Nashville Mortgage: Getting a down payment is easier than you think. Can you say $8,000 tax credit?

May 5, 2009 · Print This Article

Among the biggest reasons holding most people back in the Nashville area from getting a new home mortgage is the down payment. First-time homebuyers are eligible for the new tax credit of $8,000 and mostly all home buyers are eligible for a Federal Housing Administration backed mortgage, Nashville home buyers have many options. You could possible move into your new home in 30 to 45 days.

In 2008 Down Payment Assistance (DPA’s) companies became a thing of the past. There are only a few programs that I am aware of that will allow for a true 100% No Down Payment Loan. One being a USDA Rural Development loan and another being a VA Loan. I am eligible to do both of these mortgages. The biggest challenge for most people with these two mortgage loans are, you either have to be a military veteran or your new home needs to be in a rural area. Well if you are not a veteran and maybe over 200 years ago we could have called Nashville rural, your options are limited.

What options do you have?

Why not borrower the money from a family member? While it can’t be a requirement of a new Nashville mortgage, qualified first time homebuyers can borrow the money from their parents or any other family member and repay it with the $8,000 tax credit. You can do this with an FHA Loan and the minimum down payment would be 3.5% of the loan amount.

FHA allows family members to contribute 100% of the entire amount of cash needed to move into a new home, even the down payment. If we can have the seller to contribute some money towards closing cost, you may only have to pay for an appraisal and a home inspection for your new Nashville home. Getting your new mortgage approved will be the only thing left. To me, this is the closet thing to a true 100% No Down Payment loan.

I go can go on and on about the guidelines for your new Nashville mortgage but with all of the changes and the limited time that I have to write about this, it would be best to contact me for more details. Give a call today at 615-942-2210 to discus how we can get you into a new home in 30 to 45 days.

Written by Terrence Askew