Great Start, Great Advantage, and Stimulus Loan Mortgage Programs

THDA's Homeownership programs are designed for low- and moderate-income borrowers. The Great Advantage program -- available with or without Stimulus Loan -- offers a slightly higher interest rate loan secured by a first mortgage offering downpayment and closing cost assistance of 2%. The Great Start program offers a loan at a slightly higher interest rate, secured by a first mortgage, but offers assistance with down payment and closing costs of 4%. The Stimulus second mortgage program -- available only in conjunction with Great Rate and Great Advantage -- offers assistance with downpayment and closing costs of up to 3.5% of the property's purchase price.

	Great Start	Great Advantage	Stimulus Loan
Maximum Household Income	Varies by County (see Acqusition Cost & Income Limits)	Varies by County(see Acqusition Cost & Income Limits)	Varies by County (see Acqusition Cost & Income Limits)
Maximum Acquisition Cost(Including all incidentals)	Varies by County (see Acqusition Cost & Income Limits)	Varies by County (see Acqusition Cost & Income Limits)	Varies by County (see Acqusition Cost & Income Limits)
Interest Rate	5.60% fixed rate, subject to change	5.30% fixed rate, subject to change	Fixed rate at1% above the 1st mortgage rate
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
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	N/A
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 and Downpayment Assistance	4% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 4% assistance grant must be used.	2% of loan amount available to borrower(s) as assistance with down payment and closing costs.  The entire 2% assistance grant must be used.	Second mortgage up to 3.5% of the property's purchase price, used in conjunction with Great Rate or Great Advantage.
Homebuyer Education	Required	Required	Required
Origination Fee	Maximum 1% on 1st mortgage	Maximum 1% on 1st mortgage	Normal and customary
Discount Point	Maximum ¼% on 1st mortgage	Maximum ¼% on 1st mortgage	Not permitted

If you have any questions or need additional information, please contact Ed Lozier by email or at 615-815-2082.