Do you qualify for a No Money Down Home Loan in Tennessee?

May 20, 2009 · Print This Article

Contrary to popular belief, No Money Down Home Loans in Tennessee are still available in Tennessee. A year or so ago Down Payment Assistance programs were shut down. It allowed for someone to receive a gift that would be used for a down payment on a new home. This “gift” didn’t have to be repaid by the buyer. As you can imagine, when these programs were discontinued, it left a huge void for honest, hard working, and credit worthy individuals to seek assistance in buying a home. In this article I would like to talk about two No Money Down Home Loan programs in TN. One deals with the $8000 First Time Homebuyer Tax Credit and the second deals with home loans in rural areas throughout Tennessee.

Rural Development Loans In Tennessee

A Rural Development Loans in Tennessee will allow for a mortgage of up to 102% of the asking price of a new home. This is the true no money down home loan for Tennessee homebuyers. This loan doesn’t require Private Mortgage Insurance (PMI). It does however have an upfront mortgage insurance premium that will be applied to the loan (your loan amount will increase by 2% to cover the cost of the insurance). You will have to qualify based on income for this program. Lastly, these programs are primarily used for homes that are for sale not in the city limits. Mostly rural areas. Give me a call to find out if the area you are looking to move into qualifies for this program.

$8000 First Time Homebuyer Tax Credit Used to Pay Back a Second Mortgage

A homeownership organization here in TN has announced a program that will allow a person to use the $8000 First Time Homebuyer Tax Credit for a downpayment on a new house. You could use this program in conjunction with a FHA Loan. Instead of coming up with a 3.5% downpayment, you can apply for a second mortgage for this amount. For example, if the new home you are looking to buy is for $200,000, the minimum downpayment would be $7,000. You would either have to pay this out of pocket or get a gift from a family member. If you don’t have either, this second mortgage could step in to make this downpayment. All you would need to do is pay the second mortgage back when you receive your Tax Credit.

This article only touches the surface on how to get No Money Down Home Loans in Tennessee. Since everyone’s situation is unique, it would probably best to contact me for more details about these programs. Also, go to my website to pre-qualify for your new home. This will give you a good starting point in your search. My number is 615-942-2210.

You could be possibly moving into that new home in as little as 30 days!

Written by Terrence Askew