As a West Knoxville home buyer, you many have heard about THDA.
But, what exactly does THDA stand for? And, how can THDA help you purchase a West Knoxville home with no money down?
While many home buyers think THDA is a type of financing, the Tennessee Housing Development Agency is actually a lending institution. THDA’s Homeownership Programs offer assistance to first time West Knoxville home buyers to help cover initial down-payments and closing costs. And for some West Knoxville home buyers, they are able to purchase their first home no money down.
Tennessee Housing Development Agency offers two programs for West Knoxville home buyers, the Great Start and Great Advantage Mortgage Programs.
Here is a break down of what these programs offer first time home buyers with low or moderate income:
What the Program Offers: It gives 4% of the loan amount to the borrower as assistance for closing costs and the down-payment. All of the 4% grant must be used. The interest rate on this program is slightly higher than the Great Advantage Program.
Loan Term/Type: The mortgage must be a 30 year loan and can be an FHA, VA, USDA/RD or Conventional loan.
Maximum Household Income: For Knox County, for a 1-2 income household, the gross amount of combined income cannot exceed $67,839 and for a 3 or more income household the income can not be greater than $78,014.
Maximum Loan Amount: For Knox County, the loan cannot exceed $240,000.
[A full list of Tennessee counties can be found here.]
What the Program Offers: Its gives 2% of the loan amount to the borrower as assistance towards closing costs as the down-payment. All of the 2% grant must be used. It carries a slightly lower interest rate than the Great Start Program.
Loan Term/Type: Same as Great Start.
Maximum Household Income: Same as Great Start.
Maximum Loan Amount: Same as Great Start.
Theses grants are a great opportunity available to first time buyer who many not have enough of a down payment to put towards buying a home and they do not have to be paid back. All first time buyers who qualify for these loans must take a home buyer education class through an approved THDA educator.
Are you interested in buying a West Knoxville home using a THDA grant? I would love to assist you in any way that I can in your home search and would be more than happy to recommend a loan officer to help you through the process. Feel free to give me a call at 865-696-9002 or send an email to [email protected].