How To Buy A Knoxville Home With Zero Down
Many Knoxville home buyers may be shocked to learn that it is possible to buy a Knoxville home for sale with zero down.
For many Knoxville buyers, USDA loans are a popular way to buy a Knoxville home with zero down. There are certain income limits that must be met and the home must be listed in an eligible area. The great thing about USDA loans is that you don’t have to be a first time home buyer in order to be eligible. While not every area of Knoxville is eligible for an RD loan, there are many popular areas including parts of Hardin Valley, parts of Karns, and Lenoir City.
For first time home buyers, THDA loans offer an opportunity to buy a Knoxville home with zero down. While the program has income limits, there are no restrictions to the area like there are with RD loans. THDA offers something called the Great Choice Program. This program offers a second mortgage to cover any closing costs or a down payment. The second mortgage loan is 4% of the sales price and is paid back over ten years with a 0% interest rate. If the home is sold before the 10 years is up, the remaining balance can be paid off with the sale of the home.
It is also possible to have a family member gift the down payment to buy a Knoxville home with zero down. FHA loans, VA Loans, and some conventional loans allow buyers to buy a home with gifted funds. Just be sure to talk with a loan officer prior to making any deposits, as there is certain documentation that is required.