You can buy a house in Nashville with Zero down.
The Tennessee Housing Development Agency or THDA offers you the “Great Start” program to help you with your down payment AND closing costs.
They will grant you 4% of the Loan Amount.
For this to work, so you can buy with Zero Down, you have to use this grant in combination with an FHA loan, which requires 3.5% down payment. THDA’s 4% grant would cover the 3.5% required down payment and you would have .5% left over to apply towards your closing costs.
Thanks to THDA you take care of the down payment and a little bit of closing costs, but for you to really put Zero Down on your home purchase, you must have your Realtor negotiate the seller to pay ALL your closing costs. In today’s market this is very possible and most sellers are willing to help you in order to make the sale go through.
THDA loans are more involved than regular FHA loans and require that Loan Officers spend extra time and be more knowledgeable about the guidelines and costs. Ask your loan officer if he is experienced with THDA loans. If not, keep shopping around. Contact us for recommendations on experienced THDA loan officers that we have worked with in the past.
Lastly, you need an experienced Realtor who knows the THDA process. Your Realtor has to be in constant communication with your Loan Officer and be on the same page as far as the closing costs needed for you to buy with Zero Down. If your Realtor is not familiar with THDA, he may not negotiate the correct amount of “seller paid closing costs” and you will end up bringing money to closing.