If you’re a resident of Tennessee, you may be eligible for the THDA loan. A mortgage for moderate-income buyers, there are certain requirements that must be met.
These are the things you should know:
- For first-time homebuyers unless property is in a county or census tract within a county designated as a target area
- Home must be the principal residence
- Cannot be purchased for investment property, second home or a business
- Income cannot exceed certain limits based on size of household and county where property is located
- Must be insured or guaranteed by VA, FHA, RD or an acceptable private mortgage insurance company for conventional loans with a loan to value ration greater than 78%
- Mortgages are for 30-year terms at fixed rates
- Requires minimum investment by the borrower
- Borrower must have minimum reserves
What is the first-time homebuyer rule?
An applicant (or spouse if married) cannot have had an ownership interest in their principal residence within the three years prior to the date of application.
This does not apply if the property to be acquired under the THDA loan is within a targeted area or may have leeway if a veteran.
The applicant may have an ordinary lease with or without an option to buy; a manufactured home without ownership of the land on which it is located; an ownership in a vacation home or rental property; a financial interest in a residence in which the applicant has not resided for the last three years.
The option may be able to assist you in purchasing a home.