Bootcamp For Buyers

Tennessee Great Choice Home Loan Program

The Tennessee Great Choice Home Loan Program, administered by the Tennessee Housing Development Agency (THDA), is designed to help eligible homebuyers achieve affordable and sustainable homeownership. By offering fixed-rate mortgage options and financial assistance, the program reduces financial barriers for residents across Tennessee.

Benefits

  • Offers 30-year fixed-rate mortgages with competitive interest rates, ensuring stable and predictable monthly payments.
  • Provides access to down payment and closing cost assistance, reducing upfront expenses for eligible buyers.
  • Supports first-time homebuyers and repeat buyers purchasing in federally designated targeted areas.
  • Includes options for reduced private mortgage insurance (PMI), lowering overall monthly housing costs.
  • Can be paired with other THDA programs for additional financial support and flexibility.

Eligibility Requirements

  • Applicants must meet income and purchase price limits, which vary based on household size and property location within Tennessee.
  • The property must be located in Tennessee and used as the buyer’s primary residence.
  • A minimum credit score of 640 is typically required, with lender-specific underwriting criteria also applicable.
  • Participants must not exceed program-defined debt-to-income ratios to ensure affordability and financial readiness.
  • Completion of a THDA-approved homebuyer education course is required to prepare for the responsibilities of owning a home.

Additional Information

The Tennessee Great Choice Home Loan Program is an essential resource for residents seeking to achieve homeownership while reducing upfront financial challenges. By providing affordable mortgage options and financial assistance, this program empowers eligible buyers to secure stable housing and build long-term equity. Administered by the Tennessee Housing Development Agency, the initiative promotes sustainable homeownership and strengthens communities across the state.

Frequently Asked Questions About Our Program

What is the Tennessee Great Choice Home Loan Program?

The Tennessee Great Choice Home Loan Program offers affordable 30-year fixed-rate mortgages for eligible first-time and repeat homebuyers, along with down payment assistance to help cover upfront costs.

Who qualifies for the Great Choice Home Loan Program?

Eligibility is based on income limits, credit score, and whether the home is purchased as a primary residence. Both first-time buyers and repeat buyers in targeted areas may qualify.

What is the down payment assistance offered by the program?

The program provides up to $6,000 in down payment and closing cost assistance, structured as a second mortgage with zero interest and deferred payments as long as the home remains the buyer’s primary residence.

Do I need to be a first-time homebuyer to qualify?

First-time homebuyers qualify statewide, but repeat buyers can also qualify if purchasing in targeted areas or meeting other program criteria.

What is the minimum credit score required?

The program requires a minimum credit score of 640 to qualify, though higher scores may improve eligibility and loan terms.

Are there income limits for the program?

Yes, income limits vary based on household size and the county where the property is located. These limits are updated annually to reflect economic conditions.

What types of properties are eligible for the program?

Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they meet specific guidelines and are permanently affixed to a foundation.

Don't miss out!

Check out our program and get started today.

Get Started Now

What is the maximum purchase price allowed?

As of 2025, the maximum purchase price varies by county but generally ranges from $300,000 to $500,000, depending on program criteria.

Does the down payment assistance need to be repaid?

The assistance is provided as a deferred second mortgage with zero interest. Repayment is required only if the buyer sells, refinances, or moves out of the home before the loan is forgiven.

Is homebuyer education required for this program?

Yes, completing a homebuyer education course is mandatory to help buyers understand the financial and practical responsibilities of owning a home.

Are there debt-to-income (DTI) ratio requirements?

The maximum allowable DTI ratio is typically 45%, though exceptions may be made for borrowers with strong credit or other compensating factors.

Can the program help with closing costs?

Yes, the down payment assistance can be applied to both down payment and closing costs, reducing the upfront financial burden of purchasing a home.

Can this program be used for newly constructed homes?

Yes, newly constructed homes are eligible as long as they meet the program’s purchase price and property guidelines.

Are there location restrictions for properties?

Yes, the property must be located in Tennessee and meet program requirements for eligibility and type.

Don't miss out!

Check out our program and get started today.

Get Started Now

Are there fees associated with the program?

Standard mortgage-related fees, such as origination and processing fees, may apply. These costs should be reviewed with your lender during the application process.

Can the Great Choice Home Loan Program be combined with other assistance programs?

Yes, the program can often be combined with other state or local assistance programs to provide additional financial benefits for eligible buyers.

How does the deferred second mortgage work?

The deferred second mortgage allows buyers to receive assistance without making payments on it while living in the home. Repayment is only required if the buyer moves, sells, or refinances.

Can this program be used with FHA, VA, or USDA loans?

Yes, the Great Choice Home Loan Program can be used with FHA, VA, USDA, and conventional loans, provided the property and buyer meet program requirements.

What are the benefits of the Great Choice Home Loan Program?

The program provides affordable mortgage rates, down payment assistance, and homebuyer education, making it easier for Tennesseans to achieve and sustain homeownership.

What is the process for applying to the Great Choice Home Loan Program?

Applicants work with an approved lender who will verify eligibility, guide them through the application process, and assist with securing both the loan and down payment assistance.

Get More Information

By clicking Submit, you agree that Bootcamp For Buyers, its affiliates, or associated third parties may contact you via emails, calls or texts, including via automated means. You also agree to our Terms of Use and Privacy Policy.