Buy A West Knoxville Home With No Money Down
For many West Knoxville first time home buyers, one source of stress or hesitation about buying a home comes from finding the the money for a down payment. What many first time home buyers do not know is that is it in fact possible to buy a home with little or no money down, with the THDA grant. If the only thing holding your back from buying a Knoxville home is the down payment, here is how to buy a West Knoxville home with no money down.
One option that first time home buyers have to buy a home with no money down is through THDA [Tennessee Housing Development Agency]. Through THDA’s Homeownership Programs, first time home buyers receive assistance to help cover initial down-payments or closing costs. THDA has two programs available, the Great Start Program and the Great Advantage Program. The great thing about THDA grants is that they never have to be paid back and the only requirement is that buyers attend a home buyer education class.
Here’s a breakdown of what each grant program offers:
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.
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.
[A full list of income levels and loan amounts for all Tennessee counties can be found here.]
In order to qualify to buy a house with no money down with the help of a THDA grant, you must be considered a “first time home buyer.” THDA defines this as someone who has not owned a home as their principal residence for more than three years. THDA will waive this requirement if a buyer finds a home in a “targeted” area.
Are you thinking about buying a West Knoxville home this year? Would you like to hear more about how to buy a West Knoxville home with no money down? If so, please give Knoxville Home Team a call today. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com.