Down Payment Assistance Loans - Down Payment Assistance Programs


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.


Down Payment Assistance Program

USDA Rural Loans

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.

THDA Loans

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.

Federal Home Loan Bank

VA Loans

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.  

American Dream Down Payment Act

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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 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:
  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

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