For the Home Buyer who is VA eligible, a VA Loan option should be a first consideration. Most Lenders will find a credit score of 640 or above to be acceptable to most Investors. Do expect (in today’s lending environment) to have all documents verified and re verified! Mortgage Protection is not required but be prepared for a Funding Fee that can be financed into the loan. The number of trade lines, their length and derogatory “stuff” on credit lines will be examined and in many instances, will require additional explanation. VA loan maximums vary, so check with a Mortgage Professional for up to date information. Many of my clients prefer using Becky Walker at First National Mortgage Services in Murfreesboro (615-893-2273/616-491-5354 Mob; email@example.com) or Amy Rockett at Wells Fargo Home Mortgage in Murfreesboro (615-217-1601/615-586-2696 Mob; firstname.lastname@example.org).
Rural Development Loans provide another avenue to purchase a home in Middle Tennessee with zero down payment. Credit Scores, most often, will need to be at least in the 580-640 range. The non VA eligible Home Buyer who needs a zero down loan benefits from RD Loans as their credit score increases. For example, if an RD Loan customer has a 620 credit score, their loan interest rate might be 5.25%, a 1% origination fee may also be charged.
If that same Buyer had just a moderately higher credit score, lets say 660, their interest rate might be even more attractive at 5% and no origination fee would be charged.
The City of Murfreesboro also has money available to assist the First Time Home Buyers with up to $10,000. This Grant money has income limits and must be paid back when the property is sold in the future (but can be deferred). Check the Affordable Housing Program, Community Development Department website for more information. This is available for a limited time!
Another Murfreesboro Neighborhood Qualification Program (NSP) provides a grant up to $14,999 to any qualified home buyer (does not have to be a first time home buyer) whose income is under a certain limit (think in the neighborhood of up to $54k). Potential buyers are encouraged to visit the website above then go to the Community Development section and to CensusBureau.gov to see what areas are approved.
Funding is through THDA; best of all this subsidy is forgiven if the property is continuously utilized as a primary residence for 5 years from the date of closing. Refinancing at any time during the 5 years however, will require repayment of the grant in full.
Lastly, the Welcome Home Grant, works in conjugation with FHA and provides up to $5000 down payment and closing cost assistance to qualified buyers. This is also available for a limited time and only a limited number of Grants are available.
Give me a call to let me determine if any of these programs best serve your need and/or if you are thinking of buying a home in Murfreesboro or anywhere in Middle Tennessee.