Home Ownership Programs
Money issues often stand in the way of homeownership. A survey by rental service Apartment List found that 80 percent of millennial renters want to buy a home, but most say they can’t afford to.
What you may not realize is that many first-time homebuyer programs and grants offer financial help, and you may be eligible for various types of assistance.
Here are four first-time homebuyer programs and grants designed to help you land a great mortgage and get a place of your own and the best part is, most of these are available here in Clarksville TN.
There are other programs such as Native American Direct Loan, FHA Section 203(k), Energy-efficient mortgage (EEM), Fannie Mae HomePath and Local Grants/Programs but we will focus on the ones used most around the Clarksville TN area.
The most common Home Ownership Programs in Clarksville TN
1. FHA loan
In an FHA loan, the Federal Housing Administration insures the mortgage. The FHA is an agency within the U.S. Department of Housing and Urban Development (HUD).
The FHA’s backing offers lenders a layer of protection, meaning that your lender won’t experience a loss if you default on the mortgage.
FHA loans typically come with competitive interest rates, smaller down payments and lower closing costs than conventional loans.
If you have a credit score of 580 or higher, you could be eligible for a mortgage with a down payment as low as 3.5 percent of the purchase price. If your credit score is lower than 580, you still might qualify for an FHA mortgage, but the down payment would be at least 10 percent of the purchase amount.
2. USDA loan
While not well known, the U.S. Department of Agriculture (USDA) has a homebuyer assistance program.
While the program focuses on homes in certain rural areas, you don’t need to buy or run a farm to be eligible.
The USDA guarantees the home loan. There may be no down payment required, and the loan payments are fixed.
Applicants with a credit score of 640 or higher typically get streamlined processing. With a credit score below 640, you still can qualify for a USDA loan, but the lender will ask for extra documentation about your payment history.
Keep in mind that there are income limitations, which can vary by region.
3. VA loan
The U.S. Department of Veterans Affairs (VA) helps active-duty military members, veterans, and surviving spouses buy homes.
The VA guarantees part of the loan, making it possible for lenders to offer some special features. VA loans come with competitive interest rates and require no down payment. You aren’t required to pay for private mortgage insurance (PMI), and a minimum credit score isn’t needed for eligibility.
If it becomes difficult to make payments on the mortgage, the VA can negotiate with the lender on your behalf.
4. Good Neighbor Next Door
The Good Neighbor Next Door program, sponsored by HUD, provides housing aid for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers.
Through this program, you can receive a discount of 50 percent on a home’s listed price in regions known as “revitalization areas.”
Using the program’s website, you can search for properties available in your state. You must commit to living in the home for at least 36 months.
Contact your local Realtor or Loan Officer and ask about what is available in your area and if you qualify.
Home Ownership Programs in Clarksville TN
Coldwell Banker CM&H
111 S. Riverside Dr.
Clarksville TN 37040
Each Coldwell Banker office is independently owned and operated
Home Ownership Programs