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Purchase
CNE achieves its mission by targeting local neighborhoods
with potential for improvement and encouraging renters to become homeowners
through its home purchase loan department. Qualifying Chattanooga residents
are able to buy a home through CNE's financing programs in conjunction
with FHA, Fannie Mae, Freddie Mac, and the Tennessee Housing Development
Agency. Additionally, CNE provides educational seminars such as "FASTRAK®
to Homeownership," which ensure that its clients have all the tools
necessary to become responsible homeowners.
Second
Mortgage Program
CNE offers the Second Mortgage Program that is designed
to provide down payment assistance for Chattanooga residents buying
a home. The loan's interest rate varies from two to four percent, and
the Second Mortgage loans can be used in conjunction with a mortgage
arranged by CNE or by another lender or financial institution.
All of CNE's home purchase programs are available under the Affordable
Housing Assistance program (AHA). CNE works closely with many local
Banks and Mortgage Companies. CNE also makes second mortgages when an
approved outside lender finances the first mortgage.
Products:
Affordable Housing Assistance (AHA)
Amortizing 2nd Mortgage
Federal Funds
Maximum Mortg. Amt: up to 20% of sales price
Interest Rate: 2% <THDA Great Rate
Term: 30 years
Income Restriction: <=80% Area Median Income (AMI)
(household income)
Area: Citywide
Property Restrictions: Primary Residence
No tenant occupied properties
Pass Section 8 HQS Inspection
Mkt value <=95% FHA SF loan limit
Use: Down Payment/closing costs
Principal reduction
Affordable Housing Assistance (AHA)
Title Transfer 2nd Mortgage
Federal Funds
Maximum Mortg. Amt: $25,000 - $50,000
Interest Rate: 0% - no monthly payment
(no interest accrued)
Term: Loan repayment upon resell/Title
Transfer
Income Restriction: <=80% Area Median Income (AMI)
(household income)
Area: Designated properties in city limits
Property Restrictions: Primary Residence
No tenant occupied properties
Pass Section 8 HQS Inspection
Mkt value <=95% FHA SF loan limit
Use: Down Payment/closing costs
Principal reduction
Forgivable 2nd Mortgage
Non-Federal Funds
Maximum Mortg. Amt: Usually $5,000-$15,000
Interest Rate: 0% - no monthly payment
Term: 5 years – forgiven over 5 yrs
(ArtsMove, FN, JH, MLK, UTC)
5 years – forgiven after 5 yrs
(CIC)
Income Restriction: No income restriction
Area: Designated areas or properties
Property Restrictions: Primary Residence for 5 years
Use: Down Payment/closing costs
Principal reduction
ArtsMove, Community Impact of Chattanooga (CIC), Ft. Negley (FN), Jefferson
Heights (JH), MLK Tomorrow (MLK), UTC
NOTES: ArtsMove – earn living in the artistic field
Areas: W Main/E Main St
Cowart Area
Fort Negley Area
Jefferson Heights Area
ML King Area
UTC – remain full time employee of UTC
Area: Surrounding UTC
CIC - Area: Churchville
Orchard Knob
Glenwood
Affordable Housing Assistance (AHA)
Amortizing 2nd Mortgage
Non-Federal Funds
Maximum Mortg. Amt: up to 10% of sales price
Interest Rate: 2% <THDA Great Rate up to 6%
Term: 30 years
Income Restriction: <=115% Area Median Income (AMI)
Area: Citywide
Property Restrictions: Primary Residence
Use: Down Payment/closing costs
Principal reduction
Note: if Memorial Employer Assisted 2nd mortgages – must be employed
full time - receive a $400 grant to assist with closing costs
Section 8 to Homeownership
Amortizing 2nd Mortgage
Federal Funds
Maximum Mortg. Amt: up to $25,000 – based on Section 8
voucher amount
Interest Rate: 4%
Term: 10 years
Income Restriction: <=80% Area Median Income (AMI)
(household income)
Area: Citywide
Property Restrictions: Primary Residence
No tenant occupied properties
Pass Section 8 HQS Inspection
Buyer obtains Home Inspec.
City Home Inspection – pd by city
Mkt value <=95% FHA SF loan limit
Use: Down Payment/closing costs
Principal reduction
Possible combinations of 2nd mortgages
Using Forgivable Loans
MLK Tomorrow & UTC
MLK Tomorrow & Title Transfer
MLK Tomorrow & Amortizing Federal
MLK Tomorrow & Amortizing Non-Federal
MLK Tomorrow & Section 8
CIC & Amortizing Federal
CIC & Amortizing Non-Federal
CIC & Section 8
FT Negley & UTC
FT Negley & Title Transfer
FT Negley & Amortizing Federal
FT Negley & Amortizing Non-Federal
FT Negley & Section 8
Jefferson Heights & UTC
Jefferson Heights & Title Transfer
Jefferson Heights & Amortizing Federal
Jefferson Heights & Amortizing Non-Federal
Jefferson Heights & Section 8
ArtsMove & UTC
ArtsMove & Title Transfer
ArtsMove & Amortizing Federal
ArtsMove & Amortizing Non-Federal
ArtsMove & Section 8
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