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City of Knoxville Down-Payment Assistance Program

City of Knoxville, Housing & Neighborhood Development Department · Knoxville, Tennessee

Last verified
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Assistance

$10,000

The maximum the program publishes — not an offer

Repayment

Deferred

No payments until the home is sold or refinanced

What is City of Knoxville Down-Payment Assistance Program?

City of Knoxville Down-Payment Assistance Program is a deferred second loan for homebuyers in Knoxville, Tennessee, administered by City of Knoxville, Housing & Neighborhood Development Department.

  • City program to increase homeownership rates in Knoxville by providing down-payment assistance to income-eligible buyers. Assistance is available only on homes developed by the City's nonprofit partners.
  • Down-payment assistance reported as up to 10% of the purchase price, capped at $10,000, for eligible homes within Knoxville city limits.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal - HUD (City of Knoxville HOME/CDBG).

How much assistance does it provide?

City of Knoxville Down-Payment Assistance Program offers up to $10,000 in assistance.

  • Amounts are the program's published maximums, not an offer — City of Knoxville, Housing & Neighborhood Development Department determines any individual award.

Do you have to pay it back?

City of Knoxville Down-Payment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Knoxville Down-Payment Assistance Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • Residency: Home must be within Knoxville city limits and developed by a partner organization.
  • Funds available ONLY for homes that are (or will be) developed by Home Source East Tennessee, Neighborhood Housing Inc., or East Tennessee Housing Development Corporation. The $10,000 / 10% cap is from secondary summaries; the official program page did not render numeric limits, so amount and income limits should be re-verified directly with the City. Reduced restrictions reportedly apply to police, firefighters, and teachers (needs primary-source confirmation).

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?

City of Knoxville Down-Payment Assistance Program sets its income limit as follows: Low-income limits by household size (HUD-determined; specific figures not confirmed from primary source).

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Where does it apply?

City of Knoxville Down-Payment Assistance Program is a federal program, so it is not limited to Tennessee.

How do you apply?

Applications for City of Knoxville Down-Payment Assistance Program go through City of Knoxville, Housing & Neighborhood Development Department, which publishes the current terms and the application steps on its own site.

  1. Contact City of Knoxville, Housing & Neighborhood Development Department to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. 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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