About Great Choice Home Loans:
THDA created the Great Choice Home Loan programs to make homeownership available and affordable for Tennesseans of middle/moderate income.
- 30-Year Term – Your monthly payments are spread out across 30 years to keep them affordable.
- Fixed Interest Rate – The interest rate never changes throughout the entire life of the loan.
- Minimum Credit Score – The credit score of everyone on your loan application must be at least 640. If you do not know your credit store, your lender can check for you. If your credit score does not meet the minimum requirement, you can work with a THDA-Approved Counselor to improve your score.
- Household income and purchase price limits – The maximum of your total household income and the price you can pay for a home and still qualify for the Great Choice Home Loan program varies by county. See the full chart of income and purchase price limits.
- Down Payment Assistance – Most Great Choice Home Loans are insured by FHA or USDA-RD, which means you may be eligible to borrow up to 96.5% of the total price of the home you’re buying. This means you need a minimum of 3.5% for a down payment. You can use our Great Choice Plus down payment assistance for any loan-related costs, including your down payment and/or closing costs.
- Conventional home loan product with down payment assistance – Freddie Mac HFA Advantage®
- Off-Site Manufactured Housing – You can use your Great Choice Home Loan to purchase off-site manufactured homes!
Next Steps:
If a Great Choice Home Loan sounds like it might be right for you, we encourage you to start by attending a homebuyer education class. This class is required for down payment assistance. THDA manages a network of approved homeownership counselors who teach and certify approved homebuyer education classes.
Homeownership for Heroes
THDA celebrates and honors the men and women who serve with the Homeownership for Heroes program. This program that offers all the benefits of our Great Choice Home Loan along with the following:
- Reduced interest rate by up to a half percentage point (varies)
- Waive requirements to be a first-time homeowner in all areas of Tennessee for qualified military or veterans
- Borrow up to 100% of home’s purchase price with a VA or USDA-RD loan or 96.5% with FHA loans
To qualify, participants must be:
- Active-duty Military, National Guard, and Veterans
- State and local law enforcement officers
- EMTs/Paramedics
- Firefighters
Repeat Homebuyers
THDA created the Great Choice Home Loan program to make homeownership available and affordable for first-time homebuyers, but repeat homebuyers can participate if you meet any of the following qualifications:
- Have not lived in a home you own for at least three years
- Buying in one of 43 targeted counties
- Buying in a designated areas in 15 additional counties
- Qualified military and/or spouse.
THDA works with Lenders and REALTORS® across the state who are trained and approved for the Great Choice Home Loan program.