First Time Home Buyer? Hip Hip Hooray For Thda!
In order to promote the production of more affordable new housing units for very low low and moderate income individuals and families in the state to promote the preservation and rehabilitation of existing housing units for such persons and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing unitshellip;
Many times people have heard of THDA and are confused thinking that THDA is a certain loan type. In fact its lending agency. All THDA mortgages must be insured by private mortgage insurance FHA VA or RECD And as these loans are intended for low to moderate income families or individuals there is a income limit and acquisition cost limit. Also you must be a first time homebuyer unless your home is in a targeted area.
Why is THDA so fantastic for a first time homebuyer? Well it comes down to money. THDA offers a below market rate and will allow up to 100 financing. Have you been reading the papers lately? Its not so easy to find 100 financing these days. Unless that is youre a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies if your loan type requires a down payment. If you have satisfactory credit and the home you wish to buy meets THDAs standards then youre in business.
All THDA mortgages are 30 year fixed rate loans so you neednt worry about finding yourself with an ARM loan adjustable rate mortgage and a new payment you cant afford in 3 years. And THDA allows lenders to only charge customers a standard 1 origination and .25 discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan you can feel pretty certain that an unscrupulous lender cant take advantage of you because THDA wont let them. For so many people buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.
If you do apply for a THDA loan be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more THDA asks for more ndash; ensuring you qualify for its pretty awesome program. Sounds like a fair trade if you ask me.
What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. Ive heard that only about 1 of THDA customers actually pay this tax. Thats because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you paying the recapture tax wont matter much to you anyway. Ive been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again good things have to happen to pay the recapture tax. So you shouldnt be afraid of it.
More people need to hear about and take advantage of the THDA loan programs. Its such a great product and really helps the community and the housing industry. If youre a first time homebuyer or think youre in a targeted area make sure you ask about THDA to see if you would qualify for a loan. You wont regret it!
About the writer:nbsp;nbsp;Let my experience work for you! Email your home loan financing questions to Kristin Abouelata Home Loan Specialist at questionkristinmortgage.com or call 865 5670113. Kristin will try to answer all questions on her website Home Loans Plain Talk.
Kristin Abouelata
Mortgage Specialist
Let my experience work for you!
Knoxville TN 37919
Phone: 8655670113
www.kristinmortgage.com
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