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THDA Home Page A brief description of the various housing programs that THDA administers Contact staff at THDA via email or phone

Housing Choice Voucher Program: Homeownership Option


The Homeownership Option of the Housing Choice Voucher Program is a part of the Tennessee Housing Development Agency's Rental Assistance Division (Section 8). The Homeownership Program offers a mortgage subsidy to low-income families who are not able to afford to purchase a home through traditional financing.

In the Housing Choice Voucher program, families typically pay 30% of their monthly-adjusted income (or the family's Total Tenant Payment) toward homeownership expenses, and THDA pays the difference between the family's Total Tenant Payment and the actual monthly mortgage payment. The mortgage assistance payments are paid directly to the lender's loan servicing company or the nonprofit agency that acts as the lender. Most homes close with a traditional first mortgage and a second mortgage financed by a NeighborWorks®-affiliated nonprofit organization. Some participants have also purchased their homes through USDA/ Rural Development (http://www.rurdev.usda.gov/tn/) and Habitat for Humanity affiliates. Qualified housing types include single family homes, manufactured homes, condominiums, townhouses and modular homes (must have a permanent foundation).

Application Process
Potential participants must submit a pre-application for screening, and the program specialist determines family eligibility. The Homeownership Specialist sends pre-applications to clients as they express interest in the program throughout the year.

Eligibility Requirements
Applicants must currently hold a Housing Choice Voucher to be eligible for the program. They must also be first-time homebuyers (or have not owned a home in the last three years). Bankruptcies must be discharged for at least one year for Chapter 13 and three years for Chapter 7, before a family can participate in the program. Families must meet the requirements below.

Elderly/Disabled Families

Minimum annual income of (threshold)$6,540
Legally disabled spouse/HOH
Minimum age requirement 63 yrs

All Other Families

Minimum annual income of $15,000
Employed at least 12 months (avg. of 30 hrs per week)


NeighborWorks® Partners

Affordable Housing Resources
United Housing, Inc.
Knox Housing Partnership


Region

Middle Tennessee
West Tennessee
East Tennessee

For more information on the Homeownership Program, please contact Mia Parker at (615) 815-2172, or Gretchen Mason, FSS/Homeownership Voucher Manager, at (615) 815-2165.

404 James Robertson Parkway, Suite 1200, Nashville TN 37243-0900
General Information 615-815-2200 -- Toll Free Number 800-228-THDA -- TTY Line 615-532-2894