Can You Afford to Buy a Home? You May Qualify for Down Payment Assistance!

The Mortgage Industry has changed over the last several years regarding various loan program down payment requirements.

There are 4 basic loan programs. Each has its own unique down payment requirement. 

They are as follows:
VA is a 100% loan for Veterans and do not have a down payment.
Rural Development is a 100% loan to qualified buyers.
FHA requires a 3.5% down payment.
Conventional requires a 5% down payment.

Many borrowers worry about not having the funds to purchase a home.  Don’t give up on your dream home without knowing all of the down payment assistance options available to you whether you are a first time homebuyer or buying your fifth home!

My office and home is in Murfreesboro, TN. So, for local first time homebuyers, you can get down payment assistance through the City of Murfreesboro
Or THDA.  Both of these options do have income limits based on people living in the home. 

Now, some options for non first time homebuyers are:

You can receive a gift of funds from a family member. Note that these funds cannot be borrowed funds. 

You can borrow from your own liquid asset, such as a 401K.

You can also get a loan from a local approved agency in your area.  One of the agencies that I have used for my borrowers in the Middle Tennessee area is called The Housing Fund.

Each State, County and City could have their own approved agency for down payment assistance.  If you have used any programs like one of these in your area, I would appreciate hearing from you about your experience in the comments section of this post.  You can also reach me at 615.907.2628 or email shearer.spears@guarantytrust.com with other questions. Thank you for reading!

Shearer Spears

Written by: Shearer Spears
Murfreesboro, Tennessee

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Comments - 3

Shearer, this is great! Thanks for the post smile

By Jenny Williams on 8 July 2011

Great information Shearer! Looking forward to what other areas are doing.

By Lori Clark on 8 July 2011

Thank you so much for this,You really are a fount of knowledge and I thoroughly appreciate you taking the time to write such a great article. interior painting

By interior painting on 16 July 2011

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