The Housing Fund Shared Equity Homeownership

What is 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).

Do you have to pay it back?

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.

Who qualifies?

The Housing Fund Shared Equity Homeownership is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through THDA-approved first-time homebuyer education (6 hrs) plus 2 hrs Shared Equity education..

2. 2

   Contact The Housing Fund (CDFI) to reserve funds

   Funds are reserved with the provider 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.