First-time homebuyers often have limited options and a number of obstacles to overcome when it comes to finding their very first home loan. The Tennessee Housing Development Agency (THDA) recognized this and created the Great Choice Home Loan. The Great Choice Home Loan is a fixed-rate, 30-year mortgage that allows borrowers to finance up to 96.5 percent of the purchase price of their home. Additionally, anyone who qualifies for the Great Choice Home Loan is automatically eligible for Great Choice Plus, the THDA’s down payment assistance program. Andrew O’Fee – The Yankee Closer offers great rates on Great Choice Home Loans to first-time homebuyers in Memphis.
The Great Choice Home Loan was created because the THDA realized, many first-time home buyers didn’t have the savings needed to make the down payment required for many mortgages. First-time homebuyers were also confused about the entire process of buying a home and had concerns with qualification and high-risk mortgages. Most Great Choice Home Loans are insured either by the FHA or USDA. This insurance allows first-time homebuyers to borrow up to 96.5% of the purchase price of the home being bought.
Taking Advantage of Great Choice Plus
If a buyer doesn’t have the savings to make the 3.5 percent down payment requirement, they can take advantage of the Great Choice Plus program. Great Choice Plus allows first-time homebuyers to borrow an additional 5 percent of the purchase price to cover the down payment and closing costs. This down payment assistance loan comes with no interest and no monthly payments and does not need to be repaid unless the borrower sells or refinances their loan. In some cases, the loan may be forgiven entirely, meaning no money needs to be paid back at all.
To be able to take advantage of the down payment assistance program, a homebuyer education course from a THDA-approved instructor must be completed. This course teaches homebuyers things such as choosing the right home, how to qualify for a home loan, and what how to be a responsible homeowner once a home is purchased.
To qualify for the Great Choice Home Loan:
- Borrowers must have a minimum credit score of 640.
- Total household income must be below the annual limit which will vary based on county and size of the household.
- The property cannot exceed the maximum purchase price of the county.
If you are a first-time homebuyer in Memphis or a surrounding Tennessee area, Andrew O’Fee – The Yankee Closer can help you find the home loan that best meets your needs. The Great Choice Home Loan from the THDA is a great option to help first-time homeowners navigate the often confusing process of purchasing their first home. For more information on Great Choice Home Loans in Memphis, contact Andrew O’Fee – The Yankee Closer today!