Loan Programs

This is when you need to rely on the knowledge & experience of your loan officer. The mortgage market is ever changing some programs are here today gone tomorrow; listed below are the basic programs.

VA Loan: a government backed mortgage loan supported by the U.S. Veterans Administration.
What does this mean to you: If you have served in the military as active duty, guard or reserves you may be eligible for a 100% loan with no mortgage insurance. Guidelines for debt & credit are less strict. The seller my pay all your closing costs. Soyou may purchase a home with no money out-of-pocket and have a good interest rate!
FHA Loan: a mortgage which is partially insured by the Federal Housing Administration. The down payment is usually less than that for a conventional loan.
What does this mean to you: You must contribute 3% of sales price for down payment or closing costs. Seller can contribute 3% of sales price to closing costs. Guidelines for debt & credit are less strict. You may purchase owner-occupied home, second home or investment properties. Interest rate are good and may vary.
Rural Development Loan: 100% government loan with no mortgage insurance premium required. It available in rural areas on a case by case basis. Interest rates are good.
What does this mean to you: Most counties in Tennessee are rural, so many areas qualify for this 100% loan. There are income restrictions but it is a great program even if you have no credit. Guidelines for debt & credit are less strict. This loan is available to applicants who cannot qualify for a conventional loan at reasonable rates & terms.
THDA Loan: a government insured loans intended for low to moderate income homebuyers.
What does it mean to you: You must be a first-time homebuyer and meet income requirements. Home prices must not exceed certain limits and you may be required to attend a Homebuyer Education class. Interest rates are good & you may receive down payment assistance.
Conventional Loans: a loan that is not insured or guaranteed by any agency of the federal government.
It is a private loan. There are two types Conforming and Non-Conforming.
Conforming Loans:
Conforming loan has tougher guidelines and the buyer must put at least 3% down payment and the seller is limited to how much closing costs they may pay. Mortgage insurance is required if loan-to-value is more than 80%. Interest rate may vary but are good.
Non-Conforming loan
Non-Conforming loan will not meet conforming guidelines because of credit and/or loan amounts. Buyers down payment varies and seller allowed closing costs varies. Rate are higher because of higher risk for larger loan amounts and/or credit risk.

TOP