Chattanooga 100% Financing

How to purchase a home in Chattanooga TN with little to no money down.

Zero Down Financing Program Options

To purchase a home with the least amount out of pocket you will need to specify in the contract that the seller pay all of your closing cost. In doing so you really need to speak with a lender to get an approximate figure so that you do not leave money on the closing table. Often buyers ask for 3% in closing cost from the seller but depending on the program and loan amount your actual closing cost may be considerably less, unfortunately the overage will not be credited to you but just require the seller to pay less. So you could have potentially negotiated a lower price by asking for less in concessions. It is also advised to pay attention to current mortgage and housing trends.

Current 1005 financing programs include:

VA loans: If you are a veteran or active member of any branch of the military or reserves you probably are eligible for a VA loan. The main benefit of a VA loan is no month PMI which can make a huge difference in your monthly payment. Also if you are a disabled or partially disabled veteran, you probably will not have to pay the upfront funding fees.

USDA loans: Yes, this is a loan backed by the U.S. Department of Agriculture. This loan is meant for rural housing and is geographically limited meaning you can only use this type of financing if you purchase a home in certain areas. The main benefit of this loan is a lower monthly PMI payment than a FHA loan. This varies but is currently 0.95% less per year than a FHA loan. Please contact us for a map of which areas are eligible.

THDA loans: These loans are FHDA programs that have down payment assistance via the Tennessee Housing Development Agency. There are currently 3 products available to learn more about these programs see Chattanooga THDA.