Shared Equity

Shared Equity is a powerful lending tool to help limited-income Tennesseans access the dream of homeownership. In return for receiving substantial assistance toward a home purchase, the property’s appreciation in value gets shared between the first-time homebuyer, future homeowners, and the larger community.

How Does It Work?

The Housing Fund’s Shared Equity program partners with investors to cover most of a home’s purchase price. Homebuyers are only required to provide 1% of the purchase price while 25% is covered by The Housing Fund and 74% comes from a loan through one of THF’s participating first-mortgage lending partners.

Once a homeowner is ready to move on, they can sell to another qualified low- to moderate-income buyer. In order to keep the property affordable, The Housing Fund gets back its 25% contribution at 0% interest at closing. Additionally, any appreciation in value is split equally between the seller and The Housing Fund. The Housing Fund then reinvests this money back into the home by helping the next buyer with a 25% contribution toward their purchase, thus helping even more homebuyers to participate in Shared Equity with different properties. The next buyer must meet THF’s income guidelines.

How Do I Qualify?

First-time, income-eligible homebuyers are able to participate in THF’s Shared Equity program. The Housing Fund considers a first-time homebuyer as someone who has not had an ownership-interest in a home in the last three years.

In order to be considered for the Shared Equity program, first-time homebuyers must have an annual household income that is at or below 120 percent of your Area’s Median Income (AMI).


Available Properties for THF-Initiated Shared Equity

To help meet community needs around rising unaffordability, The Housing Fund has acquired several affordable, single-family homes in Tennessee. THF will utilize the Shared Equity lending program to create new limited-income homeowners for these properties.

How Do I Apply?

In order to be considered for down-payment assistance through The Housing Fund’s Shared Equity program, prospective homebuyers must:

Questions? Contact Senior Mortgage Advisor Candice Winburn at 615-515-2211 (phone) or

Frequently Asked Questions

The Shared Equity program invests equity in your home that equals about 25% of the home’s value. The mission of Shared Equity is to help low- and moderate-income households experience the benefit of homeownership through permanently affordable homes to promote sound, stable, and successful homeownership.

THF works with Citizens Bank, Pinnacle Financial Partners, and FirstBank for lending in our Shared Equity program.

Please check our eligibility requirements here.

THF’s various first-lending partners for Shared Equity have different credit requirements. The minimum credit score for Pinnacle Financial Partners is 650, for FirstBank it is 640, and for Citizens Bank it is 620.

  • Participate in a Shared Equity introductory meeting/session
  • Qualify for a first mortgage loan with a Shared Equity permitted lender
  • Meet the income criteria for Shared Equity
  • Qualify for the Shared Equity investment
  • Complete 6-hours of THDA homebuyer education
  • Complete 2 hours of Shared Equity education

Once THF receives a complete information packet from your first mortgage lender, it will take 7-10 business days to process before approval.

Yes, when you make certain improvements to your home, we want you to keep 100% of the capital improvement value added through those improvements. THF does not share in any of the capital improvement.

No, we work exclusively with Providence Title for our Shared Equity program.

It is a stewardship fee that allows us to provide support after the home has been purchased.

We offer Shared Equity across the state of Tennessee.

The homeowner is responsible for 100% of ownership costs of the home. This includes paying the mortgage, taxes, repairs, regular maintenance, and insurance to protect the property.

No. The Housing Fund makes an investment in these homes to keep them permanently affordable and gives others the same opportunity that Shared Equity gave you, paying it forward.

Yes, in most cases. You must inform THF so that we can ensure that you are not putting yourself in a vulnerable position by taking on more debt than you can reasonably afford.

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