Frequently asked questions

What’s in our FAQs?

This page has answers to common questions about THDA programs, services, and resources. Find quick and clear information on homebuying, renting, and more.

Single Family Programs
Community Housing
Community Services
Rental Assistance Programs
Multifamily Programs

Single Family Programs

Homeownership Choices

How do I find out if I qualify for down payment assistance?

THDA borrowers qualify for a THDA mortgage based on credit score (minimum of 640) and two additional requirements: household income limits and purchase price limits. Both numbers are a determining factor on how much home you can purchase and these figures can vary from county to county. To find out what the income and purchase price limits are in your county click here. If you want to learn more about the Great Choice Loan, click here. To learn more about THDA’s down payment assistance loan, click here.

The interest rates vary from time to time. To view the most current available interest rate click here.

THDA works with Lender across the state who are trained and approved for the THDA mortgage loan programs. You can find a full list of approved lenders by clicking here.

THDA works with area Realtors® across the state to provide THDA mortgage training. One of the first steps in finding a home would be establishing a relationship with a Realtor®. Click here to find a list of THDA-trained Realtors®.

Homebuyer Education

Do I have to take a homebuyer education class to close on my loan?

THDA requires homebuyer education for all THDA mortgage loan applicants and encourages it for everyone considering homeownership. THDA’s purpose is to not only assist people with purchasing homes, but also to help them become long-term, successful homeowners.

THDA works with non-profit housing counseling agencies to offer inexpensive homebuyer education classes. Class fees vary by individual agency and do not exceed $99. As an option to the classroom, THDA also offers an online course which may be taken at your own pace. The cost for the on-line class is $99. You can read more about choosing a class by clicking here.

Once the class has been completed, the certification is good for one year.

View More Homebuyer Education FAQs

Foreclosure Prevention

My home is being foreclosed on. Can you help?

THDA is a HUD-approved counseling agency with certified housing counselors who will have a confidential conversation with you to discuss your situation and will help you determine the best way to address your needs. If you are experiencing difficulty paying your mortgage or facing foreclosure, you may find more information and resources by clicking here.

If you are not in foreclosure, but know that you are reaching a point where you will no longer be able to make your mortgage payment, a credit counselor can offer guidance and options to assist in resolving your issues. To find a list of HUD Housing Counselor in Tennessee click here.

THDA provides training and helps with administrative costs for nonprofit organizations to assist you in your struggles with your current loan. If contact is made before the foreclosure process has begun, the approved credit counselors can provide you with guidance on the steps you need to take to best resolve your situation. If necessary, these counselors can serve as mediators for you with your mortgage company, allowing you to avoid some of the frustrations that often come with making difficult decisions.

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Community Housing

HOME Program

What is the HOME Program?

HOME is a federally-funded program administered by THDA to promote the production, preservation and rehabilitation of housing for households of low income. HOME funds are awarded annually through a competitive application process to cities, counties and non-profit organizations outside the local participating jurisdictions. Local Participating Jurisdictions (PJs) are those local governments in Tennessee that receive HOME funds directly from the US Dept. of Housing and Urban Development. The Local PJs are Clarksville, Chattanooga, Jackson, Knoxville, Memphis, Nashville-Davidson County, Knox County, Shelby County, and the Northeast Tennessee/Virginia Consortium (Bristol, Kingsport, Johnson City, Bluff City, Sullivan County and Washington County). Eligible housing activities include homeowner rehabilitation, homeownership programs, and rental programs, including supportive housing development by non-profit agencies for individuals or families dealing with physical disabilities, mental illness or developmental disabilities.

To become eligible for a HOME grant, a household must have an annual income at or below 80% of area median income as defined by the Section 8 Rental Assistance Program. The household must live within a community or county that has been awarded HOME funds or is served by a non-profit that has been awarded HOME funds. Each of the eligible housing activities has specific program requirements established by the HOME regulations.

Community Investment Tax Credit (CITC)

What is CITC?

Financial institutions may obtain a credit against the sum total of taxes imposed by the Franchise and Excise Tax Laws when qualified loans, qualified investments, grants or contributions are extended to eligible housing entities for engaging in eligible low income housing activities. The amount of the credit can be applied one time based on the total amount of the loan, investment, grant, or contribution; or the credit may be applied annually for qualified loans and qualified low rate loans based on the unpaid principal balance of the loan. The amount of the credit can be either 3%, 5%, or 10% as determined by the Tennessee Department of Revenue.

Activities that create or preserve affordable housing for Tennesseans of low income; activities that assist Tennesseans of low income in obtaining safe and affordable housing; activities that build the capacity of an eligible nonprofit organization to provide housing opportunities for Tennesseans of low income; any other low-income housing related activity approved by the THDA Executive Director and the Commissioner of Revenue.

Qualified loans defined as a loan at least 2% below the prime rate; qualified low-rate loans defined as a loan at least 4% below the prime rate; qualified long term investments extending for a period of more than 5 years; grants or contributions.

Tennessee-based nonprofit organizations with an Internal Revenue Code 501 (c) 3 status; Public Housing Authorities; Development Districts; Tennessee Housing Development Agency

Emergency Repair Program (ERP)

What is the Emergency Repair Program (ERP)?

The Emergency Repair Program (ERP) provides grants to low-income, elderly homeowners to correct, repair, or replace an essential system and/or a critical structural problem. The purpose of the program is to stabilize the elderly homeowner’s residence by making rapid, essential repairs to make the home livable. This is not a comprehensive homeowner rehabilitation program.

Applicants must meet all of the following requirements: The applicant must be at least 60 years of age and must occupy the property to be repaired as her/her principal residence. The applicant must have an ownership interest in the property to be repaired. If the property to be repaired is a manufactured housing unit, it is not necessary for the elderly homeowner to own the manufactured unit and the land on which it sits, the elderly homeowner must, however, have title to the manufactured unit. The household income must be at or below 60% of area median income as defined by the Section 8 Rental Assistance Program. Click here for income determination. Click here for the income limits.

The Emergency Repair Program is administered through Tennessee’s nine Development Districts. Click here to find the Development District that serves your area.

Tennessee Housing Trust Fund (THTF) Competitive Grants Program

What is the THTF Competitive Grants Program?

The Tennessee Housing Trust Competitive Grants address the housing needs of the very low-income, the very low income elderly and the very low income special needs populations of Tennessee. Local communities, non-profit agencies, human resource agencies, development districts, public housing authorities and other departments of state government are eligible to apply for the Competitive Grants. The eligible activities are rental housing programs (new construction; acquisition and/or rehabilitation, conversion) and homeownership programs (down payment programs or development of units for homeownership). The Competitive Grants program requires a 50% match.

The gross annual income of the tenant household must be at or below 80% of area median income as defined by the Section 8 Rental Assistance Program. Click here for income limits.

An individual would apply with the non-profit or other entity that received the THTF Competitive Grant. To determine if there are THTF funds in your area, contact Toni Shaw.

Home Modifications and RAMPs Program

What is the Home Modifications and Ramps Program?

The Home Modifications and Ramps Program (HMR) began as the Ramp Program in 1999 in partnership with United Cerebral Palsy of Middle Tennessee to ensure that no individual with a disability was confined to his/her residence because they could not afford a ramp. In 2010, the Ramp Program was expanded to include interior modifications for disabled households in addition to ramps for ingress and egress. The funds are awarded competitively every two years. United Cerebral Palsy was awarded the 2010 and the 2012 HMR grants, and the program operates on a state-wide basis through a network of partner agencies. HMR requires a 50% match for the THDA funds.

The disabled individuals must have gross annual income at or below 80% of area median income. The program serves both owner-occupied and tenant households.

An individual would contact United Cerebral Palsy of Middle Tennessee for the partner agency serving their area of residence.

Rebuild and Recover Disaster Grant

What is the Rebuild and Recover Disaster Grant Program?

The Rebuild and Recover Disaster Grant Program is the newest program in the Tennessee Housing Trust Fund and was approved by the THDA Board in March 2013 with an allocation of $2 million in THDA funds. The purpose of the program is to provide assistance to local communities impacted by a weather-related incident that does not rise to the level of a Presidential Disaster Declaration or a TEMA Declaration. The maximum grant to a community is $500,000. There is a 50% match requirement for the THDA funds.

Rebuild and Recover serves owner-occupied households at or below 80% of area median income to rehabilitate their housing not covered by insurance or other disaster relief programs. The program can also be used to demolish damaged structures or to relocate an owner-occupant.

In the event of a local disaster, the county or city mayor contacts THDA for an assessment of the damage, and the need for Rebuild and Recover.

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Community Services

Emergency Solutions Grant

What is the Emergency Solutions Grant Program?

The Emergency Solution Grant Program (ESG) is a federally-funded program administered by THDA to assist the homeless. The program helps improve the quality of existing emergency shelters; helps meet the costs of operating emergency shelters; provides street outreach to the homeless; and provides certain essential social services to the homeless so that they have access to supportive services. The program is also intended to decrease homelessness through the provision of preventive and rapid re-housing activities. ESG funds are awarded on a non-competitive basis to the Small City Entitlement Communities of Bristol, Clarksville, Cleveland, Franklin, Hendersonville, Jackson, Johnson City, Kingsport, Morristown, Murfreesboro, and Oak Ridge; and, on a competitive basis, to 501(c)(3) non-profit organizations outside the CDBG entitlement communities that receive their own ESG funding directly from the U. S. Department of Housing and Urban Development (HUD). The Tennessee communities that receive their own allocation of ESG funds from HUD are Chattanooga, Knoxville, Memphis and Nashville-Davidson County.

Individuals or families must meet the federal definition of homelessness or at risk of homelessness to be assisted through the ESG program. For homeless prevention programs, participants must have an annual income at or below 30% of area median income as defined by the Section 8 Rental Assistance Program and have no other identifiable resources.

Individuals apply directly to the emergency shelters and agencies funded by the ESG program. To determine if there are resources in your area, contact ESG@THDA.org for information.

Low Income Home Energy Assistance Program (LIHEAP)

What is the Low Income Home Energy Assistance Program?

The Low Income Home Energy Assistance Program (LIHEAP) is a federally-funded program administered by THDA to provide financial assistance to households of low income in their home energy costs. The LIHEAP funds are awarded to a network of 19 community service agencies serving all 95 counties in Tennessee. The program also allows for weatherization activities and intervention in energy crisis situations.

To be eligible for LIHEAP assistance, the gross annual income of the household cannot exceed 150% of the federal poverty standards. Priority is given to households with elderly, disabled or young children and an energy burden for heating and cooling assistance. LIHEAP crisis assistance provides services to households which are subject to life-threatening conditions without immediate intervention to address critical energy-related needs. A household can only receive one type of LIHEAP assistance in a program year.

Individuals apply directly to the community service agency serving the county in which they reside. Click here for a list of the LIHEAP agencies.

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Rental Assistance Programs

Housing Choice Voucher (HCV)

How do I get on the waiting list?

The Section 8 Housing Choice Voucher (HCV) program is a federally-funded program with limited funding. Applications are taken only when waiting lists are open and are completed online by online by clicking here.

You can check your area’s waiting list by clicking here.

THDA serves 72 counties across the state. We do not serve the larger metropolitan areas that receive their own vouchers such as: Davidson, Hamilton and Shelby counties. For a list of the counties served by THDA click here.

THDA maintains a list of available apartments, duplexes and single-family homes that can be accessed through TNHousingSearch.org. This site is constantly changing due to rental units being added frequently.

THDA does not have emergency shelter. For access to available emergency shelters in your area log onto TNHousingResource.org. This site is constantly changing due to resource options being added frequently.

Family Self Sufficiency (FSS)

What is Family Self Sufficiency (FSS)?

THDA staff works with HCV families to create step-by-step plans that lead to economic independence. The purpose of the FSS program is to facilitate access to the supportive services to assist families who want to become free of public assistance.

To participate, you must be on the HCV program. All HCV families are eligible to participate in the FSS program. To learn more click here.

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Multifamily Programs

Low Income Housing Tax Credits

What are Low Income Housing Tax Credits?

The Low Income Housing Tax Credit Program is a credit against federal income tax liability each year for 10 years for owners and investors in low-income rental housing. The amount of tax credits is based on reasonable costs of development, as determined by THDA, and the number of qualified low-income units.

To be eligible for tax credits, a development must have a minimum of either 20% of its units occupied by households with incomes no greater than 50% of area median income or 40% of its units occupied by households with incomes no greater than 60% of area median income. Income limits are adjusted for household size. Maximum rents are established for each size of unit, not to exceed 30% of the area maximum income for specified household sizes (utilities are considered part of rent if paid by the owner). All requirements of the relevant qualified allocation plan developed by THDA and approved by the Governor must also be met. To locate the most current version of the Qualified Allocated Plan click here.

A draft of the Qualified Allocated Plan is posted each year in October. There are workshops held by the Multifamily division staff to discuss changes and allow developers and investors to make comments which are submitted to THDA’s Board of Directors for review before the final version is posted in January. To find a Board Member in your area click here.

Project-Based Contract Administration

What is the Project-Based Contract Administration Program?

This is a performance based contract that THDA has with the US Department of Housing and Urban Development (HUD) for oversight of properties with Section 8 Housing Assistance Payment Contracts. For more details about this program click here.

There are properties available all across the state and you can locate them by clicking here and entering the county.

Complaints should be filed by contacting CGI.
Contact Numbers: Toll Free Phone No. for Resident Inquiries: 1-888-384-3540
TTY 800-848-0298; Spanish TTY 866-503-0263 (leave message after hours)
Fax: 614-985-1502
Written summaries: 8760 Orion Place, Suite 110, Columbus, Ohio 43240
Email: PBCAContactCenter@cgifederal.com
Hours of Operation: Monday-Friday, 8:00 am to 5:00 pm Central / 9:00 am to 6:00 pm Eastern

Program Compliance and Asset Management

What does the Program Compliance and Asset Management Division do?

THDA’s Program Compliance and Asset Management Division monitors properties that must commit to a compliance period to maintain funding levels. To learn more about this division contact Gwen Coffey, Director of Director of Compliance and Asset Management, at 615-815-2219.

The Program Compliance and Asset Management Division monitors federally- funded programs such as HOME, Low Income Housing Tax Credits and the Project Based properties. For more details regarding the compliance monitoring for each of these programs click here. For questions, contact Gwen Coffey, Director of Compliance and Asset Management, at 615-815-2219.

The most up to date HUD forms can be found in the two following places:
http://www.hud.gov – go to ‘A-Z Index’ in top right corner, go to ‘F’ and click on Forms.
http://www.hudclips.org – go to ‘Forms’ in top right corner.

On both sites, the forms are searchable by form number.

Discrimination, Housing and Banking Complaints

How do I file a complaint if I believe I have been discriminated against in housing?

If you or someone you know feels discriminated against when renting, buying or selling a home due to race, color, national origin, religion, sex/gender, familial status or a disability, you may file a complaint with the Tennessee Human Rights Commission or with the U.S. Department of Housing and Urban Development Fair Housing Enforcement Office. For more information, click here.

How do I file a complaint against banks, trust companies, credit unions, industrial loans and thrift offices, insurance premium finance companies, mortgage companies, check cashers, deferred presentment service companies, title pledge lenders and money transmitters?

If you would like to file a complaint against a financial institution, visit the Department of Financial Institutions website.

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