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Affordable Homeownership Program

Bristol|Johnson City|Kingsport, Tennessee

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See what you qualify for
Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$261,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is 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.

Do you have to pay it back?

Affordable Homeownership Program is forgiven after 5 years, so a buyer 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.

Who qualifies?

Affordable Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Standard HUD HOME exceptions.
  • The home is occupied as a primary residence
  • On credit: 620 typical minimum FICO.
  • A completed homebuyer education course, 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: 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.

The program excludes

  • Purchases above the $261,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

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

How do you apply?

Applications for Affordable Homeownership Program go through the administering agency.

  1. Take a homebuyer education course

    Required by the program, 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..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Apply through ETHRA or participating city HCD (Kingsport / Johnson City / Bristol); subject to annual HOME allocation., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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