Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender

THDA Down Payment Assistance - Great Start Rate Increase Announced

Tennessee Housing Development Agency, THDA, offers great assistance for Tennessee first time home buyers who meet their eligibility criteria. One of the best benefits with the THDA programs is interest rate stability. Since THDA programs are funded with a separate bond offering, the THDA rates do not vary dailyTHDA opens doors with the regular bond markets.

This week though THDA did announce a rate increase, effective February 14. The rates on the three assistance programs were increased by .5%. When THDA announced the increase they indicated that it was necessary because of "unfavorable bond conditions."

No doubt the bond market has seen market conditions worsen rapidly, especially over the past two weeks. This rate increase is higher than normal adjustments because the bond market has weakened so much.

THDA offers 3 programs for first time home buyers.

 

Great Rate

Great Advantage

Great Start

Rate

4.75%

5.05%

5.35%

Down payment and closing costs grant

None

2%

4%

All three programs can be used with an FHA or a Rural Development loan. For most first time home buyers, THDA makes a great compliment for an FHA loan because the Great Start program provides the minimum FHA down payment and and helps some with closing costs.

Typically with the Great Rate program, first time home buyers will find the THDA note rate is lower than the normal market rates for FHA or Rural Development.

Home buyers to be eligible for one of the THDA programs must be under maximum income limits, be first time home buyers, receive approved Home Buyer Education, and be otherwise qualified for the FHA or Rural Development loan program.

THDA is one of my favorite loan programs because it can help many home buyers, especially in this time or increasing interest rates and tightening approval guidelines.

For more questions, call me at 423-280-0345 or visit my website at www.RichardSmithHomeLoans.com


Thank you for visiting. This is the professional blog for

Richard Smith

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC).
Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Cell phone: 423-280-0345 Email: Richard@HomeLoansChattanooga.com

Visit my website: www.RichardSmithHomeLoans.com To start your approval Apply Here

Read my most recent articles in Scotsman Guide.
Search for properties:
www.HomeLoansChattanooga.com


Thank you for visiting. This is the professional blog for

Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development ( USDA), and Jumbo Loans


Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email: Richard.Smith@SPM1.com

Visit my website to inquiry about a home loan.

Read my most recent articles in Scotsman Guide.

This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

Comment balloon 0 commentsRichard Smith • February 11 2011 10:41AM
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