FHA home loan presents a great financing opportunity for first-time buyers purchasing around Nashville. FHA loans still only require 3.5% for a down payment, which is great for many first time home buyers in Davidson County. Also, the current FHA loan amount limits are very generous at $466,900 when compared to other Tennessee counties. This is great as buyers have more flexibility and purchasing power when choosing their perfect home.
In addition to high FHA loan amount limits in Davidson County, the FHA loan allows for a min down payment of only 3.5% for approved home buyers that have credit scores above 600. Even home buyers that have lower credit scores down to 580 may possibly have FHA financing options with larger down payments of 5% - 10%. First-time buyers have limited options when it comes to reduced down payment mortgage, FHA is a great choice for the new home buyers just starting out. The minimum down can even come as a gift from the buyers family, etc. Furthermore, FHA also permits the home seller to pay the buyers closing costs! Buyers looking to purchase in more rural locations of Tenn should also learn more about the 100% USDA RD Loan. USDA Rural Housing loans are available in select rural locations just outside of the major cities like Nashville, etc.
All the government loan programs carry some nice benefits that include:
- Secure fix interest rate terms - 30 yr, 15 yr, etc
- Government backing
- No early pay off penalties, home buyers can sell their home and pay off their loan anytime without penalty
- Buyers closing costs can be paid in part or full by the home seller
- Streamline refinance options should interest rates decrease down the road
Contact Coast2Coast to learn more by visiting www.Coast2CoastLending.com