First Time Home Buyer? Hip, Hip Hooray for Thda!

home buyer

Kristin Abouelata - Home Loans asked: “In order to promote the production of more affordable new housing units for very low, low and moderate income individuals and families in the state, to promote the preservation and rehabilitation of existing housing units for such persons, and to bring greater stability to the residential construction industry and related industries so as to assure a steady flow of production of new housing units…”

Many times, people have heard of THDA and are confused, thinking that THDA is a certain loan type. In fact, it’s lending agency. All THDA mortgages must be insured by private mortgage insurance, FHA, VA or RECD And as these loans are intended for low to moderate income families or individuals, there is a income limit and acquisition cost limit. Also, you must be a first time homebuyer unless your home is in a targeted area.

Why is THDA so fantastic for a first time homebuyer? Well, it comes down to money. THDA offers a below market rate and will allow up to 100% financing. Have you been reading the papers lately? It’s not so easy to find 100% financing these days. Unless, that is, you’re a first time homebuyer. It also has programs that allow for down payment assistance via grants from certain approved agencies (if your loan type requires a down payment). If you have satisfactory credit and the home you wish to buy meets THDA’s standards, then you’re in business.

All THDA mortgages are 30 year fixed rate loans, so you needn’t worry about finding yourself with an ARM loan (adjustable rate mortgage) and a new payment you can’t afford in 3 years. And THDA allows lenders to only charge customers a standard 1% origination and .25% discount fee. It also closely monitors fees associated with the loan. THDA really looks out for the best interest of the first time homebuyer. If you are eligible for a THDA loan, you can feel pretty certain that an unscrupulous lender can’t take advantage of you because THDA won’t let them. For so many people, buying a home is pretty intimidating. THDA takes away the uncertainties a buyer faces with its guidelines and lending practices.

If you do apply for a THDA loan, be prepared to document your credit worthiness. THDA loans require slightly more documentation than your average loans because of the uniqueness of its product. In order to offer more, THDA asks for more – ensuring you qualify for its pretty awesome program. Sounds like a fair trade, if you ask me.

What are the disadvantages of a THDA loan? Not many. They do have a federal recapture tax if you sell your home within the first nine years of owning it. But it sounds scarier than it really is. I’ve heard that only about 1% of THDA customers actually pay this tax. That’s because a bunch of really great things have to happen to you in order for it to actually apply to you. And if those great things happen to you, paying the recapture tax won’t matter much to you anyway. I’ve been in the business for 16 years and have only heard of one person actually having to pay one. He graduated from medical school and his income when through the roof. His property was sold above market value than for the area because it was adjacent to some property that a huge retailer wanted to purchase. Again, good things have to happen to pay the recapture tax. So, you shouldn’t be afraid of it.

More people need to hear about and take advantage of the THDA loan programs. It’s such a great product and really helps the community and the housing industry. If you’re a first time homebuyer or think you’re in a targeted area, make sure you ask about THDA to see if you would qualify for a loan. You won’t regret it!

The First Time Home Buyer Handbook

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6 Responses to “First Time Home Buyer? Hip, Hip Hooray for Thda!

  • MyAvatars 0.2
    1
    student loans
    May 26th, 2009 13:39

    Very informative site, and very interesting posts. I have bookmarked your site, and will be back, good work guys.. thanks

  • MyAvatars 0.2
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    Juliate
    November 15th, 2009 05:54

    It’s a very nice Article,i like it,Thanks for sharing,Everything You Require To Know Around Mortgages, home loans and Real Estate made simple. Simple to realize articles and advice make your selection much easier to make.

  • MyAvatars 0.2
    3
    JD Smith
    August 10th, 2010 01:23

    That’s awesome information. I’ve been a realtor about 10 years now and thda may definitely help some of my buyers in todays economy, plus give me a little extra cash in the process…lol! It’s mostly first time buyers I work with so everything changed after the tax credit deadline. Thanks for this great info. JD

  • MyAvatars 0.2
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    ROBERTSON33Lelia
    February 2nd, 2011 11:31

    That’s great that we are able to get the mortgage loans and this opens up new possibilities.

  • MyAvatars 0.2
    5
    kentucky mortgage broker
    May 7th, 2011 19:51

    Very good article about sales and the tax credit deadline

  • MyAvatars 0.2
    6
    Short Sales Avondale
    February 4th, 2012 03:07

    Short Sales Avondale…

    […]First Time Home Buyer? Hip, Hip Hooray for Thda! | Call This Realtor Now[…]…

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