Nashville Mortgage News- LOW to NO Down Options- THDA Loans

Nashville Mortgage News- LOW to NO Down Options- THDA Loans

THDA loans (TN Housing Development Agency)  are designed for first-time buyers, or at least folks who haven’t owned a home in the last 3 years.   There are exceptions, however. For example, if you live in one of the 58 TN “targeted” counties, you don’t have to meet the above criteria.  But I’ll dive more into that in another post.  For now, just know that THDA is primarily reserved for people of low to moderate income who are buying their first home.  THDA utilizes the FHA program as the core loan and then sets its own subsidized or below-market rates, which are dependent on how much assistance you might need.  There are 3 basic loan types to choose from: Great Rate (0% assistance), Great Advantage (2% assistance), and Great Start ( 4% assistance- covers all of the 3.5% FHA down payment plus a little more towards closing costs).  The more assistance your receive, the higher the interest rate, but even the highest rate is still quite good.   Rates are set by THDA, and change only on a periodic basis, unlike all other mortgage types, which can change daily.  There are income and property limitations, so you’ll need to check with your THDA lender (including myself, of course) to find out the details.  I will discuss these in more detail in a future post as well, so please stay tuned.

This rounds out my preliminary posts in Nashville Mortgage News about the low-to-no downpayment loans still available in TN.  Please check back very soon for more in-depth analyses of these programs.