebuyer required. Household income at or below 80% AMI per HUD HOME limits for Tri-Cities MSA (2025: $39,500 (1p) to $75,350 (8p)). Property must be located within the Northeast TN/VA HOME Consortium boundaries (Carter, Greene, Hawkins, Johnson, Sullivan, Unicoi, Washington counties on the TN side; Bristol VA / Washington VA on the VA side). Max purchase price $209,000 (existing) / $261,000 (new construction) per HUD HOME 95% area median for Tri-Cities. HUD-approved housing counseling required. Minimum $500 borrower contribution. Property must pass HQS / NSPIRE; pre-1978 housing subject to Lead Safe Housing Rule. 5-year HOME affordability period.

Affordable Homeownership Program limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% AMI per HUD HOME for Tri-Cities (Kingsport-Bristol-Bristol) MSA. 2025 limits: $39,500 (1p) to $75,350 (8p) (verify current schedule). The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Affordable Homeownership Program caps the purchase price at $261,000. Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (1 unit owner-occupied), manufactured home on permanent foundation. New construction is eligible. Manufactured homes are eligible.

Affordable Homeownership Program names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Affordable Homeownership Program serves homebuyers purchasing in Bristol|Johnson City|Kingsport, Tennessee.

Applications for Affordable Homeownership Program go through the administering agency. Funds are reserved through Apply through ETHRA or participating city HCD (Kingsport / Johnson City / Bristol); subject to annual HOME allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.