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Homeownership Choices

Great Rate, Great Advantage & Great Start Mortgage Programs
THDA's Homeownership programs are designed for low- and moderate-income borrowers. The Great Rate program offers a below market interest rate loan secured by a first mortgage. The Great Advantage and Great Start programs offer a loan at a slightly higher interest rate, secured by a first mortgage, but offer assistance with down payment and closing costs. Each loan program is described below.

Program Details Great Rate Great Advantage Great Start
Maximum Household Income Varies by County (see Sales Price & Income Limits) Varies by County (see Sales Price & Income Limits) Varies by County (see Sales Price & Income Limits)
Maximum Sales Price (Including all incidentals) Varies by County (see Sales Price & Income Limits) Varies by County (see Sales Price & Income Limits) Varies by County (see Sales Price & Income Limits)
Interest Rate 3.60% fixed rate, subject to change 3.90% fixed rate, subject to change 4.20% fixed rate, subject to change
Loan Term 30 years (1st mortgage) 30 years (1st mortgage) 30 years (1st mortgage)
Loan Types FHA, VA, USDA/RD, Conventional FHA, VA, USDA/RD, Conventional FHA, VA, USDA/RD, Conventional
Mortgage Insurance or Guarantee As required by loan type As required by loan type As required by loan type
Buydowns Not allowed Not allowed Not allowed
Assumable Subject to qualifying Subject to qualifying Subject to qualifying
Pre-Payment Penalty No penalty No penalty No penalty
Subject to Recapture Yes Yes Yes
Required Reserve As required by loan type As required by loan type As required by loan type
Minimum Investment As required by loan type As required by loan type As required by loan type
Closing Costs May come from Borrower, Seller, a gift, or as required by loan type 2% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 2% assistance grant must be used. 4% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 4% assistance grant must be used.
Down Payment As required by loan type
Homebuyer Education Not required Required Required
Origination Fee Up to 2% maximum Up to 2% maximum Up to 2% maximum
Discount Point Maximum ¼% on 1st mortgage Maximum ¼% on 1st mortgage Maximum ¼% on 1st mortgage