For many Knoxville first time home buyers, it can be stressful to find the money to put down on a Knoxville home. In the past, with the help of the Tennessee Housing Development Agency (THDA), first time home buyers were able to buy a home with no money down. While that is still possible, with the help of THDA, the program to buy a home with no money down has changed. Read on to find out more about what has changed.
In October of last year, THDA announced a new program called the Great Choice Program. Instead of offering grants as they did in the past to cover closing costs or a down payment, the Great Choice Program offers a second mortgage to cover any closing costs or a down payment. The second mortgage loan is 4% of the sales price and is paid back over ten years with a 0% interest rate. If the home is sold before the 10 years is up, the remaining balance can be paid off with the sale of the home.
In order to be eligible for the Great Choice Program, a first time home buyers must meet the basic qualifications to be eligible for a mortgage (typically an FHA mortgage). A buyer must be below certain income limits in order to qualify as well. In Knox County, a 1 to 2 person household cannot make more that $67,728 or for a 3 or more person household cannot make more than $77,887. Knoxville first time home buyers are also capped on the amount of money they can borrower. In Knox County, the maximum loan amount is $240,000. to see the maximum income limits and loan amounts, check out the chart on THDA’s website here.
For any Knoxville home buyer that would like to buy a home with no money down, the Great Choice Program is a great program to buy a home with no money down. It is one of the very few ways buyers can get into a home with very little out of pocket cost.
Are you thinking about buying a Knoxville Knoxville home this year? If there is anyway Knoxville Home Team can assist you, please let us know, you can give Rick at call at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected]. Also, be sure to check out our Knoxville Home Search Page to see what homes are for sale in the West Knoxville area.