Tennessee Housing Development Agency (THDA) created the Great Choice Home Loan, a fixed rate, 30-year mortgage option, to help Tennesseans achieve their dreams of owning a home with affordable financing.

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Great Choice Plus

Financial Assistance for Homebuyers in Tennessee

Tennessee Housing Development Agency (THDA) created the Great Choice Home Loan, a fixed rate, 30-year mortgage option, to help Tennesseans achieve their dreams of owning a home with affordable financing. Not only does the loan allow individuals to borrow up to 96.5 percent of the purchase price, but qualifying for it also makes you eligible for Great Choice Plus, THDA’s down payment assistance program.

Great Choice Plus is a second mortgage that allows applicants to borrow up to an additional 5 percent of the property price, which is put toward covering down payment and closing costs. This second loan comes with no interest and no monthly payments. Borrowers don’t have to repay the loan unless they decide to sell, refinance, or move out of the property, and even in that case they only pay the amount they borrowed, with no interest payments. In some cases, the loan is forgiven completely, which means that borrowers don’t have to pay back the money at all.

Homebuyer Education
In addition to staying compliant with the terms of the first mortgage (Great Choice Home Loan), applicants are required to attend and complete a pre-purchase homebuyer education course from a THDA-approved instructor to qualify for the Great Choice Plus program. The homebuyer course teaches applicants how to select the best house, what questions to ask when shopping for a home, how to qualify for a mortgage, and all that’s involved in maintaining a home after the purchase.

Eligibility Requirements
The Great Choice Plus program is available to first-time homebuyers, repeat homebuyers, and military and veteran homebuyers, as long as they are approved for a Great Choice Home Loan.

Borrowers need to have a minimum credit score of 640 (There is the option of speaking with a THDA-certified counselor who helps borrowers find ways of improving their credit scores).
The total household income must fall under the annual limit, which varies by county and household size.The property cannot exceed the maximum purchase price of the county. spacer

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Tennessee

The City of Clarksville’s Office of Housing and Community Development established the First Time Home-Buyers Program, which is designed to help income-eligible applicants with down payment and closing cost assistance to purchase their first home within the City of Clarksville. 

Tennessee Housing Development Agency (THDA) created the Great Choice Home Loan, a fixed rate, 30-year mortgage option, to help Tennesseans achieve their dreams of owning a home with affordable financing.

This program is for THDA’s Great Choice Home Loan borrowers purchasing an existing home in a ZIP codes that were hit hardest during the economic downturn and are recovering slower than other areas across the state.

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FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!