For a long time, many Knoxville first time home buyer have struggled to qualify for conventional loans, due to issues coming up with the down payment. Luckily, all of that has changed, with the re-introduction of the 3% down conventional loan by Fannie Mae and Freddie Mac earlier this year.
Loan Details —
- As little as 3% down to get into a home
- Only one borrower must me a first time home buyer
- Down payment may be gifted
- Mortgage insurance is NOT required for the life of the loan (unlike FHA)
- Low monthly mortgage insurance payments
- Single family dwellings only
- Owner occupant homes only
- Credit requirements vary – 680 or better if borrower is using own funds, 740 or better if gifted funds are to be used
A 3% down conventional loan offers another low downpayment as an alternative to FHA loans. These types of loans are typically less costly than FHA loans. They also do not require that a borrower carry mortgage insurance for the life of the loan, unlike FHA loans which do.
Are you thinking about buying your first Knoxville home for sale this year? If so, do not hesitate to give Knoxville Home Team a call today. Rick can be reached at 865-696-9002 or via email at [email protected]. Kati can be reached at 865-696-1888 or via email at [email protected]. We’ve helped countless first time buyers find the perfect home for them and we’d love to help you do the same!