Calling all Knoxville area buyers; here's a deal you shouldn't pass up.

Real Estate Agent with RE/MAX Shoreline New Hampshire & Maine

First the federal government came up with the American Recovery and Reinvestment Tax Act of 2009 which provides for a tax credit of up to $8,000 or a maximum of 10% of the sale price of a home for buyer who have not owned a home in the past three years.

Sounds like a good deal but a lot of otherwise qualified buyers were still being left out because even though they were able to qualify creditwise they were cash poor and just didn't have enough available funds to take advantage of the tax credit.

Enter a new program from the Tennessee Housing Development Authority (THDA). Now you can actually borrow, via a second mortgage on your new home, up to 3.5% of the down payment amount which is not coincidentally the minimum down payment required for FHA financing.

Basically all you need is a minimum 620 credit score, debt to income ratio not more than 45%, and you have to attend a short class that educates you on how to become a responsible homeowner; pretty easy stuff for most.

The interest rate on your down payment loan is 0% until as long as June 1st of 2010 and at that time you can either repay it with your $8,000 tax credit or begin making payments on it at just 1% over your current first mortgage rate for 10 years.

So if you have a 5% first mortgage and borrow, let's say $3,500 for your 3.5% down payment you can pay it off at 6% interest at a monthly payment of $38.86 per month.

If that's something that you think might put you into a new home, give me a call at (865) 693-3232 or email me and let's sit down to talk about making you a homeowner.

See over 5,000 Knox County single family home and condos for sale at

Here's just a couple of Knoxville area homes that you can buy today.

charming cape cod in north knoxville priced at only $129,900

This charming 3 bedroom, 2 bath home is located in north Knoxville and priced at only $129,900!

basement rancher on large lot and just $149,900

Attractive basement rancher on large lot with woods in back and a lot for the money; $149,900

Posted by

Jim Lee , REALTOR®, Certified Residential Specialist (CRS)  RE/MAX Shoreline

100 Market St., Suite #200, , Portsmouth, NH 03801 Phone: (603) 431-1111 x3801

Visit New Hampshire Maine Real to search homes, get Seacoast area information, and find out how great living on the New Hampshire and southern Maine Seacoast really is.


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Associate Broker Falmouth MA Cape Cod Heath Coker & - Falmouth, MA
Heath Coker Robert Paul Properties Falmouth MA

Renters should figure last year's taxes with an added $8000 tax credit and see if it will help them.  Buy now and avoid the rush!

May 10, 2009 06:27 AM #1
Jim Lee
RE/MAX Shoreline - Portsmouth, NH
Portsmouth NH Realtor, Portsmouth, NH

Yes, and they should also factor in the deductability of mortgage interest and property taxes as well as the security of have a fixed payment instead of continually increasing rental payments.

Just a few of the benefits of home ownership.


May 10, 2009 10:41 AM #2
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Jim - good information for buyers who may qualify for this new program. It's been interesting to see what new state programs have been cropping up to supplement the federal program, or better enable buyers to take advantage of it.


May 10, 2009 03:04 PM #3
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Tennessee is such a beautiful state!  I hope renters in your area see this post and contact you to take advantage of those programs.  Both of these homes look like good buys!

May 11, 2009 10:50 PM #4
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Jim Lee

Portsmouth NH Realtor, Portsmouth, NH
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