For many borrowers, particularly first-time buyers, the down payment and cash for closing costs is the greatest obstacle to buying a home. If you are having trouble coming up with the money for your down payment, you may have many options available. There are many local programs that provide down payment grants, as well as down payment assistance loans to give you a forgivable, second loan that may even cover your closing costs.
Do not assume that you must be low-income to qualify! There are many types of programs, and borrowers earning up to 120 percent of the median income of the area may qualify for assistance.
The following are some popular down payment assistance programs. Ask your loan specialist for more information about programs available in your area.
Many counties qualify for a USDA rural mortgage, which does not require any down payment at all. This is one of the best loan programs in the country, as the minimum credit score is just 640, and you will not need to pay private mortgage insurance (PMI). The guarantee fee may be financed and the monthly amount goes to the Rural Development division of USDA, since this is a government backed loan program.
The Tennessee Housing Development Agency (THDA) offers a single-family loan product with an optional second mortgage for down payment assistance, and a portion of closing costs, called The Great Choice Loan Program. It provides first-time homebuyers with a low interest rate, and The Great Choice Plus second mortgage option offers the same low rate with a second mortgage at 0 percent interest, which provides funds to be used for down payment.
Veterans Affairs (VA) loans were created to help veterans finance the purchase of their homes with no down payment. For the purpose of the VA loan program, “veteran” includes active duty service personnel and certain categories of spouses.
Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020