Another important step when considering if you are ready to buy a home is…

How much money do I need for a down payment and closing costs when I buy a home in Knoxville TN?

IStockphoto – kroach

Jackie Mayo – blog contributor

This is an important question to ask because most loans will require you to contribute a down payment in order to purchase a home.  There are some first-time homebuyer down payment programs to assist people who meet the income eligibility requirements.  One such program is through Tennessee Housing Development Agency (THDA). THDA has a program that will allow a second mortgage down payment of up to 5% of the purchase price.  This is a great option for a buyer who doesn’t have the funds saved up for a down payment and closing costs which can run 4-6% of the purchase price of a home.

Facts about the THDA Great Choice loan:

  • Must be a first-time homebuyer and fall within the income eligibility requirements.  Some exceptions apply to the first-time homebuyer status.
  • Must originate a THDA Great Choice first mortgage through a THDA loan originator.
  • Loan can be up to 5% of the purchase price of the home and can go towards down payment and closing costs.
  • The loan is a second mortgage and will have a lien on your property.
  • The loan is at 0% and has no repayment until you decide to sell, move out of (it must be your primary residence at all times) or refinance the loan.
  • You must take a homebuyer education course either in person or online from one of THDA’s approved instructors – our partner agency, HomeSource east tennessee, offers this course at https://homesourcetn.neighborworkscompass.org/

You can learn more about this loan option by checking out the information on THDA’s website https://thda.org/homebuyers/down-payment-assistance.

This is one example of a resource to help you become a homeowner.  Our agents are familiar with other resources that may be of assistance to you when buying your home.  We can explain different options that are available.  Your dream of homeownership may be closer than you think!

Let one of our agents assist you in achieving your dream of homeownership and help you on your path to homeownership.  Call Monica at 865-661-7790 or Jackie at 865-300-6296 today to find out more.