Knoxville Area Habitat for Humanity Affordable Homeownership Mortgage

What is Knoxville Area Habitat for Humanity Affordable Homeownership Mortgage?

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

• Knoxville Area Habitat for Humanity provides 0% interest, no-fee first mortgages on Habitat-built homes to households earning 50-80% AMI in Knox County. A second, silent, forgivable mortgage is layered to make the home affordable. Buyers must complete 300 sweat equity hours and homebuyer education. No minimum credit score required.
• 0% interest first mortgage.
• Silent forgivable second mortgage.
• No minimum credit score.
• No origination fees.
• Funding comes from Knoxville Area Habitat for Humanity / private fundraising.

Do you have to pay it back?

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

• Repayment is triggered by Sale, transfer, or failure to maintain owner-occupancy; silent forgivable second also subject to retention terms.
• 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?

Knoxville Area Habitat for Humanity 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?

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

• 50%-80% of Area Median Income (AMI) for Knox County.
• 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?

Knoxville Area Habitat for Humanity 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?

Knoxville Area Habitat for Humanity Affordable Homeownership Mortgage serves buyers purchasing in Knoxville, Tennessee.

• The program targets specific areas: Knox County, Tennessee; currently active in Strawberry Plains community.

How do you apply?

Applications for Knoxville Area Habitat for Humanity Affordable Homeownership Mortgage go through Knoxville Area Habitat for Humanity, 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 Knoxville Area Habitat for Humanity homebuyer education program.

2. 2

   Contact Knoxville Area Habitat for Humanity to reserve funds

   Funds are reserved through Open application cycle; currently building in Strawberry Plains community, 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.