The Ole South Blog

The Ole South Blog: More great news for first time home buyers!

Categories: Interest Rates and Financial Information, New Homes for the First-Time Buyer, Time to Buy | Posted: December 3, 2011

A “First Time Buyer” can purchase a new Ole South home up to $275,000 without having a down payment!*

First, let’s define the term “first time buyer.”   Common sense says a first time buyer is someone that has not purchased a home before.  That is true, but you can still be a first time buyer even if you have owned a home before. 

In Tennessee, a “first time buyer” is one that has not owned a principal residence in the previous three years.   If you haven’t owned a home in the past three years, you can be classified as a first time buyer!  If you are purchasing in Maury County, the first time buyer requirement is waived altogether!

So, how can you buy a new Ole South home up to $275,000 without a down payment?

Very simple.  By using the THDA Great Start home buyer program, the State of Tennessee grants you the money for your FHA required down payment.  The current fixed interest rate for this program is 4.55%.

What’s the catch?  There is no catch.  But there are a few eligiblity requirements: 

Household Income Limit$79,440 for 1-2 person household,  3+ is $92,680  (for Davidson, Rutherford, Williamson, Maury Counties – Clarksville/Montgomery County limits are $64,200 & $74,900)

Purchase Price Limit – $275,000 (for Davidson, Rutherford, Williamson, Maury Counties – In Clarksville/Montgomery County, the Acquisition limit is $240,000.)

Click here for the Income and Acquisition limits for all Tennessee counties.

Debt RatioTotal payments on all debt, including new home payment, cannot exceed 45% of Gross Income.  Example:  If you make $25,000 per year, your total annual installment debt payments (car, credit card minimums, loans, and new home) cannot exceed $11,250 (45% of $25,000).  If the new home will be your only installment debt, you can qualify for a $937 monthly mortgage payment.   (Ole South also has new homes in this price range.)

THDA offers many great homeownership programs.  Please visit for more information.

To learn more about the perfect home mortgage for your needs, please contact Chris Meagher (615.504.5976) or David Prince (615.351.7908) our First Community Mortgage specialists. 


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