THDA Sets Record Number of Home Loan Applications
It was a record month for the Tennessee Housing Development Agency with 70 million dollars in home loan applications.
They attribute this to the hardest hit fund for down payment assistance program and the great choice home loan program.
“Our agency partnered with the treasury department to find out what we could do to help stabilize some neighborhoods across Tennessee, and we were granted 60 million dollars in federal funds to use on this program,” said Ella Harris, Customer Account Manager with THDA.
The funds were granted about a year ago and allow THDA to grant first time home buyers $15,000.00 for a down payment.
Realtors say the growth stems from people realizing there’s not much profit that can come from renting a home, but a lot that can come from buying a home.
“A renter only has receipts… the buyer, the one that buys has possible equity, could possible rent the house out later or possibly just sell and get some of their money back,” said Thomas Byrd with Byrd Realty.
Branch Manager at Supreme Lending, Tammy Barr, says the grant from THDA has caused a roughly thirty percent increase in home loan applications. And most of them, are younger consumers.
“Because of THDA its down payment assistance were seeing more and more that younger consumers are being educated,” said Barr.
Customer account manager for THDA says after the funds are gone, they still plan to provide 5% down payment assistance to first time home buyers.