The Housing Fund Shared Equity Homeownership

The Housing Fund Shared Equity Homeownership is a shared-appreciation loan for homebuyers in Tennessee, administered by The Housing Fund (CDFI). A shared-equity lending program available statewide in Tennessee that covers ~25% of a home's purchase price (with ~74% from a partner first-mortgage lender and 1% buyer contribution). On resale, THF recovers its 25% at 0% interest and shares appreciation equally with the seller, reinvesting to keep homes permanently affordable. Approximately 25% of the home's purchase price as a shared-equity investment; buyer needs only 1% down. Funding comes from The Housing Fund / private investors (CDFI).

The Housing Fund Shared Equity Homeownership is a shared-appreciation loan and is repaid under the terms set by The Housing Fund (CDFI). Repayment is triggered by On resale, THF recovers its 25% contribution at 0% interest and shares appreciation 50/50. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

The Housing Fund Shared Equity Homeownership is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Varies by first-mortgage partner: Pinnacle Financial Partners 650, FirstBank 640, Citizens Bank 620. A homebuyer education course is required, through THDA-approved first-time homebuyer education (6 hrs) plus 2 hrs Shared Equity education. Residency requirement: Available statewide in Tennessee (check lender participation in your community). Approximately 25% of purchase price provided as shared-equity. $600 processing fee at closing; $50 monthly stewardship fee. THF recovers its 25% at 0% interest at resale and shares appreciation 50/50 (improvements excepted). Buyer cannot buy out THF's 25%. Must use Providence Title. Credit minimum varies by lender (Pinnacle 650, FirstBank 640, Citizens 620). Requires 2 hours of Shared Equity education in addition to 6-hour THDA homebuyer education.

The Housing Fund Shared Equity Homeownership limits household income to 120% of the area median income, which varies by county and household size. Household income at or below 120% of the county Area Median Income (varies by Tennessee county; see THF income-guidelines page). 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.

The Housing Fund Shared Equity Homeownership serves homebuyers purchasing anywhere in Tennessee.

Applications for The Housing Fund Shared Equity Homeownership go through The Housing Fund (CDFI), which publishes the current terms and the application steps on its own site. 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.