Mortgage Loan Guide

Why an FHA Loan?

FHA (Federal Housing Administration) loans are designed for the buyer who wants to buy a home with the least amount of cash at closing and not qualify for VA or USDA. You do not have to be a first time buyer to use FHA. Also, you can use FHA for every home you buy as long as you only own one home with FHA at a time. FHA generally will be one of the easiest mortgage loans to qualify for and rates are great with good credit scores.

• Fixed Rate Loans
• 3.5% Down payment available
• Gift funds permitted
• Seller can only pay 6% closing costs
• 1.75% Upfront mortgage insurance financed
• 85% Monthly mortgage insurance
• No income limits



Why a USDA Loan?

USDA (United States Dept of Agriculture) is a wonderful loan program for the buyer who selects an eligible property based on the property address. The program offers a zero down payment for those who qualify and the seller can contribute up to 6% of the sales price towards closing costs and pre-paid items.

Income varies due to country and family size. Income has to be verified from all members of the household who receive any form of income including social security payments.

• 30 Year fixed rate only
• Zero down payment
• Gift funds permitted
• Seller can pay up to 6% closing costs
• You cannot own any other property
• You must occupy the home
• Location restrictions apply
• Low 1% guarantee fee financed
• Household income set by country
• No flipping rules



Why a VA Loan?

VA (Veterans Administration) loans are for buyers who have served in the US Armed Forces. Both Active or Reserves are often eligible for a VA loan. VA determines the eligibility. These are great loans as they do not require a down payment and there is no monthly mortgage insurance fee. If you have served in the US Armed Forces give the mortgage team at CCB a call and we will assist you in determining your qualification for a VA Loan.

VA only guarantees the loan, they do not loan the money and they have certain income and credit guidelines needed to qualify, as do most loan programs.

• Up to 30 Year fixed rate
• Zero down payment up allowable state limit
• Gift funds permitted
• Seller can pay up to 4% closing costs
• VA Funding Fee: 0 with disability. All other funding fees according to COE
• Gift funds permitted
• No income limits
• Seller must provide clear termite inspection letter



Why a Conventional Loan?

The typical loan buyer would choose a conventional loan program if their credit scores are above average and are used by buyers who normally wish to pay more than the minimum down payment. Keep in mind , conventional loan rates and mortgage insurance is priced depending on middle credit score and the loan amount.

Conventional loans require mortgage insurance on a monthly basis if the down payment is less than 20%.

• Fixed Rate Loans
• 3% Down payment available
• Gift funds permitted
• Seller can only pay 2-6% closing costs
• No income limits



Why a THDA Loan?

THDA (Tennessee Housing Development Agency) is Tennessee's housing finance agency. Created in 1973, THDA was founded to promote the production of affordable housing for low/modest income borrowers.

• Eligible for 5% grant for down payment assistance and closing costs
• Can be attached to Conventional, FHA, VA and Rural Development programs
• Seller can pay closing costs per each program
• For first time buyers unless you're a veteran or in a designated area
• Household income limits based on country


Loan approval and terms are dependent upon borrowers credit, documented ability to repay, acceptability of collateral property and underwriting criteria. USDA loans have location restrictions and income limits.For more info on Rural Development loans including RD eligibility please visit

VA loans require borrowers to have VA eligibility through the Veterans Administration. For more info visit