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 offers two down payment assistance programs, the traditional Great Choice and the Hardest Hit Fund. Great Choice is 5% down payment and closing cost assistance in the form of 0% interest and $0 payment of second mortgage, which is forgiven after 30 years. The Hardest Hit Fund, for targeted areas, is a forgivable $15,000 second mortgage with 0% interest and $0 payment, and is forgivable after 10 years. An eight-hour, pre-purchase counseling course is required for all homebuyers receiving down-payment assistance.
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- Prior two years addresses and dates of residence.
- Social Security number or tax ID.
- Driver’s license or state issued identification card.
- Prior two years employment information including employer contact and dates of employment.
- Most recent W2 and pay stub for all income sources.
- Two years federal tax returns, including tax applicable schedules if you are self-employed, have rental income, farm income or additional non-W2 reported income.
- Alimony, child support or separate maintenance documentation if you wish to have it considered as basis for repaying this obligation.
- Additional information may be required such as Divorce decree (if applicable) and/or proof of extra income such as rental income, dividends, Social Security, retirement, disability, pension, or welfare (supporting documentation is required).
- Balance owed on all liens attached to the property including all mortgages as well as any home equity loans or lines of credit.
- Most recent mortgage statement (if applicable).
- Most recent property tax bill.
- Most recent hazard insurance declaration page.
- Most recent flood insurance declaration page (if applicable).
Liberty Financial mortgage lending product availability may vary based on property location.