Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage

What is Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage is a first mortgage for homebuyers in Chattanooga, Tennessee, administered by Habitat for Humanity of Greater Chattanooga Area.

• Habitat for Humanity of Greater Chattanooga provides 0% interest mortgages on Habitat-built homes to income-qualified households who have been Hamilton County residents for at least 12 months. Buyers must complete 200-400 sweat equity hours and homebuyer education. Max $2,000 in collections/charge-offs/judgments allowed. PQQ is currently closed; prospective buyers can join the notification list.
• 0% interest mortgage.
• Homes priced below market.
• No minimum credit score.
• Sweat equity replaces down payment.
• Funding comes from Habitat for Humanity of Greater Chattanooga Area / private fundraising.

Do you have to pay it back?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage is a first mortgage and is repaid under the terms set by Habitat for Humanity of Greater Chattanooga Area.

• Repayment is triggered by Sale, transfer, or failure to maintain owner-occupancy.
• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage limits household income to 80% of the area median income, which varies by county and household size.

• 2026 income guidelines per HUD for Hamilton County; must meet Habitat income band; contact habichatt.org 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?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage caps the purchase price as follows: Habitat-set pricing; below market value.

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

Where does it apply?

Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage serves buyers purchasing in Chattanooga, Tennessee.

• The program targets specific areas: Hamilton County, Tennessee.

How do you apply?

Applications for Habitat for Humanity of Greater Chattanooga Affordable Homeownership Mortgage go through Habitat for Humanity of Greater Chattanooga Area, 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 Habitat for Humanity of Greater Chattanooga Area homebuyer education.

2. 2

   Contact Habitat for Humanity of Greater Chattanooga Area to reserve funds

   Funds are reserved through Pre-Qualification Questionnaire (PQQ) currently CLOSED; notification list available, 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.