Clinch-Powell Shift to Ownership - Second Shift Loan & DPA

What is Clinch-Powell Shift to Ownership - Second Shift Loan & DPA?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA is a deferred second loan for homebuyers in Newport, Tennessee, administered by Clinch-Powell RC&D Council.

• The SHIFT to Ownership program helps renting households transition into homeownership through a structured pathway in as little as 6 months. Includes a SHIFT Rent Until You Own path and a direct SHIFT to Ownership path. Affordable financing includes a Second Shift 0% interest, $0-payment deferred second mortgage, special down payment assistance, affordable gap loans, and shared appreciation loans. Participants receive dedicated coaching and counseling. Currently available in Cocke County TN with expansion planned.
• 0% interest $0-payment Second Shift deferred loan.
• Special DPA and gap financing.
• Dedicated housing coach.
• Rent-to-own pathway option.
• Available to renters with limited credit history.
• Funding comes from Clinch-Powell RC&D / CDFI / philanthropic / HOME / SHIFT partner network.

Do you have to pay it back?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due on sale of home; $0 monthly payment during ownership.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA is open to buyers who will live in the home as their primary residence.

What are the income limits?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA sets its income limit as follows: Low-to-moderate income households; stable income and ability to pay fair rent required as entry criteria; contact Clinch-Powell for income thresholds.

• 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.

What kind of home can it be used for?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA caps the purchase price as follows: Clinch-Powell Shift program homes or other properties in service area.

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Clinch-Powell Shift to Ownership - Second Shift Loan & DPA serves buyers purchasing in Newport, Tennessee.

• The program targets specific areas: Currently Cocke County TN (Newport); expansion to surrounding East TN counties anticipated.

How do you apply?

Applications for Clinch-Powell Shift to Ownership - Second Shift Loan & DPA go through Clinch-Powell RC&D Council, 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 Clinch-Powell RC&D SHIFT coaching and counseling program (6-24 month pathway to mortgage readiness).

2. 2

   Contact Clinch-Powell RC&D Council to reserve funds

   Funds are reserved through Apply through Clinch-Powell Shift office in Newport TN, 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.