FHA loans are one of the most popular loan programs out there for Knoxville first time home buyers.
FHA loans are great for first time buyers who have limited credit established, buyers who have had past credit issues (like foreclosure or a short sale), or buyers who don’t have large enough downpayment for a conventional loan.
FHA loans are secured by the Federal Housing Administration, which is government agency within the Secretary of Housing and Urban Development (HUD). Since FHA loans are governmentally insured loans, borrowers pay mortgage insurance for the life of the loan. Luckily, the FHA recently reduced the annual mortgage insurance premiums in FHA loans, making FHA loans more affordable than ever for Knoxville first time home buyers.
Program Details —
- Small downpayment requirements, as low as 3.5% down
- Credit scores as low as 620
- Loans amounts up to $272,050
- Fixed rate loans, with affordable interest rates and no pre-payment penalties
- Seller can pay closing costs up to 6% of purchase price
- Flexible mortgage terms (15 to 30 year options)
- Down payment may be gifted
- Can be used in conjunction with a THDA grant
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 Rick@KnoxvilleHomeTeam.com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.com. We’ve helped countless first time buyers find the perfect home for them and we’d love to help you do the same!