NASHVILLE, Tenn. (WKRN) — It’s a big chunk of change for an even bigger mission.
According to the latest data from RE/MAX, with the median home sale price in Nashville sitting just under $400,000, it’s become nearly impossible for some to afford a down payment.
Two organizations are hoping to change that, celebrating a $10 million investment in affordable housing here in Middle Tennessee, not only helping more people get into homes and build equity, but they’re creating affordable housing stock as well.
“I think we’re making a difference and we’re committed to making a difference,” said Hugh Queener, chief administration officer with Pinnacle Financing.
It’s why Pinnacle Financial Partners just committed to a $10 million investment in The Housing Fund’s Shared Equity Program. Their goal is to enroll 100 people.
“A lot of people we find are renting they can afford rent they have monthly income they just don’t have the savings to put a down payment on the house,” Terry Woodall, the Vice President of Community Lending with The Housing Fund. He says this money will pave the way for new homeowners to build wealth through homeownership.
The money will fund home loans made to low-to-moderate income individuals and families in Nashville and Middle Tennessee. In addition, it will help with payment assistance, homeowner education, leverage additional capital, preserve, and maintain existing affordable housing, and work with developers to create new affordable units.
Homebuyers in the program are only required to provide one percent of the purchase price, with 25 percent contributed by The Housing Fund and the other 74 percent coming from a Pinnacle loan.
“This program allows that homeowner to build that equity now only and participate in the appreciation of the property but also it maintains the housing stock,” Queener said.
The Shared Equity Program is designed for homes to be purchased by and eventually resold to low-to-moderate income individuals and families, constantly renewing the available affordable housing stock.
Any appreciation in value is split between the seller and The Housing Fund, who then reinvests that money back into the home by helping the next buyer with a 25 percent contribution toward their purchase.
“I feel like we’re making a big difference and you know, I know, it’s a big problem and we’re not going to fix the problem, but our goal is to address what we can,” Woodall said.
We’re told homes may not be available for 60-90 days, but if you’re interested in applying, click here.