Nashville New Homes: Work Equity as your New Home Downpayment?

What is the one thing that everyone in this world has in common?   A FUTURE.  

That’s right…everyone has a future of some kind.   Although there are no guarantees in life, there are steps each one of us can take to make our future more stable and secure.  Owning a home is one such step that everyone can position themselves to take.  Your future really can be in your own hands.

Home mortgage criteria has changed a lot over the recent years, but that doesn’t mean it has to be more difficult to purchase a home.  It just means you have to provide more proof of your ability to be a responsible homeowner. 

FHA loans are the most widely used programs, where 3.5% of the purchase price is required as a downpayment, without exception. 

WAIT A MINUTE…. aren’t there ZERO DOWN home mortgages?  Technically, NO…. but actually…. YES! 

In Tennessee, there are loan programs where the Tennessee Housing Development Agency (www.THDA.org) will grant first-time buyers up to 4% of the purchase price to be used toward the downpayment and/or closing costs. 

If the seller of the property agrees to pay your closing costs, which Ole South will, you can use the THDA Great Start grant for your downpayment and administrative fees.   How does THDA do that?  What is the catch?

There is no catch.  The fixed interest rate for loans using the downpayment grants are slightly higher than those FHA loans with your actual down-payment.   If used responsibly, the Great Start program can be a very useful tool in financial planning. 

With today’s historicaly low interest rates, the money you would normally put down can be used to pay off other debts with higher interest rates.  A trusted mortgage professional can help you evaluate your options.  I happen to know many, so please let me know if you would like to know more.

There are other ways in addition to THDA to secure a downpayment.  You may have a relative or close friend that will give you the money, which has to be documented in the form of a gift letter affidavit that no repayment is required or expected.

And there is another provision that has been around a long time, but has basically been forgotten….WORK EQUITY.   Most builders hate it because it really is a pain in the ass to deal with.  BUT, it is a tool that can bring willing homebuyers to the closing table much quicker!  We offer the program at Ole South and you do not have to be a first-time buyer to participate!

FHA allows the seller to credit the buyer an amount up to $2.00 per heated square foot living area for painting the interior of the home, including all wood trim and doors.  The seller can also furnish the paint!  Please remember in your negotiating, that is the maximum allowed amount and the builder can get the same job done for 1/2 of that amount. 

You can also receive “work equity” credit toward your required downpayment for seeding and strawing your own lawn.  And the seller can furnish the grass seed and straw as well!

Lets do the math using an 1800 s/f,  $150,000 new home example, which Ole South offers plenty of choices.  (www.OleSouth.com

The required down-payment is $5,250.   Paint the home and you can receive $3,600 credit toward your downpayment.  You can seed and straw a typical new home yard and receive approximately $750.00 credit.  That leaves your total cash out of pocket at $900…. and you still get to take full advantage of the lowest rates available!

History proves that over time, owning is always better than renting.  Why not improve your financial future today by visiting one of our Middle Tennessee neighborhoods in Nashville, Smyrna, Murfreesboro, Spring Hill, and Clarksville?  Find out why thousands of home owners are proud to say:

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new homes in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, Clarksville, and Spring Hill, Tennessee

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Nashville New Homes: A new home or a puppy? Which is least expensive?

Back in February, I returned from a mission trip in Honduras to find out we were getting a puppy.  Here is Ruby, our new “Blue Doberman” at 6 weeks old.  (Notice she has floppy ears)

For those that are keeping up with the news regarding housing, things are really looking up for a change!   And the word is getting out too.  Read on…. http://money.usnews.com/money/blogs/flowchart/2011/03/28/one-sign-the-housing-bust-could-end-soon

Back to Ruby.  She is now 12 weeks old.  And her ears are now different.  (I always thought a Doberman came with pointed ears until now.)

To my point. 

We got Ruby on February 13.   She has now had her ears “clipped”  (which I still think is mean) and various other puppy charges,  and the responsibility of pet ownership has already set in.  And it adds up.

If someone bought a new home on February 13th, the first payment has still not come due.  And when it does, with today’s historically low interest rates, that payment will not break your budget.  After all, everyone has to live somewhere…why not in your own place?

FACT:  You can purchase a new home, and spend less cash than purchasing a puppy.

Here is a great example combining the purchase of a new home – and cash flow management. 

This brand new home in Rivendell Woods of Cane Ridge is all ready to be your next home, especially if you already have a puppy.  The back yard is already fenced in!  At 156,990, just bring your furniture and food.  Even the window blinds and all kitchen appliances are included.

What cash flow?  Using THDA’s “Great Start” program (www.thda.org) through Ole South Financial, you can move in this new home with ZERO cash out of pocket.   And your first payment will not be due until July, if you want to plan it that way!  Right now, you can own a brand new home in Nashville for less than $750/month, including taxes and HOA!

We’ve got a great selection of traditional homes and townhomes all over Middle Tennessee.  From 89,990 to 299,990, you are certain to find the perfect home for your needs.  And one that your puppy will like too! 

Call me anytime and let’s explore your many options!  If I cannot answer, please leave a message.  I’ll probably be taking Ruby out to pee!

Trey Lewis is a licensed Real Estate Broker in the State of Tennessee with Ole South Realty, 615.896.0019  direct 615.593.6340.  Specializing in new home sales in the Greater Nashville area to include Nashville, Murfreesboro, Smyrna, and Spring Hill, Tennessee