Some people are tired of bustling urban life and look forward to moving to a place with a more peaceful pace.
Tranquility and peace prompted people to move from crowded states like New York and California to Tennessee. With its vibrant country music scene and the energy of downtown Nashville, Tennessee has been attracting new residents. Not only major cities but also smaller places like Knoxville, Bristol, and Johnson City are experiencing growth. Additionally, Tennessee offers lower property taxes and lower or no state income taxes. It's no wonder many are choosing to make Tennessee their new home. If you're a first-time homebuyer exploring your options in the state, Loan Factory is here to help you find the perfect first-time home buyer loan in Tennessee.
First Time Home Buyer Loan in Tennessee
If you're a first time home buyer in Tennessee, the Tennessee Housing Development Agency (THDA) can help make your move more affordable. THDA partners with various banks, credit unions, and mortgage lenders to help you achieve homeownership.
1. THDA Great Choice Home Loan
The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan program for both first-time and repeat homebuyers. This program can apply to a conventional, FHA, VA, or USDA loan, offering 30-year loans with fixed interest rates that vary based on the market and mortgage lender.
- Provide a 3% down payment for a GC97 conventional loan; a 3.5% down payment for an FHA or USDA loan (with available down payment assistance); no down payment necessary for VA or USDA loans
- Maintain a minimum credit score of 640
- Complete a homebuyer education course
- Comply with THDA income limits, which vary by county and household size
- Follow THDA purchase price limits, which differ across the state
2. THDA Homeownership for Heroes
The Homeownership for Heroes program offers a special benefit to those who serve their community or country by lowering the mortgage interest rate by half a percentage point. You don't have to be a first-time homebuyer to take advantage of this program, but you must take a homebuyer education course to be eligible. You’ll also need a minimum credit score of 640 and meet the income and purchase price limits of the Great Choice program.
- Active-duty military personnel, National Guard, veterans
- State and local law enforcement officers
- EMTs/paramedics
- Firefighters
3. Programs Assistance In Tennessee
- THDA Great Choice Plus
If you're applying for a Great Choice Loan through the THDA and need help covering the down payment and closing costs, Great Choice Plus is designed to ease that financial stress. The assistance comes in two options:
- 6% of the purchase price as a 15-year loan with monthly payments
- Up to $6,000 loan with payment deferred until you sell, refinance, or pay off the original mortgage
- Chattanooga Neighborhood Enterprise
The Chattanooga Neighborhood Enterprise provides loans and down payment assistance for first-time homebuyers in Chattanooga. Qualified buyers can receive up to $15,000 in assistance, which is a second loan with an interest rate matching the first mortgage, but at least 3%. This assistance is available in Bledsoe, Bradley, Marion, Grundy, Hamilton, McMinn, Meigs, Polk, Rhea, and Sequatchie counties.
- Memphis Down Payment Assistance
In Memphis, some first-time homebuyers can receive up to $25,000 in down payment assistance from the city, depending on available funds. To qualify, your income must be 80% or less of the median income, and the home must be within the set purchase price limits.
→ Read more: First-Time Home buyer Checklist
Loan Factory's Unique Approach
- Comprehensive Support
At Loan Factory, we understand that every homebuyer's journey is unique. That's why we offer comprehensive support tailored to your specific needs. From the initial consultation to closing, our team is dedicated to providing you with the best possible experience.
- Innovative Technology
We leverage the latest technology to simplify the mortgage process. Our user-friendly online platform allows you to apply for a first time home buyer loan in Tennessee from the comfort of your home. Track your application status in real time and receive updates directly to your device.
→ Read more: how to qualify for a home loan first-time buyer
- Local Expertise
With extensive knowledge of the Tennessee real estate market, our local experts are well-equipped to help you navigate the complexities of buying a home. We provide insights and advice that are specific to your area, ensuring you make informed decisions.
Start Your Homebuying Journey with Loan Factory
Are you ready to purchase your first home in Tennessee? Loan Factory is here to support you. Our team is ready to assist you every step of the way. Reach out to us at (714) 444-9999 or visit our website at www.LoanFactory.com for more information on your options. Our team of experts is dedicated to helping you find the perfect first time home buyer loan in Tennessee to turn your homeownership dreams into reality. Let Loan Factory guide you through the process and unlock the door to your new home in Tennessee!
