The idea of purchasing your first home is exciting, but can also feel overwhelming.  Before starting your home search, you need to figure out how much you can afford.  If you’ve been hesitant to move forward because you’re afraid you won’t have enough cash for a down payment or that you won’t qualify for a loan, you shouldn’t despair.  There are programs available that can help you!  So, stop padding your landlord’s pockets and take advantage of programs that will assist you in making a sound financial investment in a home of your own.

The Tennessee Housing Development Agency  has two programs designed to assist people with down payment assistance once they have qualified for a Great Choice Home Loan:

  1. Great Choice Plus Loan - Anywhere in Tennessee, all homebuyers who qualify for a Great Choice Home Loan can also apply for down payment assistance in the form of a Great Choice Plus second loan worth a maximum of 5% of the home’s purchase price.  The beauty of this program is that this loan has no monthly payments and no interest for as long as you own and live in your home.  You won’t have to pay back any of it unless you move out, sell or refinance. If you do move out, sell or refinance, you will only have to pay back exactly what you borrowed.
     
  2. HHF-DPA -  If you are purchasing a home with a Great Choice Home Loan in one of the Participating Zip Codes, you can apply for the HHF-DPA program, which offers $15,000 in down payment assistance.  If you’re approved, your financial assistance comes in the form of a forgivable $15,000 second mortgage loan on your home.  This second mortgage has a 0% interest rate a defers monthly payments for a ten- year term.  The loan is forgiven at 20% per year in years 6-10.  If you do not sell, refinance or move out in that ten-year period, you will get full loan forgiveness.  This loan is only available on purchases of existing homes (no new construction) and again, only available to homes purchased in participating zip codes. 

    You must complete a THDA Homebuyer Education Course to participate in these programs.

If you are in the market to buy or sell a home in the Memphis area, contact professional Realtor, Melissa Thompson and let her help you with all your real estate needs. Give her a call at 901-729-9526 today!