A Home Ownership NOW loan (NOW) offers low to moderate-income homebuyers in Cheatham, Dickson, Robertson, Rutherford, Sumner or Wilson counties four tiers of financial assistance depending upon the total household income. This is a second mortgage loan with a low monthly payment of $50. With one phone call and a few simple forms, you will be on your way to home ownership.
Geographic Eligibility:
MSA* COUNTIES (Cheatham, Dickson, Robertson, Rutherford, Sumner or Wilson) *Metropolitan Statistical Area
For the MSA* counties listed above, the first mortgage must be a conforming conventional (fixed rate), VA or USDA Rural Development loan offered by an FHA TN-approved lender.
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The home must be located in: Cheatham, Dickson, Robertson, Rutherford, Sumner or Wilson
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The home must be the buyer’s primary residence.
Requirements:
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All NOW loans are secured by a Promissory Note and a Second Deed of Trust, subordinated only to a first mortgage
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All borrowers are required to complete homebuyer education classes before closing. These classes are offered by THDA approved counseling agencies. THF will assist the client in locating the most appropriate and convenient agency.
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Borrower must contribute at least 1% of the sales price from their own funds to the purchase
- All borrowers must be at or below the area median income (AMI)
Income Criteria:
(Effective 12/1/2011)
Tier 1 (60% of area media income) Household gross (before taxes) income is at or below:
1 person:................. $28,250
2 people:................. $32,250
3 people:................. $36,300
4 people:................. $40,300
5 people:................. $43,550
6 people:................. $46,750
7 people:................. $50,000
8 people:................. $53,200
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Clients can borrow up to $7000 for Closing Costs, Prepaids and Down Payment Assistance
- The interest rate is 5%
- Loan will include a variable recording fee and a processing fee of $350
Tier 2 (80% of area median income) Household gross (before taxes) income is at or below:
1 person:................. $37,600
2 people:................. $43,000
3 people:................. $48,350
4 people:................. $53,700
5 people:................. $58,000
6 people:................. $62,300
7 people:................. $66,600
8 people:................. $70,900
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Clients can borrow up to $7000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 7%
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Loan will include a variable recording fee and a processing fee of $350.00
Tier 3 (100% of area median income) Household gross (before taxes) income is at or below:
1 person:................. $47,000
2 people:................. $53,700
3 people:................. $60,400
4 people:................. $67,100
5 people:................. $72,500
6 people:................. $77,850
7 people:................. $83,250
8 people:................. $88,600
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Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 8%
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Loan will include a variable recording fee and a processing fee of $350
Tier 4 (120% of area median income) Household gross (before taxes) income is at or below:
1 person:................. $56,400
2 people:................. $64,450
3 people:................. $72,500
4 people:................. $80,550
5 people:................. $87,000
6 people:................. $93,450
7 people:................. $99,850
8 people:................. $106,300
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Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance
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The interest rate is 8%
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Loan will include a variable recording fee and a processing fee of $350
Enrollment:
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