The Great Choice Loan Program is designed to help first-time homebuyers overcome one of the greatest obstacles in the homeownership process, by helping to provide the money to cover the down payment and closing costs. 

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Great Choice Loan Program

Financial Assistance for Homebuyers in Tennessee

Tennessee Housing Development Agency (THDA)’s Great Choice Loan Program is designed to help first-time homebuyers overcome one of the greatest obstacles in the homeownership process, by helping to provide the money to cover the down payment and closing costs. The Great Choice Loan Program provides qualified applicants up to 4 percent down payment assistance to be used with either FHA, VA, USDA-Rural Development or uninsured conventional loans.

There are two parts to THDA’s program, the Great Choice and Great Choice Plus.
  • Great Choice is the 30-year, fixed rate mortgage loan referenced above.
  • Great Choice Plus is a 15-year, zero percent interest, deferred, second mortgage to provide homebuyers with down payment assistance up to 4 percent of the purchase price of the home.
Great Choice Plus is a zero percent interest, non-amortizing, deferred loan, with no monthly payments. The term of the loan is 15 years with a forgiveness feature that begins after the tenth year, and is fully forgiven at the end of the fifteenth year. The amount must be repaid only if the borrower chooses to sell the property before the 15 years are up, refinances the home.

Eligibility Requirements
The THDA requires that the following criteria be met to become eligible for the Great Choice Loan Program:
  • The THDA currently requires that applicants have a minimum credit score of 640. If a borrower’s score is lower than 640, THDA’s homebuyer education counselors can help you with strategies to raise their credit score
  • Great Choice Loans are designed for low to moderate income Tennesseans, therefore it is exclusive to household that fall under the set income limits, which are based on the size of household and county in which the home is being purchased.
  • Additionally, the Great Choice Loan Program is meant for modest homes, therefore maximum purchase price limits are set and vary by county.
  • THDA’s purpose is also to help applicants become long-term, successful homeowners, therefore it requires applicants to take a homebuyer education course before they can qualify for down payment assistance.

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. 

The Great Choice Loan Program is designed to help first-time homebuyers overcome one of the greatest obstacles in the homeownership process, by helping to provide the money to cover the down payment and closing costs. 

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.

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!