About 3 East Tomorrow
About The Program
The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities. 3East Tomorrow is the redevelopment of three of Chattanooga’s most historic neighborhoods – Bushtown, Glenwood, and Orchard Knob – all of which are just east of downtown.
The NSP Down Payment Assistance Program provides funding to eligible homebuyers for purchase of homes built or rehabilitated by 3East Tomorrow. Assistance will be used for closing costs and the down payment associated with the purchase of a home.
Amount of Assistance Available
Homebuyers in 3East Tomorrow receive a minimum of $15,000 in home purchase assistance in the form of a forgivable, zero interest loan to qualified applicants.
Homes are built according to Chattanooga’s Good Home Index, which means lower utility costs for homeowners and reduced environmental impact.
The NSP program is open to anyone who qualifies for a first mortgage loan from the lender of their choice. Applicants must also meet NSP program qualifications, including maximum household income of 120% of the Area Median Income (AMI), based on household size. Households earning 80% or less of AMI may qualify for additional down payment assistance. See maximum income chart below.
|Household Size||80% AMI||120 % AMI|
Need More Info?
For more detailed information about the NSP program and to view eligible properties visit www.cneinc.org. Or, call the CNE Homeownership Center at 423-664-HOME (4663).
What factors are used in determining how much down payment assistance I qualify for?
The amount of affordability assistance depends on each individual’s situation. The following factors are considered in determining the amount of assistance:
- Borrower’s Gross Income
- Sales Price of NSP Property
- Current Debt
- Anticipated Mortgage Payment
Who determines how much down payment assistance I qualify for?
The first thing to do is contact CNE if you are interested in a NSP property. CNE will analyze your specific situation and then inform you of the amount you qualify for. Pertinent documentation is required by CNE prior to performing your affordability assessment. Call CNE at (423) 664-HOME (4663).
What does CNE need from me to determine how much down payment assistance I qualify for?
Documentation may vary depending on each individual situation. Typical documentation required may be:
- Names and Documentation of Income for All Residents
- 2 Most Recent Paystubs
- Documentation of Other Type Income, Such As: Child Support, Alimony, Social Security, Pension, Disability, Etc…
- Most Recent Tax Return (All Schedules and W-2s/1099s)
- 2 Most Recent Bank Statements
- If Self Employed:
- 2 Most Recent Federal Income Tax Returns (All Schedules)
- Year-To-Date Estimated Profit & Loss
Everyone’s situation is different. This is why CNE has a designated representative to help you throughout the qualifying process. CNE is dedicated to make this process as simple and painless as possible!
After I find out how much down payment assistance I qualify for, what is next?
Your next step would be to call a mortgage lender or a bank to get pre-approved for a first mortgage loan. Make sure to let CNE’s NSP representative know the contact information for your lender. We will communicate any necessary information to your first mortgage lender about your NSP down payment assistance. This is another way to keep your experience smooth and painless.
So now that I have my first mortgage pre-approval and my down payment assistance secured, what’s next?
Now the excitement begins! At this point you will want to contact your realtor to write a purchase contract.
Click here to download the NSP FAQ Sheet.