Getting a Home Loan

At Realty Executives Associates, we have representatives from Mortgage Investors Group right inside our office. MIG is Tennessee’s largest provider of single-family residential mortgages. Our partnership with MIG allows our clients to speak with a real estate agent and obtain financing in one spot. We coordinate with MIG throughout your home buying process to keep everything moving along smoothly and get you to the closing table faster and with fewer issues.

 

LOAN PROGRAMS

Conventional Loans
  • Loan limit: $417,000
  • 620 minimum credit score
  • Over 80% LTV for most occupancy types
  • Minimum borrower contribution from their own funds is not required for single unit principal residences with LTV greater than 80%
  • Fixed or adjustable rate mortgages (ARM)
  • 10, 15, 20 & 30 year loans
FHA Loans
  • Government loan
  • Loan limit: $271,050
  • Credit scores as low as 600
  • 3.5% buyer investment required (can be gift)
  • Ideal for homebuyers who do not have a large cash investment
  • Can be combined with THDA grant program to get buyers in with little to no cash out of pocket (see THDA loans)
  • Seller can pay up to 6% of buyer’s closing costs and prepaids
  • HUD REO purchases are available, including HUD REO $100 down purchases. HUD approved repairs may be financed into the loan amount.
  • HUD’s Good Neighbor Next Door Program is available and is a great option for buyers who are public servants (law enforcement, firefighters, EMTs and pre-K through 12th grade teachers)
  • Fixed or adjustable rate mortgages (ARM)
  • 15, 20, 25 & 30 year loans
VA Loans
  • Eligible Veterans only
  • Loan limit: up to $1,000,000
  • No down payment for loans under $417,000
  • Credit scores as low as 600
  • 100% of buyer’s closing costs and prepaids may be paid by the seller
  • Fast approval using automated underwriting
  • No monthly mortgage insurance (MI)
  • Available with THDA (see THDA loans)
  • Fixed or adjustable rate mortgages (ARM)
  • 15, 20, 25 & 30 year loans
THDA Loans
  • Single-family primary residences only
  • Low interest, 30 year fixed rate mortgage
  • Offers 5% of sales price in down payment assistance in form of THDA second mortgage
  • Allows for gifts from family members
  • Up to 6% seller concessions
  • 640 minimum credit score
  • THDA loans are offered in conjunction with FHA, VA, USDA and Conventional loans
  • Expanded guidelines now allow more borrowers an opportunity to qualify for this program and the down payment assistance
  • Owner occupancy required for the life of the loan, or may be subject to recapture
Rural Development / USDA Loans
  • 100% financing for qualified borrowers
  • Credit scores as low as 620
  • Seller can pay up to 6% towards closing costs and prepaids
  • Closing costs not paid by seller may be financed up to the appraised value
  • Rural properties only (there are a lot of areas Rural Development designates as “rural” that you might not expect to qualify. Call us and we will check the property’s eligibility)
  • In-ground swimming pools now allowed
  • Escrow holdbacks for interior repairs are now allowed, limited to 10% of the final loan amount
Jumbo / Non-Conforming Loans
  • Loans above $417,000
  • Typically have the same qualifications as a conventional loan
  • Offer higher debt to income ratios and more flexible income verification
  • Down payments can be less than 20%
  • Interest rates are typically slightly higher than conventional loans

SELLER PAID CLOSING COSTS

Closing costs can add up to thousands of dollars. Getting the seller to pay some or all of the closing costs can help you get into your new home with less money out of pocket. Here’s a quick guide to the different loan types and their allowable seller paid closing costs.

CONVENTIONAL

Seller paid closing costs depend on the amount the borrower is putting down on the loan.

  • LTV > 90% = 3% of the sale price
  • LTV < 90% and > 75% = 6% of the sale price
  • LTV < 75% = 9% of the sale price
  • Investment property has a 2% limit regardless of LTV
FHA

The seller can pay up to 6% of the sales price toward closing costs and prepaid expenses, provided the buyer has their 3.5% investment in the transaction.

VA

The seller can pay all of the buyer’s closing costs. However, the VA limits seller concessions to a total of 4% of the sales price for the following: VA funding fee, taxes, insurance, discount points, and payoff of credit balances or judgements on behalf of the veteran.

THDA

The seller can pay up to 6% of the sales price toward closing costs and prepaid expenses.

RD / USDA

The seller can pay up to 6% of the sales price toward closing costs and prepaid expenses.

MORTGAGE CALCULATOR

Need Help? Ask Shawn.

Shawn Swisher is an Affiliate Broker with Realty Executives Associates in Knoxville, Tennessee. If you need help buying or selling a home in Knoxville or the surrounding area, just ask! Shawn can be reached by email, text or phone.