Cash to Close Is the Real Wall. Here's How I Help Knock It Down.

Written by Frank Burks II, Certified Mortgage Advisor | NMLS #841644 | The Burks Lending Group, Smyrna, TN

Ask most renters what's stopping them from buying and they'll say the same thing: the down payment. But when I sit down with families across Smyrna, Murfreesboro, and Nashville, the number that really catches them off guard is a different one. It's the cash to close.

Down payment, closing costs, prepaid taxes and insurance, the appraisal. It all lands on the same page, and it can feel like a wall. I'm Frank Burks II, and my job is to make that wall shorter. Here's exactly how I do it.

What Is Cash to Close?

Cash to close is the total amount you bring to the closing table. It usually includes three things:

Your down payment:</strong> from 0% on VA and USDA loans to 3.5% on FHA and 3% to 5% on many conventional loans.

Closing costs: lender fees, title and settlement fees, recording fees, and the appraisal.

Prepaids: your first year of homeowners insurance, a few months of property taxes and insurance for your escrow account, and daily interest up to your first payment.

On a typical purchase in Middle Tennessee, closing costs and prepaids alone can add up to several thousand dollars on top of the down payment. That's the part most people never budget for. Your Loan Estimate spells it all out, and I walk every buyer through theirs line by line.

Tool #1: A 1% Lender Credit

On qualifying purchase loans, I give you a lender credit equal to 1% of your loan amount, applied toward your closing costs. It works on Conventional, FHA, VA, and USDA purchases.

Example: on a $290,000 loan, 1% is $2,900 back at the closing table.

The credit shows up right on your Loan Estimate and Closing Disclosure, so you can see it working. It can cover closing costs and prepaids, but it can't exceed your actual closing costs and it can't come back to you as cash. You'll see your rate and APR with the credit included, so you're comparing real numbers, not promises.

Tool #2: A $600 Appraisal Credit

Every purchase needs an appraisal, and the fee usually comes out of your pocket before closing. I credit $600 back to you at closing, so that money stays with you.

Put the two together on that $290,000 loan and you're looking at about $3,500 working in your favor before we even talk about assistance.

Tool #3: Down Payment Assistance

This is where it gets good. I have multiple down payment assistance programs, and I match each buyer to the one that fits their credit, income, and goals. Some are grants. Some are forgivable over time. Some are repayable seconds with friendly terms. The right one depends on your situation, not on a one-size-fits-all rule.

Assistance can often cover your down payment and sometimes part of your closing costs too. Stack it with the lender credit and appraisal credit, and the wall starts looking a whole lot shorter. 

My Tennessee down payment assistance guide breaks down how these programs work.

Don't Forget the Seller

In the right market, the seller can help too. Every loan type allows sellers to contribute toward your closing costs, up to program limits. 

FHA allows up to 6% of the price. 

VA lets the seller pay your normal closing costs plus up to 4% in concessions.

 Conventional limits depend on your down payment. Your Realtor negotiates it, and I make sure the numbers fit your loan.

Which Loan Gets You In With the Least Cash?

VA: zero down, no monthly mortgage insurance, and seller-paid costs are flexible. See my VA loan playbook

USDA: zero down in eligible areas across Middle Tennessee. See my guide to USDA loans in Middle Tennessee

FHA: 3.5% down with flexible credit, and it pairs well with assistance. See my guide to FHA loans in Tennessee

Conventional: as little as 3% to 5% down for strong credit profiles, and mortgage insurance that can come off later.

Not sure where your credit lands? Start with my guide on credit scores for buying a home in Tennessee

How to Claim Your Credits

1. Get pre-approved. We review your income, credit, and savings and build your plan.

2. Find your home and lock your loan. Your 1% lender credit and appraisal credit are applied when your loan is locked. No coupon, no extra application.

3. See them on your Closing Disclosure. Both credits appear on your final numbers, right where you can check them.

You can see the full details on my buyer incentives page

Frequently Asked Questions: Closing Cost Help in Tennessee

Q: What is cash to close when buying a home?

Cash to close is the total amount a buyer brings to closing. It includes the down payment, closing costs such as lender, title, and appraisal fees, and prepaid items like homeowners insurance, property taxes for the escrow account, and daily interest

Q: What is a lender credit?

A lender credit is money from the lender applied toward the borrower's closing costs. It appears on the Loan Estimate and Closing Disclosure, can cover closing costs and prepaid items, and cannot exceed actual closing costs or be paid to the borrower as cash.

Q: Which loans qualify for the 1 percent lender credit?

The 1 percent lender credit applies to qualifying purchase loans closed with The Burks Lending Group, including Conventional, FHA, VA, and USDA loans. On a 290,000 dollar loan, the credit equals 2,900 dollars toward closing costs.

Q: Can I combine a lender credit with down payment assistance?

Often, yes. Lender credits, seller concessions, and down payment assistance can work together to lower cash to close, subject to each program's rules and limits. The right combination depends on your loan type, credit, income, and the home you buy.

Q: How much can a seller pay toward closing costs in Tennessee?

It depends on the loan. FHA allows seller contributions up to 6 percent of the price. VA allows the seller to pay normal closing costs plus up to 4 percent in concessions. Conventional limits range from 2 to 9 percent depending on the down payment and occupancy.

Q: What is the least amount of money I need to buy a house in Tennessee?

VA and USDA loans allow zero down payment for eligible buyers, and FHA allows 3.5 percent down. With a lender credit, seller help, and down payment assistance, some buyers bring very little cash to closing, depending on their situation and the home.

Stop Saving for Someday

The wall isn't as tall as it looks. With the right loan, the right credits, and the right assistance, a lot of renters are closer to their keys than they think.

Start your journey Today!  Secure Application or call me at 615.364.5700 and let's build your buying plan. 

Rent money could be key money. Everybody deserves a key.

Lender credit equals 1% of the base loan amount; appraisal credit is $600. 

Both apply to qualifying purchase loans closed with The Burks Lending Group, are applied on your Closing Disclosure, cannot exceed allowable closing costs and have no cash value.

 Down payment assistance is subject to availability, funding and eligibility. 

Not a commitment to lend. All loans are subject to credit approval, underwriting and property eligibility. Terms subject to change.

Frank Burks II | Certified Mortgage Advisor | NMLS #841644</p>

The Burks Lending Group empowered by NEXA Lending | NMLS #1660690 | 615.364.5700

theburkslendinggroup.com | fburks@nexalending.com | Equal Housing Opportunity