THDA HOME LOANS. LETS DIG INTO IT.
If you’ve been thinking about buying a home in Tennessee but feel overwhelmed with everything from the amount of money needed to make that dream a reality, then let’s talk!
Discussing your current qualifying position while evaluating your credit, income, and expectations will set the tone and CONFIDENCE needed to secure your new home.
Through this article, Heather Frost from Studio Bank and I will break down in more depth, how partnering with us to learn the facets of THDA, would be time well spent. This knowledge and support is at NO COST TO YOU!
2618 Woodyhill Dr, East Nashville, TN - 2 Bed, 1 Bath - $359,900
WHO Qualifies for the THDA Loan Options?
Buyers with a minimum credit score of 640. Regardless of your score, the interest rate is the same across the board and its very competitive.
1 to 2 person families earning a maximum of $139,320 for Davidson and $162,540 for families of 3 or more. (The maximums are different in more rural areas).
43 Targeted counties in Tennessee qualify for the waiver of the borrower to be a “First Time Homebuyer”
Heroes: If you are an active-duty military, National Guard, a veteran, a state or local law enforcement official, first responder, firefighter, EMT or paramedic, or a full-time K-12 classroom teacher, you may qualify for a .5% interest rate deduction. This is HUGE.
WHAT are the THDA Mortgage Programs?
The Great Choice Home Loan: The flagship 30-year fixed rate mortgage, requiring a minimum of 640 credit score. This option requires a household income that falls within the specified limits for the borrower’s county according to the THDA website.
Homeownership for Heroes: The .5% discount on interest rate.
Freddie Mac HFA Advantage: The first-time homebuyer restriction is completely waived. You can use this loan to purchase and owner-occupy a 1–4-unit multifamily residence. Interest rate is a little higher. Private Mortgage Insurance (PMI) is lower.
Max purchase price is $500,000 as capped by the THDA.
2618 Woodyhill Dr, East Nashville, TN - 2 Bed, 1 Bath - $359,900
WHY use THDA Mortgage Programs?
The Low Interest Rates. The interest rates are the same across the board no matter where your credit score stands. If you have a 640-credit score, and are using the THDA Loan product, you would be able to enjoy the same competitive rate as someone with an 800-credit score.
Great Choice Plus. This is a Down Payment Assistance (DPA) program. The Great Choice Plus offers a flat $6,000 or $10,000 depending on what county you buy your home in. This second-lien is 0% interest rate and $0 monthly payments, but you must live in the home for 10 years. This money can be used toward your down payment or closing costs. Note: If you sell the home, transfer the deed or refinance your primary mortgage before the 10-year term is up, you may pay the full amount back to the state from your sale proceeds. The other option is the amortized option, which allows for 5% of the home’s purchase price (capped at a maximum of $15,000) which may be used towards downpayment or closing costs. This option can get you more upfront cash but is charged monthly interest at the same rate as your loan.
Find out if you may be a good candidate for a THDA Loan. Book a Zoom call with Heather Frost from Studio Bank and myself HERE
For questions or comments about buying, selling, or investing in Nashville Real Estate, email me at [email protected] OR book yourself into a FREE Homebuyer Class with me and a professional mortgage lender HERE
A Note For Nashville First-Time Homebuyers
Searching for and purchasing your first home should be an exciting experience.
With the right mindset, a solid understanding of the process, and a team of trusted professionals beside you, buying your first home doesn't have to feel intimidating.
That's exactly why The Nashville Homebuyers Club exists.
Our mission is simple: to help Nashville's homebuyers feel informed, confident, and supported every step of the way.
If you're ready to begin your journey, we'd love to have you join us.
Download the Nashville First-Time Homebuyer Blueprint, attend a Homebuying Class and become part of The Nashville Homebuyers Club to receive weekly information on Nashville home buying and the Nashville real estate market.
