18th April 2024

THDA Loans Lifting Homeowner Hopes

The dream of many is the day they buy their own home. The title, the benefits, and the joy of homeownership are numerous, and it is just part of the American dream. Like many hopes and dreams, however, getting there can be a long and difficult road.

It can even, at times, feel impossible but with the right help and the right loan, it isn’t. In fact, with loans like ones offered by the THDA (Tennessee Housing Development Authority), hopes and dreams are being realized by people just like you.

For most of us, a home is the most expensive purchase we will ever make and the greatest investment we will ever make. Most of us, also, don’t have a small fortune in our bank account or an endless source of funds.

That means we all need a little help, especially those who are buying their first home. That help can come in a variety of forms and places. These are three of the most common and helpful resources people rely on when buying a home.

The THDA Loan

Since 1973 the THDA has been helping low to medium-income families become homeowners. Established with the goal of making homeownership a reality for the people of Tennessee, the THDA administers many federal and state housing programs.

In addition to helping families obtain affordable home loans, the THDA believes in and supports consumer education. This is evidenced by their requirement that all homebuyers complete a homebuyer education course. THDA loans have fixed rate terms of 30 years, with a maximum grant allowance of 5 percent in down-payment assistance.

The FHA Loan

The Federal Housing Authority (FHA) offers loans to assist homebuyers in the purchase of a new home. Much like the aforementioned THDA Loan, these loans are designed to aid low to moderate-income families.

The structure of FHA loans makes them popular among first-time homebuyers as the qualifications flex with and according to your credit scores. The ability to borrow up to 96.5 percent of the home value (as of the latest updates) also make it popular.

The USDA Loan

The loans offered from the United States Department of Agriculture (USDA) may not be as common or familiar, but they may be easier to qualify for than you might think. In part, that is because these loans are aimed to help eligible rural and suburban homebuyers with the purchase or improvement of a home.

That makes these types of loans a good match for many Tennessee residents and the zero down payment plan makes them desirable too.

While the USDA loan isn’t as well-known as other types of government loans, they are structured to aid low and very low-income families with home buying assistance which makes them an option worth investigating for qualified buyers.

Congratulations on your decision to begin the home buying process and on the decision to become a homeowner. This is more than about buying a house, this is about investing in a place you will call home for a long time to come and there is plenty of help to make your dreams a reality.