first-time home buyers | Joe Spake's Weblog

This just out from THDA (Tennessee Housing Development Administration:

New Second Mortgage Program for Down Payment and Closing Cost Assistance

THDAâ€™s Board of Directors approved at its March Board meeting a new second mortgage program for down

payment and closing cost assistance to assist first-time homebuyers. Principal and interest will be deferred untilJune 1, 2010. Payments for principal and interest will commence on July 1, 2010 if not repaid in full. First-timehomebuyers will be able to borrow funds at no interest for a short period until such time as they receive the First-Time Homebuyer Credit authorized in the Section 3011 of the Housing and Economic Recovery Act of 2008, asamended by Section 1006 of the American Recovery and Reinvestment Tax Act of 2009.

In order to be eligible for this Second Mortgage Program, THDA MUST be providing funding for the first

mortgage through Great Rate or Great Advantage to purchase the home. We are currently working on the guidelines

and changes to our Originating Agent Guide and anticipate accepting applications for this program April 1, 2009.

I will keep you posted on details.

Yesterday, President Obama signed the $787 billion American Recovery and Reinvestment Act (aka â€œthe stimulusâ€) into law. While it is the largest spending bill in America’s history, and no one in Congress had fully read it, the much talked about perk for first time home buyers did make it into the bill. Here is a recap of what the final plan means for first time home buyers:

This is a better deal than I originally thought it was. I didn’t think the $15,000 credit which was rumored would ever fly. If you have been thinking or even dreaming about making your first home purchase, we are now in the perfect storm: high inventory, depressed prices, low interest rates, and not an $8,000 credit with very few strings attached! (In case you may have forgotten, I make my living as a real estate broker here in Memphis, so contact me if you have questions)

Today President Obama will travel to Phoenix, one of the Ground Zero locations of the housing crisis, to unveil his plan for housing relief. Should be interesting!

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Good News for First Time Home Buyers