I am a first time home buyer. Can I get a loan?
With much news recently about shady lending practices and banks being tight with their money, most buyers feel that it will be impossible to get funding. The good news is with decent credit (minimum 640 credit score) there are many programs out there that will help a first time homebuyer in Memphis TN area with your down payment and closing costs.
Here are a few examples of First Time Homebuyer Programs available in TN and MS:
TN Housing Development Agency Programs (considers someone a first time buyer if they have not owned a home in 3 years.)
The Great Choice Loan Program offers 30-year, fixed rate mortgages to qualified first-time, repeat and military veteran home buyers. Great Choice is used in conjunction with FHA, VA, USDA-RD and uninsured conventional loans. Borrowers must meet the minimum qualifications: satisfactory credit history, income that does not exceed the maximum income limits and a home whose purchase price does not exceed the maximum acquisition price limits. Additionally, all Great Choice Plus and Home ownership for the Brave home buyers must participate in a THDA-approved home buyer education course. THDA currently requires a 640 minimum FICO credit score. Income limits for Shelby Co. TN are $68,482 for 1-2 persons, $71, 854 for 3 or more persons. You must make less than this gross amount per year to qualify for this program.
100% no down payment loans are available in certain rural areas including areas of DeSoto & Fayette Counties. Income limits apply.
- VA Loan
Veterans are eligible for 100% Loan on homes up to $417,000. Non-veterans are eligible to get a 100% loan on a VA foreclosures. You do not have to be a first time buyer to qualify and may qualify for more than one loan through VA. Buyers who work at NSA Mid South find this is a great option and it is very inexpensive to buy a home in this area compared to other military sites.
- HUD Homes
HUD often has buyer incentives combined with a program that allows you to finance the cost of repairs. HUD can pay the closing costs for you. They also have special programs for police officers, teachers, and firemen. In some cases you may be able to buy a home for only $500
- MS Home Corporation
30 year fixed rate mortgage with competitive interest rates and additional add on down payment assistance options of either 3% or 4%. MS Home Payment Plus offers Grant funds up to $25,000 to assist a buyer with down payment and closing costs on a 30 year fixed rate.
This is a sampling of some of the help available for first time home buyers in the Memphis, TN area.
Bottom line–with your good credit and a steady income you can buy a home.
If you are a first time home buyer in Memphis TN and have any questions please contact me today for a free consultation. I will help you find the right program for your situation and ultimately the right home for you.