Great Rate, Great Advantage, and 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
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 | 4.60% fixed rate, subject to change | 4.90% fixed rate, subject to change | 5.20% 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 | Maximum 1% on 1st mortgage | Maximum 1% on 1st mortgage | Maximum 1% on 1st mortgage |
| Discount Point | Maximum ¼% on 1st mortgage | Maximum ¼% on 1st mortgage | Maximum ¼% on 1st mortgage |
If you have any questions or need additional information, please contact Ed Lozier by email or at 615-815-2082.