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.

First-Time Homebuyer Program is forgiven after 5 years, so a homebuyer 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.

First-Time Homebuyer Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Standard HUD HOME exceptions (displaced homemakers, single parents, manufactured homes without permanent foundations). On credit, the program states: 620 typical minimum FICO. A homebuyer education course is required, 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. Residency requirement: Property within Clarksville city limits; primary residence; 5-year affordability period. Citizenship or immigration status: Per HUD HOME federal eligibility. First-time homebuyer required (no homeownership in past 3 years; standard HOME exceptions). Household income at or below 80% AMI per HUD HOME limits for Clarksville-Hopkinsville MSA (2025: $33,720 (1p) to $84,750 (8p)). Max purchase price $271,000 (existing) / $282,000 (new construction) per HUD HOME 95% area median for Clarksville. Property must be within Clarksville city limits and used as borrower's primary residence. HUD-approved housing counseling required. Minimum $500 borrower contribution. Property must pass HQS / NSPIRE; pre-1978 housing subject to Lead Safe Housing Rule. 5-year HUD HOME affordability period.

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.

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.

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.

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

Applications for First-Time Homebuyer Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Apply through Clarksville NCS intake; subject to annual HOME / CDBG allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.