The Tennessee Housing Development Agency is working to help first-time home buyers by increasing the amount they can receive as a down payment.
“We wanted to meet that need a bit at a time when supply is tight and prices are rising,” said Ralph Perrey, executive director of THDA.
Homebuyers who qualify for a Great Choice home loan through ADHD can apply for down payments and closing costs. Those seeking help through THDA have two options: a second mortgage for $ 6,000 with no interest and deferred payments for 30 years, or a second mortgage at 6% of the sale price of the home. with the same interest rate as the first mortgage and monthly payments for 15 years.
Since the increase in the amount of down payment assistance went into effect in mid-September, Perrey said the agency has seen an increase in the number of loans granted.
“We’ve found that since we implemented this in mid-September, we’ve actually seen a modest increase in our loan production,” Perrey said. “So we think it’s encouraging, and we think it will be helpful especially for first-time homebuyers and that’s the main focus in trying to do it.”
Perrey also said that many people don’t even realize they qualify for down payment assistance.
“We help a lot of low-income people with a variety of housing projects, but the mortgage program is not an anti-poverty program,” Perrey said. “We assume that you have sufficient income that buying a house makes sense to you on an economic basis. “
In Washington County, a one- or two-person household may qualify with an annual family income of up to $ 71,389. A household of three or more may qualify with an annual household income of up to $ 82,097.
To be eligible for down payment assistance, potential buyers must complete an online or in-person training course from an THDA-approved instructor.
For more information on ADHD or down payment assistance, visit www.greatchoicetn.com.
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