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Pinnacle Down Payment Assistance Program

Pinnacle Financial Partners (Honorable Mention) - Nashville, Tennessee

2020 Community Commitment Awards Submission

  • Entry Category: Affordable Housing
  • Asset Size: Medium

Since Pinnacle was formed in 2000, the firm has had as part of its mission “To make a significant positive impact on the community.” The firm decided early on to place an emphasis on Affordable Housing as a key focus of its community initiatives. Pinnacle has committed meaningful resources to help increase the number and breadth of affordable homes in its markets and wanted to address another significant impediment to home ownership by low- to moderate-income earners: upfront costs. In 2019 we launched our Down Payment Assistance Program (DPA) in two of our largest markets - Nashville and Memphis, Tennessee. The DPA pays up to $10,000 (or 10% of the loan amount up to $10,000), to qualified buyers who are purchasing a home in a majority minority census tract. The program also covers all closing costs on the buyer's behalf. A key component of the program is partnerships with Community Development Financial Institutions (CDFIs), who handle processing and closing on the loans, which Pinnacle services for them at no cost to the CDFI. We eventually buy the loans back. Pinnacle pays the participating CDFI a flat $500 fee at closing, which increases the community partner's revenues with every closed loan. In its first 11 months, the DPA program helped 425 families make homeownership a reality by helping them overcome the challenge of upfront costs.