We believe that owning a home should be within reach for all Tennesseans, and the Tennessee Housing Development Agency (THDA) shares this vision. THDA is dedicated to providing fixed-rate mortgage loans for first-time homebuyers and promoting the creation of new, affordable housing units for households with very low to moderate income. If you’re looking to make the leap to homeownership, THDA’s Great Choice Home Loan program may be the perfect fit for you.
Great Choice Mortgage Loan Program
THDA’s Great Choice Home Loan program is designed to provide affordable and flexible mortgage financing for first-time homebuyers in Tennessee. Here’s what you can expect from this program:
- Affordability: The program often includes low-interest loans and down payment assistance, making homeownership more accessible.
- Eligibility: Household income and purchase price limits may vary by county, so it’s crucial to check the specific requirements in your area.
- Primary Residence: You must purchase and occupy the home as your primary residence within 60 days of closing.
- First-Time Homebuyer: The Great Choice Home Loan program is tailored to first-time homebuyers.
- Fixed Rate: You can enjoy the stability of a fixed-rate mortgage with a 30-year term.
- Minimum Credit Score: A minimum credit score of 640 is required to qualify.
- Maximum Loan to Value (LTV): On a Conventional loan, the maximum LTV is 78%. FHA, VA, and USDA loans follow guidelines for maximum LTV, ranging from 96.5% to 100%.
Great Choice Plus Mortgage Program
This program offers a second mortgage for down payment assistance.
Great Choice Plus – Down Payment Assistance
If you qualify for a Great Choice Home Loan, you can also benefit from down payment assistance through the Great Choice Plus second loan. This assistance can help with your down payment and/or closing costs. You have two options to choose from:
Deferred Option (No Payments)
- You’ll receive $6,000 in the form of a forgivable second mortgage loan on your home.
- This loan comes with a 0% interest rate, and payments are deferred until the end of the 30-year term, at which point the loan is forgiven.
- The loan will be due in full at the time the home is refinanced or sold.
Amortizing Option (Payment)
- This option provides 6% of the sales price in the form of a second mortgage loan on your home.
- Payments are made in monthly installments over 30 years at an interest rate that matches the first mortgage rate.
- The loan may also be used to pay closing costs.
- Homebuyer Education is required from a THDA-approved method.
Homeownership for Heroes Mortgage Loan Program
For our heroes who serve our communities, the Homeownership for Heroes Mortgage Loan Program is designed to provide support to:
- Active Duty Military, National Guard, and Veterans
- State and Local Law Enforcement Officers
- EMTs and Paramedics
This program offers the following benefits
- Borrow up to 100% of the home’s purchase price with a VA or USDA-RD loan or 96.5% with FHA loans.
- A minimum credit score of 640 is required.
- Household income and purchase price limits may vary by county.
- Down Payment Assistance: Homeownership for Heroes includes the option for our Great Choice Plus financial assistance, covering loan-related expenses, including down payment (if borrowing less than 100%) and/or closing costs.
Ready to get started?
At CBM Mortgage, we’re committed to helping you navigate the Tennessee Housing Development Agency’s Great Choice and Homeownership for Heroes programs. With our expertise and personalized service, your path to affordable homeownership in Tennessee has never been clearer. Don’t miss the opportunity to make your dreams a reality with us. Contact our team today to learn more and get started on your homeownership journey with confidence — or start an application online now:
Additional terms and conditions apply. All approvals subject to underwriting guidelines. Not all applicants will qualify.
This is an advertisement and not a commitment to lend.