First Time Home Buyers

Most first-time homebuyers find it challenging to come up with their down payment and closing costs. This does not mean homeownership is unattainable, however, as there are many programs that provide loans or grants to help first-time buyers get a home. Even better, many of these programs do not require buyers to be low-income.

The following are popular first-time buyer programs that make it easier to afford a down payment and closing costs on your first home.

THDA Loan Programs

Great Choice and Great Choice Plus are home loans offered by the THDA. The Great Choice program works in conjunction with USDA, VAFHA, or uninsured conventional loans up to a value of 78 percent. The Great Choice loan is a 30-year, fixed-rate mortgage. The Great Choice loan is paired up with The Great Choice Plus loan which qives qualified buyers a second loan of either $6000 or $7000 depending on the purchase price. This second loan can be used to make the down payment or pay closing costs. There are certain income and credit history requirements a borrower needs to meet to obtain a Great Choice or Great Choice Plus loan option.

Great Choice Home Loan

This loan option offers down payment assistance to first-time homebuyers. Before closing on this loan, borrowers are required to take homebuyers-education courses. These courses familiarize them with the complicated process of taking out a THDA loan.

USDA Home Loan

Many areas qualify for a USDA loan, also known as a rural loan. You do not need to make a down payment, and the mortgage insurance is calculated at a lower rate than many other loan programs. The seller can also pay up to 6 percent of your purchase price toward closing costs. The property must be located in a targeted area, however, and your credit score must be at least 640.

Michael Hodges, Sr. Loan Officer
865-712-9489 Cell // 865-392-1439 Office
[email protected]
NMLS #1402604, TN #126872, MIG NMLS #34391

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