Smart Move
The Rutherford County Chamber of Commerce and the Chamber's Destination Rutherford economic development program have joined together to help create jobs in support of a key existing industry in Rutherford County that provides thousands of jobs to County citizens.
The Smart Move program urges you to research the many home loan programs currently available. If you are considering a home purchase, take advantage of temporary programs before they expire. For example, the federal Homebuyer Tax Credit Program requires a signed real estate contract by April 30, 2010, with closing on that contract by June 30, 2010. This program is available to qualifying existing homeowners and first-time homebuyers.
Following is a listing of many home loan programs currently available. This listing is not intended to include every available home loan program; instead, it provides a starting point. There are many additional home loan programs through individual mortgage lenders, banks, credit unions and other entities that also may be available. In addition, please talk with your REALTOR® about other ideas to help you obtain financing for your home.
Also, be sure to mark your calendar for the SmartMove Homes Weekend sponsored by the Rutherford County Chamber of Commerce, Destination Rutherford, the Middle Tennessee Association of REALTORS® and the Rutherford County Home Builders Association April 10 and 11, 2010.
Visit mtar.org for more details on this program, which will provide free educational seminars on home buying, a home building and home buying trade show, and a countywide open house fair.
Listing of Home Loan Programs
Homebuyer Tax Credit Program (federal program)
For more information, visit federalhousingtaxcredit.com
For: Existing Homeowners and First-Time Homebuyers with income limits
- Homebuyer Tax Credit Program (federal, extended) The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts.
- Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
- The new law also:
- Authorizes the credit for long-time homeowners buying a replacement principal residence.
- Raises the income limitations for homeowners claiming the credit. The maximum credit amount remains at $8,000 for a first-time homebuyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.
- But the new law also provides a "long-time resident" credit of up to $6,500 to others who do not qualify as "first-time homebuyers." To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.
- The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
- For homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
Affordable Housing Program (City of Murfreesboro)
For more information, visit murfreesborotn.gov/default.aspx?ekmenu=108&id=1060
For: Income-qualified first-time homebuyers buying houses within the City of Murfreesboro limits
- House has to be in the City of Murfreesboro limits
- Provides a second mortgage at 0% to qualified first-time homebuyers whose household income meets the requirements for low or very low income. Can be used for principal reduction or closing costs.
- New construction or existing home
- Family income not more than 80 % of the area median income; exact amount depends on household size (example: highest amount is $68,500 income for a household with 8 persons)
- Maximum amount is $10,000
- Some loans are grants; some have to be paid back under certain conditions
- Up to five loans available for this program
Neighborhood Stabilization Program (City of Murfreesboro)
For more information, visit murfreesborotn.gov/default.aspx?ekmenu=108&id=1060
For: Income-qualified first-time homebuyers and existing homeowners (purchased and foreclosed properties)
- House has to be in the City of Murfreesboro limits
- Forgivable, no-interest loan of $14,999
- Have to had a permanent mortgage with THDA
- Have to stay in the home for five years for the loan to be forgiven
- Income-eligible households only (example: highest amount is $102,800 for a household with 8 persons)
- Unlimited number of loans available for this program
Tennessee Housing Development Agency
For more information on Tennessee Housing Development Programs, visit thda.org
For: Income-qualified homebuyers
BUILD Loan Program
The purpose of the BUILD Loan Program is to promote the production, preservation, and rehabilitation of housing for low and very low income households by making low interest short term loans available to eligible nonprofit organizations that help meet the housing needs of low and very low income households in Tennessee by engaging in eligible low income housing activities. The loans may be secured or unsecured depending on the proposed activity.
Eligible Participants
To be eligible for participation in the BUILD Loan Program, the non-profit organization must:
- Be organized under Tennessee law, as evidenced by Certificate of Existence from the Tennessee Secretary of State dated no more than 90 days prior to the date of application to the BUILD Loan Program.
- Have an IRS designation under Section 501(C)(3) of the federal tax code.
- Be dedicated to the purpose of creating affordable housing for low and very low income households. Household incomes must be at or below 80% of area median income adjusted for family size.
- Submit a viable plan for loan repayment.
- Submit most recent financial audit, audited financial statement, or letter of financial review by CPA firm.
- Submit documentation of Board approval for participation in the BUILD Loan Program.
- Have errors and omissions insurance if requesting a 12 month or 18 month loan (this does not include 12 month start up loans).
- The organization must be in good standing with all THDA programs.
Eligible Activities
BUILD Loan Program funds must be used for operating and program expenses incurred to create affordable housing opportunities for low and very low income households. Eligible activities may include:
- Development of single and multi-family units for homeownership or rental
- Construction
- Land Acquisition
- Site Preparation
- Pre-Development
BUILD Loan Program funds may not be invested, loaned, or used to refinance or retire current debt. BUILD Program Loan Options
- 6-Month Loan
- Up to $50,000 at 2% interest for 6 months
- Interest payments and progress reports due at 3 month intervals
- Payment of total outstanding balance due at end of term
- Other loan applications must be at least 3 months from receipt of 6 month loan
- An organization may not have more that $500,000 in outstanding BUILD loans at any one time
- Multiple disbursements of funds may be made at THDA's discretion
- 12-Month Loan
- Up to $100,000 at 3% interest for 12 months
- Interest payments and progress reports due at 6 month intervals
- Payment of total outstanding balance due at end of term
- Other loan applications must be at least 4 months from receipt of 12 month loan
- An organization may not have more than $500,000 in outstanding BUILD loans at any one time
- Multiple disbursements of funds may be made at THDA's discretion
- 18-month Loan
- Up to $300,000 at 4% interest for 18 months
- Interest payments and progress reports due at 6 month intervals
- Payment of total outstanding balance due at end of term
- Other loan applications must be at least 6 months from receipt of 18 month loan
- An organization may not have more than $500,000 in outstanding BUILD loans at any one time
- Multiple disbursements of funds may be made at THDA's discretion
THDA reserves the right to give preference to organizations serving only families at or below 50% of area median income. Multiple disbursements of all loan funds may be made at THDA's discretion and may depend upon the receipt of satisfactory progress reports from the participating agency. THDA reserves the right to terminate the loan at any point if progress is not determined to be satisfactory.
USDA Rural Development, United States Department of Agriculture
For more information, visit rurdev.usda.gov/RHS
For: Income-qualified and location-qualified home buyers
USDA Rural Development home ownership programs ensure that all Americans living in rural areas have access to affordable, well-built homes. A good home is more than just a roof overhead. Homes are the cornerstone of our communities. They help families achieve economic stability and build savings over time that can help finance things like higher education and retirement.
Loan guarantees enable private lenders to extend affordable terms to more eligible buyers. Loan guarantees are also available to developers building, buying or repairing multi-family apartment complexes.
Direct loans and grants help eligible families buy, build or repair modest homes in rural areas with populations less than 20,000.
Eligibility for Rural Development homeownership and home repair programs is based on family income and varies by county. Contact your local Rural Development office staff for help calculating your family income and applying that number to the limits for your county.
Direct Home Loans
Helps eligible families achieve homeownership through low interest home loans originated and serviced by USDA Rural Development. In FY-08 our staff brought owning a home within reach through affordable mortgages for 1,500 families and individuals in Tennessee. Contact your local Rural Development office for more information and to find out if you qualify. A list of offices in Tennessee is located in the column to the right.
FNMA Program
For more information, visit fanniemae.com/kb/index?page=home&
c=homebuyers_homebuyingprocess
FreddieMac Program
For more information, visit freddiemac.com/singlefamily/mortgages
Reminder and Disclaimer: The information listed here does not constitute a complete list of all home loan programs. It is a starting point for consumers. In addition, the information listed is provided by the sponsoring agency itself; please contact each agency directly to confirm details and obtain more information.
