THDA Changes for 10/2014

Real Estate Agent with RE/Max Homes & Estates, ABR,GRI, CDPE, SFR 296642

THDA, a program designed to help buyers with down payment assistance has restructured its program once again.  This time helping the borrower even more. 


Eliminates 2nd Mortgage Payment  


                 Effective October 1, 2014, THDA announced on Monday an increase in the rate from 3.99% to 4.2% for their thirty year programs and 3.7% for the popular Brave programs for eligible Veterans.


                            But THDA also announced a new format for the second mortgage payment, used for down payment assistance on FHA loans. The new second mortgage format does not have a monthly payment,  The balance of the second is payable by the borrower if the loan is refinanced or the property sold during the first ten years.  Thereafter, 20% of the second mortgage balance is "forgiven" by THDA for each year, eleven through fifteen years of the loan.


                            This second mortgage change makes it easier for the borrower to qualify than the previous program and diminishes the effect of the increase in the rate.


If the borrower does not sell in 15 years, then effectively the money is free.  If they do sell, then they pay the money back and help pay it forward for the next buyer. Appreciation should cover the down payment money owed provided the buyer has lived  in the house for  at least 5 years.

Call today if you are looking to buy and would like more information about this program.

Maria Holland, RE/MAX Ellite 615-289-6056/615-661-4400



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Maria Holland

Realtor, ABR, GRI, CDPE, SFR
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