Tennessee Downpayment Partnership (AHR)

What is Tennessee Downpayment Partnership (AHR)?

Tennessee Downpayment Partnership (AHR) is a silent second mortgage for homebuyers in Nashville, Tennessee, administered by Affordable Housing Resources, Inc. (AHR).

• The Tennessee Downpayment Partnership, run by nonprofit Affordable Housing Resources (AHR) in Nashville, helps first-time homebuyers with down payment or closing costs through a deferred, due-on-sale second loan. The assistance is not repaid until the home is resold, when the funds are recycled to help another first-time buyer. Borrowers must use a first mortgage from a participating partner bank and have household income at or below 80% of HUD limits.
• No monthly payments - deferred until sale.
• 0% interest.
• Helps with down payment and/or closing costs.
• Available across Middle Tennessee.
• Revolving fund recycles assistance.
• Funding comes from AHR revolving fund; CDFI Fund; participating bank partners.

Do you have to pay it back?

Tennessee Downpayment Partnership (AHR) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due on sale - deferred with no monthly payments; recaptured funds recycled to another first-time homebuyer.
• 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?

Tennessee Downpayment Partnership (AHR) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Tennessee Downpayment Partnership (AHR) limits household income to 80% of the area median income, which varies by county and household size.

• Borrower income with household size at or below 80% HUD income limits (2025 limits for Davidson County/Nashville MSA). 4-person dollar figure not stated.
• 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?

Tennessee Downpayment Partnership (AHR) can be used for Single Family.

Where does it apply?

Tennessee Downpayment Partnership (AHR) serves buyers purchasing in Nashville, Tennessee.

How do you apply?

Applications for Tennessee Downpayment Partnership (AHR) go through Affordable Housing Resources, Inc. (AHR), 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 AHR homebuyer education (online via eHome America, or phone/Zoom)..

2. 2

   Contact Affordable Housing Resources, Inc. (AHR) to reserve funds

   Funds are reserved through Borrower obtains a first mortgage from a participating bank, then schedules an Eligibility Determination Session with AHR., 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.