Tennessee Great Choice Home Loan Program Guide

Guide to the Tennessee Great Choice Home Loan Program

The Tennessee Great Choice Home Loan Program offers affordable mortgage options and down payment assistance to help eligible buyers achieve homeownership. With competitive fixed interest rates and additional financial support, this program is designed to make homeownership more accessible for first-time buyers and others who meet the eligibility criteria. Below is a detailed guide to the program’s features, requirements, and application process for 2025.

1. Program Overview:

• Purpose: The Great Choice Home Loan Program provides affordable 30-year fixed-rate mortgages to reduce the financial barriers to homeownership.
• Loan Terms: The program features predictable fixed monthly payments over the life of the loan, ensuring long-term affordability.
• Additional Assistance: Buyers may also qualify for the Great Choice Plus option, which offers down payment and closing cost assistance.

2. Eligibility Requirements for 2025:

To qualify for the Tennessee Great Choice Home Loan Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is designed for first-time buyers, defined as individuals who have not owned a home in the past three years. Exceptions may apply for buyers in targeted areas.
• Income Limits: Household income must fall within the program’s limits, which vary by location and household size. These limits are updated annually.
• Credit Score: Applicants must have a minimum credit score of 640. Additional underwriting guidelines may apply based on the lender’s requirements.
• Property Requirements: Eligible properties must be located in Tennessee, used as the buyer’s primary residence, and meet program price limits.
• Homebuyer Education: Completion of an approved homebuyer education course is required to ensure buyers are prepared for the responsibilities of homeownership.

3. How to Apply:

Follow these steps to apply for the Tennessee Great Choice Home Loan Program:

• Assigned Loan Officer: After starting the application process, a loan officer will be assigned to assist you. They will verify your eligibility, explain the program benefits, and guide you through each step of the application process.
• Prepare Required Documentation: Gather documentation such as proof of income, tax returns, credit history, and property details.
• Submit Your Application: Work with your assigned loan officer to complete and submit your application. They will process your information and notify you of your approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. This course provides essential knowledge about budgeting, understanding mortgages, and managing homeownership responsibilities.
• Course Availability: The course is available online or in person. Upon completion, participants receive a certificate to include with their loan application.

5. Key Benefits of the Great Choice Home Loan Program:

• Affordable Fixed Rates: The program offers competitive fixed interest rates, making monthly payments predictable and manageable.
• Down Payment Assistance: Eligible buyers can access additional support through the Great Choice Plus option, which provides funds for down payments and closing costs.
• Designed for First-Time Buyers: The program addresses the unique needs of first-time homebuyers, offering financial and educational support to ease the transition into homeownership.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your assigned loan officer will guide you through the next steps, including reviewing loan terms, signing necessary documents, and preparing for closing.
• Closing Costs: While the program provides assistance with upfront costs, buyers may still be responsible for certain expenses. Your loan officer will provide a detailed breakdown of these costs.

The Tennessee Great Choice Home Loan Program is an excellent resource for eligible homebuyers seeking affordable mortgage solutions and financial support for upfront costs. With predictable rates and additional assistance options, this program helps Tennessee residents take a significant step toward homeownership. Begin your journey with the Tennessee Great Choice Home Loan Program in 2025.