First-Time Homebuyer Program

What is First-Time Homebuyer Program?

First-Time Homebuyer Program is a forgivable loan for homebuyers in Clarksville, Tennessee.

• Clarksville NCS HUD HOME-funded forgivable second mortgage for FTHBs purchasing within Clarksville city limits. Up to $10,000 at 0% interest, deferred, forgiven over 5 years. 80% AMI ceiling, $271K-$282K max purchase, $500 buyer contribution.
• City of Clarksville Neighborhood and Community Services (NCS) First-Time Homebuyer Program is a HUD HOME / CDBG-funded forgivable second mortgage. Eligible Clarksville buyers receive up to $10,000 toward down payment and closing costs to purchase a primary residence within Clarksville city limits. The loan is 0% interest, deferred (no monthly payments), and forgivable over a 5-year HUD HOME affordability period. Funds may be applied to down payment, closing costs, and first-mortgage rate buy-down at closing.
• Funding comes from Federal, HOME, and City.

Do you have to pay it back?

First-Time Homebuyer 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 HUD 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?

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

What are the income limits?

First-Time Homebuyer 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 Clarksville-Hopkinsville MSA. 2025 limits: $33,720 (1p), $38,560 (2p), $43,360 (3p), $48,160 (4p), $52,000 (5p), $55,840 (6p), $59,680 (7p), $84,750 (8p) (verify current schedule with NCS).
• 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?

First-Time Homebuyer Program caps the purchase price at $282,000.

• 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?

First-Time Homebuyer 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?

First-Time Homebuyer Program serves buyers purchasing in Clarksville, Tennessee.

How do you apply?

Applications for First-Time Homebuyer Program 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 (certificate before closing). Local providers include Tennessee Valley Coalition for the Homeless, Habitat for Humanity Montgomery County NCS-affiliated counseling. Online via eHome America accepted..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply through Clarksville NCS intake; 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.