Tennessee Housing Development Agency (THDA) and down payment assistance

The Tennessee Housing Development Agency (THDA) is the state’s housing finance agency. Their goal is to promote home ownership in the state of Tennessee by supporting the production of affordable housing, the preservation and rehabilitation of existing housing and developing mortgage programs to help more first time home buyers buy homes.

On this page, we’ll focus on the THDA programs that can help you buy a home in Tennessee. We’ll break down the benefits, requirements and next steps for you to take to use a THDA program to buy a home.

We’ll cover three main THDA program options on this page: THDA Great Choice, THDA Great Choice Plus, and Homeownership for Heroes.

THDA Great Choice and Great Choice Plus

THDA Great Choice is a homeownership program created by the THDA to support first time homebuyers in Tennessee. Here we will breakdown what you need to know about the program and answer questions on program benefits and qualifications.

What is the term of the THDA Great Choice Home Loan?

THDA Great Choice Home Loans come with a 30 year Term and a fixed interest rate.

What is the Minimum Credit Score for Great Choice Home Loan?

The minimum credit score for THDA Great Choice is 640. Many lenders will take the middle score of the buyer with the lower credit score.

What are the income and purchase price limits for Great Choice Home Loans?

The income limits and purchase price limits for Great Choice Home Loans depend on county and family size. Income limits range from $83,800 to $139,720. Purchase price limits for Great Choice Home Loans are $400,000.

What is the minimum down payment for Great Choice Home Loans?

Most Great Choice Home Loans are FHA loans, so the minimum down payment is 3.5%.

What down payment assistance is available with Great Choice Home Loans?

Home buyers who use Great Choice Home Loans can pair the first mortgage with a THDA Great Choice Plus second loan for down payment assistance.

There are two types of down payment assistance available: deferred payment (no payments) and amortizing (payments). Under deferred option, you can get $6,000 in the form of a forgivable second mortgage. Under the amortizing option, you can 5% of the sales price with a maximum of $15,000, but you have to pay interest.

How do I find a lender to see if I qualify for a Great Choice Home Loan?

Stairs Financial can help you find a lender to see if you qualify for Great Choice Home Loans and many other loan products with down payment assistance and other benefits for home buyers.

THDA Homeownership for Heroes

THDA Homeownership for Heroes is a mortgage program desigend to help servicemembers and home buyers in certain professions. If you are an active duty military, national guard, veteran, law enforcement officer, EMT, paramedic or firefighter, the THDA Homeownership for Heroes plan might be for you. Here we will breakdown what you need to know about the program and answer questions on program benefits and qualifications.

What is the term of the THDA Homeownership for Heroes?

THDA Homeownership for Heroes come with a 30 year Term and a fixed interest rate. Furthermore, the Homeownership for Heroes program comes with a reduced interest rate by half percentage point.

What is the Minimum Credit Score for Homeownership for Heroes?

The minimum credit score for THDA Great Choice is 640. Many lenders will take the middle score of the buyer with the lower credit score.

What are the income and purchase price limits for Homeownership for Heroes?

The income limits and purchase price limits for Homeownership for Heroes depend on county and family size. Income limits range from $83,800 to $139,720. Purchase price limits for Great Choice Home Loans are $400,000.

What down payment assistance is available with Homeownership for Heroes?

Home buyers who use Homeownership for Heroes can pair the first mortgage with a THDA Great Choice Plus second loan for down payment assistance.

There are two types of down payment assistance available: deferred payment (no payments) and amortizing (payments). Under deferred option, you can get $6,000 in the form of a forgivable second mortgage. Under the amortizing option, you can 5% of the sales price with a maximum of $15,000, but you have to pay interest.

How do I find a lender to see if I qualify for a Homeownership for Heroes?

Stairs Financial can help you find a lender to see if you qualify for Homeownership for Heroes and many other home buyer programs with down payment assistance and other benefits for home buyers.