CNE Down Payment Assistance (Regional)

What is CNE Down Payment Assistance (Regional)?

CNE Down Payment Assistance (Regional) is a second mortgage for homebuyers in Chattanooga, Tennessee, administered by Chattanooga Neighborhood Lending (CNE / Chattanooga Neighborhood Enterprise).

• CNE's proprietary Down Payment Assistance Program provides up to $25,000 as an amortizing second mortgage to help homebuyers in Southeast Tennessee cover down payments and closing costs. The loan begins repayment in year one at the same rate as the first mortgage, fully amortizing over a maximum of 15 years with no prepayment penalty. Separate from and in addition to the City of Chattanooga DPA program.
• Up to $25,000 in DPA; no prepayment penalty; covers closing costs and down payment; 10-county regional coverage beyond Hamilton County.
• Funding comes from CNE proprietary.

How much assistance does it provide?

CNE Down Payment Assistance (Regional) offers up to $25,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Chattanooga Neighborhood Lending (CNE / Chattanooga Neighborhood Enterprise) determines any individual award.

Do you have to pay it back?

CNE Down Payment Assistance (Regional) is a second mortgage and is repaid under the terms set by Chattanooga Neighborhood Lending (CNE / Chattanooga Neighborhood Enterprise).

• Repayment is triggered by Monthly amortizing beginning in year 1 of purchase; payoff in max 15 years.
• 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?

CNE Down Payment Assistance (Regional) is open to buyers who will live in the home as their primary residence.

What are the income limits?

CNE Down Payment Assistance (Regional) sets its income limit as follows: Qualification dependent on household size and income; contact CNE for current limits.

• 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?

CNE Down Payment Assistance (Regional) can be used for Single Family, Condo, and Townhouse.

• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

CNE Down Payment Assistance (Regional) serves buyers purchasing in Chattanooga, Tennessee.

• The program targets specific areas: Bledsoe, Bradley, Grundy, Hamilton, Marion, McMinn, Meigs, Polk, Rhea, Sequatchie counties (10-county SE Tennessee region).

How do you apply?

Applications for CNE Down Payment Assistance (Regional) go through Chattanooga Neighborhood Lending (CNE / Chattanooga Neighborhood Enterprise), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Chattanooga Neighborhood Lending (CNE / Chattanooga Neighborhood Enterprise) to reserve funds

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

2. 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.