What is the Hardest Hit Fund?

What is the Hardest Hit Fund?

If you’re an unemployed or significantly underemployed Tennessee homeowner and are struggling to pay your mortgage, you can now receive forgivable loans through the Hardest Hit Fund Program — a free U.S. Treasury program administered in Tennessee by Tennessee Housing Development Agency (THDA). 

How much assistance is available?

The Hardest Hit Fund Program provides loans of up to $15,000 to cover mortgage expenses for up to 15 months ($20,000 and up to 18 months in some counties). These funds may be used to pay past-due, current and future monthly payments on mortgages and mortgage-related expenses such as property taxes, homeowner insurance and homeowner dues.

These "loans" are interest free and are forgiven at the rate of 20% a year. 

Program applications are handled by THDA partners, including my employer, The Woodbine Community Organization.

Am I eligible?

• The Hardest Hit Fund Program provides loans to underemployed (income reduced by 30% or more) or unemployed Tennesseans who, through no fault of their own, are unable to make mortgage payments and at risk of foreclosure.
• Homeowners previously unemployed or underemployed who are delinquent due to arrearages (overdue payments accumulated during such period) are also eligible for the Hardest Hit Fund Program.
• Borrower eligibility criteria for the Hardest Hit Fund Program include:
  • Applicants must provide a financial hardship affidavit
  • Unemployment or underemployment must be through no fault of their own
  • Unemployment of underemployment must have occurred after January 1, 2008
  • Principal, interest, taxes and insurance must be greater than 31% of household income after reduction of income
  • Borrower must have no more than six months of reserves to cover mortgage payments
  • Borrower’s income must be below $74,981
• Property eligibility criteria for the Hardest Hit Fund Program include:
  • Balance on house cannot exceed $226,100
  • House must be a Tennessee owner-occupied, primary residence
  • Houses are limited to existing single-family homes or condominiums or manufactured homes on foundations permanently affixed to real estate

How do I apply? 

Call Rod Williams at 615-850-3453