FIRST-TIME HOME BUYER
Most first-time buyers here do not have an income problem or a credit problem. They have a cash problem — earnest money, inspection, appraisal and a moving truck all landing in the same six weeks. There are programs built for exactly that, and most people never hear about them.
A fully underwritten pre-approval, so your offer actually competes.
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Almost never the things people worry about. Four real obstacles, all of which have a route around them.
You do not. Conventional starts at 3% for qualified first-time buyers, FHA at 3.5%, and VA and USDA can be zero. Waiting to save 20% usually costs more in appreciation than the mortgage insurance would have.
This is the real one. THDA and other down payment assistance programs exist specifically to bridge it, and gift funds from family are allowed on most programs.
First-time buyers lose houses to weak pre-approvals more often than to low offers. A fully underwritten pre-approval changes how a listing agent reads your file.
Escrow, PMI, rate locks, earnest money, appraisal gaps. None of it is complicated once someone explains it once, without condescending.
First-time buyers get the least attention from big lenders because the loans are smaller. That is precisely backwards — it is the transaction where guidance matters most.
The Arrowood Team offers a $5,000 Closing Guarantee. After a fully underwritten pre-approval we can issue a guarantee certificate, and if the loan does not close, Tim pays $1,000 to the borrower and $4,000 to the seller. Eligibility depends on the transaction — ask us whether it applies to yours, or read the full terms on our Closing Guarantee page.
The national average purchase closes in about 45 days. Our process targets 21 to 30, which is often the difference between winning a house and coming second.
We are at 119 Boone Ridge Dr in Johnson City. Tim Arrowood (NMLS #393468) personally works your file — no transferred queues, no loan officer who has moved on by underwriting.
If buying now is the wrong move — if six months of credit work would save you real money, or the payment would stretch you too far — we will say so. We would rather have you as a client in a year than as a foreclosure.
Four routes. The cheapest one depends on your credit, your service history and where the house is.
Best if your credit is strong. PMI applies until 20% equity and then comes off, which usually makes it the lowest lifetime cost. How conventional works.
Best if your credit is in the 580 to 680 range or your debt ratios are tight. The whole down payment can be gift funds. FHA in Johnson City.
If you or your spouse served, this is almost always the answer. No down payment, no monthly mortgage insurance. VA loans in the Tri-Cities.
Tennessee’s housing agency offers assistance toward down payment and closing costs on a first mortgage. Income and purchase price limits apply, and it is not automatic. How THDA works for Tri-Cities buyers.
Johnson City. The most competitive market in the region and where a weak pre-approval will cost you houses. Expect to compete; expect to need your financing to be genuinely ready before you tour.
Kingsport, Bristol and Jonesborough. Frequently better value per square foot and a slightly slower pace. Widening your search across the Tri-Cities rather than fixing on one town is often what makes the budget work.
Outside the city limits. Much of the surrounding countryside falls inside USDA-eligible rural boundaries, which can mean zero down. Worth checking the map before you rule out a commute.
Older homes. A lot of the affordable inventory here needs work. That is not a reason to walk away — the FHA 203(k) finances the purchase and the repairs together.
General guidelines. Most people are closer than they assume.
Not sure if you are ready? Call (423) 406-1567. It costs nothing to find out, and the answer might be sooner than you think.
1. How much do I really need for a down payment?
As little as 3% on a conventional loan for qualified first-time buyers, 3.5% on FHA, and zero on VA and USDA if you are eligible. The 20% figure is a myth that costs people years of waiting. What you should budget for beyond the down payment is closing costs, the inspection and the appraisal — that is where the real cash pressure sits, and it is what down payment assistance programs are designed to relieve.
2. What credit score do I need to buy my first home?
620 opens up conventional financing, and 580 gets you FHA at 3.5% down. Below 580 there are still routes, and if you are sitting just under a threshold we will tell you what would move you across it before you apply. A thirty-point improvement can change your rate and your mortgage insurance cost noticeably.
3. What is THDA and do I qualify?
The Tennessee Housing Development Agency offers down payment and closing cost assistance attached to a first mortgage. There are income limits and purchase price limits, and it is not automatic — you have to be put into the right loan structure from the start. It is one of the most underused resources for Tri-Cities buyers, largely because most lenders never bring it up.
4. Am I still a first-time buyer if I owned a home years ago?
Often yes. Most programs define a first-time buyer as someone who has not owned a principal residence in the previous three years. Divorced buyers and people who sold and rented for a while frequently qualify without realising it. Worth asking rather than assuming you are excluded.
5. How do I make my offer competitive without more money?
Get fully underwritten before you make an offer, not just pre-qualified. A listing agent can tell the difference immediately, and a file that has already been through an underwriter carries far more weight than a letter generated in two minutes. That is a materially different signal to a listing agent than a letter generated in two minutes.
6. What if the house I can afford needs work?
That is common here, and it is not a dealbreaker. The FHA 203(k) finances the purchase and the renovation in a single loan based on the after-improved value. Some of the best value in the Tri-Cities is in homes that have been sitting because they need a kitchen or a roof.
Tennessee: Johnson City, Kingsport, Bristol, Jonesborough, Elizabethton, Greeneville, Piney Flats and the surrounding Tri-Cities.
Virginia: Bristol and Southwest Virginia along the I-81 corridor.
Preferred Rate is licensed in AL, AZ, CA, CO, FL, GA, IL, IN, KS, KY, LA, MA, MD, MI, MO, MS, NC, OK, OR, TN, TX, VA, WA and WI, and operates under American Pacific Mortgage in NV. The Arrowood Team originates primarily in Tennessee and Southwest Virginia.
119 Boone Ridge Dr, Suite 203
Johnson City, TN 37615
(423) 406-1567
arrowoodteam@preferredrate.com
Fifteen minutes tells you what you can borrow, what the monthly payment really is, and which programs you qualify for. No credit pull required to start.
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THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIALMORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV
