NASHVILLE, Tenn. (WTVF) — High interests rates are keeping a lot of house-hunters from, well, hunting.
On top of that, rising rents are making it tough for renters to save up to buy.
"The way rents are going, sometimes a mortgage on a starter home will cost you less each month than it would cost to rent a two or three-bedroom apartment," said Ralph Perrey, the executive director of the Tennessee Housing Development Agency.
The Tennessee Housing Development Agency does a lot more than help people move into public housing. THDA is the state's housing finance agency. A big part of what the agency does is help middle-income families finance a home.
"There will always be folks who want and need to buy a home, and I think what we offer them is a very market competitive rate on a variety of mortgage options, and we've got the down payment closing cost assistance that can help you," Perrey said.
Most buyers need a mortgage to buy a home. THDA — which is not a lender — has mortgage options for both first-time and repeat home buyers. You might be eligible for their first-time home buyer loan and not even realize it.
"A first-time home buyer is someone who hasn't owned a home in the last three years. If once upon a time you owned, but you haven't for awhile, you're back in the pool for that," Perrey explained.
THDA's Great Choice loans and down payment assistance programs are designed to help Tennesseans buy modest homes, but more families are eligible than you likely think.
"It sometimes surprises folks, especially in the Metro Nashville area, to know that a family of three or four can be earning roughly $130,000 a year and still be eligible for THDA financing," Perrey said.
These are the county-by-county acquisition and income limits.
Great Choice also offers a 0.5% interest rate reduction for qualified military, police officers, EMT/paramedics and firefighters and their spouses through Homeownership for Heroes.
"Chances are... whoever you have a banking relationship with, if they do mortgages, they can work with us," Perrey said.
THDA encourages home buyer education for all home buyers and requires it for all of the THDA mortgage loan programs.
It's smart to shop around for a mortgage to find the best fit for your finances. Habitat for Humanity, the Housing Assistance Council and your local community action agency are also great places to find home ownership assistance.
