Affordable Housing Assistance

What is Affordable Housing Assistance?

Affordable Housing Assistance is a forgivable loan for homebuyers in Murfreesboro, Tennessee.

• Murfreesboro Community Development HUD HOME-funded forgivable second mortgage for FTHBs purchasing within Murfreesboro city limits. Up to $15,000 at 0% interest, deferred, forgiven over 5 years. 80% AMI ceiling.
• City of Murfreesboro Affordable Housing Assistance is a HUD HOME / CDBG-funded forgivable second mortgage administered by the City of Murfreesboro Community Development department. Eligible buyers receive up to $15,000 toward down payment and closing costs to purchase a primary residence within Murfreesboro city limits. The loan is 0% interest, deferred (no monthly payments), and forgivable over a 5-year HUD HOME affordability period. Pairs commonly with THDA Great Choice Plus.
• Funding comes from Federal, HOME, and City.

Do you have to pay it back?

Affordable Housing Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven over 5-year HUD HOME affordability period (1/5 per year). 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 Housing Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Affordable Housing Assistance 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 Nashville-Davidson-Murfreesboro-Franklin MSA. 2025 limits: $51,700 (1p) to $97,500 (8p).
• 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 Housing Assistance caps the purchase price at $350,000.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (1 unit owner-occupied), manufactured home on permanent foundation per HOME / first-mortgage rules.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Affordable Housing Assistance 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 Housing Assistance serves buyers purchasing in Murfreesboro, Tennessee.

How do you apply?

Applications for Affordable Housing Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agency required. Local providers include Affordable Housing Resources, Inc. (Nashville), United Housing, Inc. (Memphis), and Tennessee Valley Coalition. Online via eHome America accepted..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply through Murfreesboro Community Development; subject to annual HOME / CDBG allocation., and are subject to availability.

3. 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.