“Downpayment Assistance” is still alive and well in Tennessee for today’s first time homebuyers! Not everyone knows how the program works, but we at Ole South can show you how exactly to take advantage of it.
In October of 2008, Seller Funded Down-Payment Assistance Programs were outlawed. Before, the seller of a home could simply give the buyer the downpayment funds that FHA required for the loan. OK, not exactly that simple…the money had to be funneled through a non-profit organization, who in turn charged a minimal fee.
Fast forward to 2012. FHA loans require a minimum down payment of 3.5% of the purchase price of the home, without exception. A seller can no longer give the home buyer these funds, but the government can!
Yes, the State of Tennessee will grant (give) a first time buyer the necessary down payment for an FHA loan, plus a few extra bucks for other fees you may incur! Using the THDA Great Start program, the home buyer receives a 4% grant. That’s $11,000 for a $275,000 new home purchase!
In Middle Tennessee counties surrounding Nashville, the purchase price limit for this program is $275,000. Households of 1-2 persons must have annual income not exceeding $79,440. For households of 3 or more, annual household income cannot exceed $92,680.
Maury County is an exception with $70,320 and $82,040 respectively. Maury County also has another exception – you do not have to be a first time home buyer to take advantage of the program!
Click Here for a list of income and purchase limitations for all Tennessee counties.
Until just recently, home ownership was out of reach for many. Recent economic times have brought interest rates and home prices drastically lower, bringing home ownership within the reach of many more people. Home affordability is at a peak. Right now.
If you do not currently own a home, you need to ask yourself “why not?” After all, when you rent, you really are paying for someone else’s property. Why not explore paying for your own?
With the State of Tennessee paying your down payment, and Ole South paying your closing costs when you finance through First Community Mortgage, you really can move into a brand new Ole South home with no cash out of pocket at closing.
For more information, visit any Ole South model home, e-mail firstname.lastname@example.org , or contact David Prince or Chris Meagher at First Community Mortgage, 615.896.1489.