frequently asked questions

What is an FHA Loan?

What is a Conventional Loan?

What is an FHA Loan?

 The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes.  The down payment for a FHA  loans is 3.5%.  

What is a VA Loan?

What is a Conventional Loan?

What is an FHA Loan?

VA-backed Veterans home loans can help Veterans, service members, and their survivors to buy, build, improve, or refinance a home. The VA  guarantee (or stand behind) a portion of the loan you get from a private lender. Some benefits of  VA loans are: No down payment, Better interest rates, No private mortgage insurance, Fewer closing cost.  

What is a Conventional Loan?

What is a Conventional Loan?

What is Down Payment Assistance (DPA)?

  A conventional loan is a mortgage that is not guaranteed or insured by any government agency, for example FHA and  VA. It is typically fixed in its terms and rate.  However, conventional loans also allow down payments as low as 3%. Your lender or Fannie Mae  are good sources for more information.

What is Down Payment Assistance (DPA)?

What is Down Payment Assistance (DPA)?

What is Down Payment Assistance (DPA)?

 Down payment assistance programs   provide a set amount of money to qualified homebuyers. Homebuyers can use the money to cover their down payment  and/or closing costs .  The most widely used ones in the Memphis area is the Tennessee Housing Development Agency (THDA) and the City of Memphis DPA program,  some local lenders also have in house DPA programs.

For more information right click on the links below.

 https://thda.org/ 

 https://memphistn.gov/government/housing_and_community_development/dpa 


Why do I need a Home Inspection

What is Down Payment Assistance (DPA)?

Why do I need a Home Inspection

A home inspection is part of the buyer's due diligence during the purchasing process. It is recommended that the buyer hire a professional home inspector  to look at the house's interior and exterior, Heating and Air Conditioning  system, interior plumbing and electrical systems, roof, attic, floors. windows and doors, foundation, basement and structural components to see if there are any issues. Once completed the inspector provide a written report and pictures of the results. If repairs are needed, your realtor will start the negotiations with the other side based on your recommendations.  Based on the complexity of the concerns additional professionals may need to be hired.

What is the Appraisal for?

What is Down Payment Assistance (DPA)?

Why do I need a Home Inspection

 Before approving a loan.The lender will send an appraiser out to determine if the current value of a property will support the accepted asking  price. The appraiser will conduct an on site visit taking pictures and measurements of the interior and exterior. They will notate any amenities, updates/upgrades done to the property. They will also look like properties in the area to support their evaluation. The appraiser will look at current market conditions , most recent listing and sales. In some cases it may require the listing agent to provide additional information to the appr. The appraiser will submit his/her report to the lender with their recommendation and any repairs if needed.