NOW Loans A Home Ownership NOW loan (NOW) offers low to moderate-income homebuyers in Middle Tennessee three Tiers of financial assistance depending upon the total household income. This is a second mortgage loan, available at very low interest rates and a low monthly payment of $50. With one phone call and a few simple forms, you will be on your way to home ownership. Eligibility: The first mortgage loan must be a FHA, THDA, VA or conforming conventional loan offered by a FHA TN-approved lender The home must be located in: Cheatham, Davidson, Dickson, Robertson, Rutherford, Sumner, Williamson or Wilson counties. The home must be the buyer’s primary residence Requirements: All NOW loans are secured by a Promissory Note and a Second Deed of Trust, subordinated only to a first mortgage 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 Borrower must contribute at least 1% of the sales price from their own funds to the purchase Borrower may not have more than the reserve maximum in liquid assets, call (615) 780-7000 for details All borrowers must be at or below the area median income (AMI) Income Criteria: (Revised 02/13/2008) Tier 1 (60% of area media income)Your household gross (before take-out) income is at or below: 1 person:................. $26,500 2 people:................. $30,300 3 people:................. $34,100 4 people:................. $37,900 5 people:................. $40,900 6 people:................. $44,000 7 people:................. $47,000 8 people:................. $50,000 Clients can borrow up to $8500 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) Your household gross (before take-out) income is at or below: 1 person:................. $35,400 2 people:................. $40,450 3 people:................. $45,500 4 people:................. $50,550 5 people:................. $54,600 6 people:................. $58,650 7 people:................. $62,700 8 people:................. $66,750 Clients can borrow up to $7000 for Closing Costs, Prepaids, and Down Payment Assistance The interest rate is 7% Loan will include a variable recording fee and a processing fee of $350.00    Tier 3 (100% of area median income)  Your household gross (before take-out) income is at or below: 1 person:................. $44,200 2 people:................. $50,600 3 people:................. $56,900 4 people:................. $63,200 5 people:................. $68,300 6 people:................. $73,300 7 people:................. $78,400 8 people:................. $83,400 Clients can borrow up to $5000 for Closing Costs, Prepaids, and Down Payment Assistance The interest rate is 8% Loan will include a variable recording fee and a processing fee of $350 Enrollment: Interested borrowers should call THF at (615) 780-7000 to enroll in homebuyer education classes and for additional information Lenders should fill out the Request for Loan Approval Form and the Underwriting Guidelines; send the forms to THF along with the backup documentation requested; and tell the client to call THF to begin the homebuyer education THF will work with the client’s closing attorney to fund the loan and  funds will be wired at the time of closing   For further information please call (615) 780-7000 or email mail@thehousingfund.org.