The mortgage world can be confusing, particularly if you’re a first time home buyer.
If you’re thinking about buying your first Knoxville home, here is a brief rundown of some of the most popular mortgage loan programs out there.
3% down convention loans are another popular loan for first time home buyers. This loan recently made a comeback to the mortgage scene in early 2015. It is a great option for buyers who want to put some money down and want to avoid the mortgage insurance for the life of the loan that comes with FHA loans.
Conventional loans are any mortgage that is not insured by the federal government, where a buyer puts anywhere from 5% to 20% down on a home.
FHA loans are a very popular loan option for first time home buyers. They offer low down payment options for buyers with less than perfect credit or for those buyers who haven’t established credit.
THDA Great Choice Plus Second Mortgage offers first time home buyers a 0% interest, deferred, second mortgage to get 100% financing on a Knoxville home for sale.
USDA loans are another very popular loan for first time home buyers. They offer 100% financing for buyers who meet certain income limits and who buy in an area considered to be “rural.”
For those that have served our country, VA loans offer a great loan program for first time home buyers. First time buyers are able to get into a home with no money down and absolutely no monthly mortgage insurance.
Also, be sure to check out what documentation you’ll need to apply for a mortgage.
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!