FHA Loans in Nashville TN
Nashville TN is one of the fastest growing cities and has one of the better economies in the entire United States of America. As a result many people are moving to the area and buying homes. While many of those people qualify for and utilize a conventional loan for their purchase of their new home, there are also many that for various reasons that cannot get approved for a conventional loan and would benefit from a FHA loan.
FHA loans in Nashville TN opens the door to homeownership for many homebuyers that would otherwise be unable to purchase a home due to their inablilty to get financed for the purchase.
There are three primary ways that FHA expands the opportunity for home ownership in the Nashville area
- Credit: Where conventional loan guidelines require borrowers to wait for longer periods following a credit problem such as a bankruptcy, foreclosure or short sale, an FHA loan allows home buyers to qualify in as little as one year after a chapter 13 bankruptcy and 2 years following a chapter 7
- Down Payment: FHA loans require a lower down payment than a conventional loan; 3.5% as compared to 5%. Also the FHA guidelines allow for the down payment to come from a family member in the form of a gift instead requiring the down payment to come from the borrower's own funds.
- Reduced cash needed to close: Conventional guidelines limit the amount the seller can pay towards the buyers closing costs to 3% of the purchase price. FHA loans on the other hand allow for double that amount. Sellers can contribute up to 6% of the purchase price towards the buyers closing costs. This is critical because cash to close is one of the primary hurdles that prevent home buyers from being able to purchase a new home.
The FHA loans in Nashville TN is not the perfect loan and is not the best choice for many of today's homebuyers, but it is a great choice for those that need the flexibility offered by the FHA guidelines to realize their dream of home ownership.
The FHA Loan limits for Tennessee have been updated. However, the only area to see a change is the Nashville Metro Area that now has a FHA loan limit of $425,500 while the rest of the state is at $271,0500
Give me a call today to see an FHA Loan in Nashville TN is the right loan for the purchase of your new home.