Tennessee Housing Development Agency (THDA) loans make home ownership a reality for many people in Tennessee. THDA's Great Choice Loan Program offers 30-year, fixed rate mortgages and down payment assistance to eligible first-time, repeat and military homebuyers. Borrowers must meet certain requirements and conditions, involving credit history, income limits and cost of home.
While THDA is not a direct lender, the agency does work with approved mortgage lenders from across Tennessee to originate its loans. THDA underwrites loan applications and commits to purchase pre-approved loans after they are closed and documented.
Created to promote the production of more affordable new housing units for low and moderate income individuals and families in the state, THDA promotes the preservation and rehabilitation of existing housing units. Their general purpose is to assure the availability of housing for Tennessee residents. THDA loans have provided financing to over 100,000 first-time homebuyers in Tennessee.
THDA serves as the primary administrator for numerous federal and state housing programs. The agency is authorized to issue tax-exempt Mortgage Revenue Bonds to support financing opportunities for first-time homebuyers and veterans in Tennessee. THDA purchases qualified home loans originated through its private lending partners. THDA loans all have 30-year, fixed-rate terms and offer a maximum grant of 4% in down-payment assistance. An eight-hour, pre-purchase counseling course is required for all homebuyers receiving down-payment assistance.
First Liberty Mortgage is a THDA-approved lender. Contact us today to discuss whether a THDA loan would be the right option for you.