Creative Programs
New Construction
We believe community economic development is spurred through quality new building and affordable homeownership opportunities for local residents. Because of this, our main mission is to build affordable, quality homes for low-income homebuyers in Cumberland and surrounding counties. Since 1989, we have built 188 modest, affordable homes towards this mission.
Our homes are built by local licensed & insured subcontractors, overseen by our on-staff licensed local General Contractor. We sell homes to low-income homebuyers for the appraised price and quite often can offer significant down payment assistance to make up any gaps in financing. Our buyers utilize affordable, nonpredatory financing, which means they must have decent credit and enough income to support their mortgage payment. Most often, our buyers use the lending product offered by USDA Rural Development – 502 Direct program, which offers 100% financing. As a home seller, we often pay a significant portion of the closing costs; however, our buyers are required to pay some of these costs.
Mortgage Loans
We can help you obtain a mortgage pre-approval with USDA Rural Development’s 502 Direct mortgage program before you begin construction or begin working with your realtor to find a home on the market.
Pros of Mortgage Pre-Approval:
- Shows sellers and realtors you are serious about buying a home
- Gives you a good idea of what you can afford to spend
- Strengthens your position as a buyer when you make an offer
The 502 Direct program is only available to low-income homebuyers who wish to buy a home in a rural area.
Some households can also qualify for what is called “payment subsidy,” which means you could be eligible payment assistance on your monthly mortgage payment. This may diminish or go away if your income increases from year to year, and you may be required to give a portion of this assistance back should you ever sell your home in the future.
It is a great tool to get buyers to their goal of long-term homeownership. The program has competitive interest rates, too.
You may bring your own mortgage pre-approval from a different source, too, so long as it meets certain affordability requirements set by our funders at the time.
Home Repair Payment Assistance
In addition to believing new home building and homeownership opportunities positively impact community economic development, we believe that homeownership is a major asset to low-income households. Because of this, we provide very-low and low-income homeowners the opportunity to keep their homes repaired and safe to inhabit. Since 2009, we have provided financial assistance in the form of grants and low interest loans to 110 homeowners to make necessary repairs on their homes. This keeps their home’s value as an asset up and also maintains the home for the current owners and future homebuying generations.
Base requirements include:
- You or at least 1 applicant must have ownership in the home and must live there
- The repair(s) being requested must be necessary to maintain the home’s habitability.
- Must be low-income or very low-income (this number changes yearly and is based on family size, so please let us determine this through an application)
**If you are a low-income veteran living in a rural area, you may qualify for an additional type of repair assistance if we have it available. We urge you to turn in a home repair application with note of your veteran status.
Rental Deposit Grants for Homeless Veterans
Contacted by our local VA housing division, we began this program in 2023 to address a barrier to homeless veterans in Cumberland and surrounding counties. When a homeless veteran is working with the local VA office to secure long-term housing payment assistance through a Section 8 voucher and has located a safe place to rent, their only barrier remaining is often the $1,500 – $2,000 cost of rent deposit fees to be paid up front at lease signing.
Our program pays these rent deposit fees on behalf of the veteran as a one-time gift. This small bit of help transitions the veteran out of homelessness and gives him or her a true chance to “get back on their feet” in life. This is a true grassroots program as it is solely funded through an annual 5K fundraiser and local donations.
Utility Payment Assistance
This program helps prevent loss of utilities for households experiencing eligible financial hardship. We know a majority of households in our area live paycheck to paycheck, which means one hardship that reduces their financial capacity will significantly impact their ability to have utilities. This program aims to increase that household’s capability to weather a financial hardship (such as a medical issue) so their access to stable housing utilities is not at risk. There are specific requirements an documents needed; additionally, we will only help a household once every 18 months.
Weather Radio Campaign
Weather related damage to homes is on the rise. We give away free weather radios to homeowners who do not have the discretionary income to purchase one on their own. We believe this offers homeowners an additional weather-aware resource to (1) protect their household and (2) protect or take stock of the current status of their assets.
Follow our Facebook page to keep track of our next giveaway campaign in your county.
Michael Smathers Memorial Scholarship Fund
We recognize the importance of investing in students entering residential building trade programs. In honor of our Founder Michael (Mike) Smathers, we offer a scholarship to local students attending the Tennessee College of Applied Technology – Upper Cumberland (TCAT-UC). Mike was a skilled tradesmen in residential construction, so we honor his legacy by offering funding for higher education skilled learning to students in the building trade programs. Interested students should apply directly with TCAT-UC.
To learn more about Mike’s legacy, please visit the page about Our Founder by clicking here.
Donate directly to this scholarship:
