Federal Housing Authority (FHA) 100% Springboard Loan
This is a second loan that will cover up to 4% of your down payment! We are excited that they are offering this in Tennessee because of what an awesome program it is! With the Springboard FHA loan you only pay interest on a second mortgage! The interest rate is the same as your home loan but this type of loan does not require you to have Private Mortgage Insurance. (Typical PMI is around 1% of the overall loan compounded yearly, so $100,000 loan would have you paying $1,000 a year to PMI alone). The interest rate on the second loan would be less than $20 monthly (on $100,000 home) which equates to $240 a year saving you a lot of over the life of the loan. There are some income caps depending on the area that you live and a 660 minimum Fico Credit Score. This may compile up to 100% of the borrowers cash to close. One buyer must be a first time home buyer and be willing to have a 30 year fixed mortgage. Give us a call today and find out how you can get started with this great program!