THDA Homeownership Programs
Homeownership Choices
THDA offers 30-year, fixed rate mortgages and downpayment assistance to first-time homebuyers. A first-time homebuyer is considered anyone who has not owned his or her principal residence in the last three years, anyone buying in special targeted areas, or an honorably discharged or re-enlisted veteran and spouse. Not every borrower is eligible for a THDA mortgage. Borrowers must have satisfactory credit and the home must meet certain conditions.THDA's Homeownership programs are designed for low- and moderate-income borrowers. The Great Rate Mortgage Program offers a below market interest rate loan secured by a first mortgage. Great Advantage and Great Start offer loans at slightly higher interest rates, secured by a first mortgage, but offer assistance with downpayment and closing cost.
Downpayment and Closing Cost Assistance
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 Save (Refinance)
This program is designed for low- and moderate-income borrowers who currently have an adjustable rate mortgage loan on their principal residence that was made after December 31, 2001, and before January 1, 2008, that, as determined by THDA, would be reasonably likely to cause a financial hardship to the borrower if not refinanced (“Qualified Adjustable Rate Mortgage Loan”).Stimulus Program (Second Mortgage)
THDA is implementing this new second mortgage program for downpayment and closing cost assistance. This program will complement THDA's existing Homeownership Choices incorporating the American Recovery and Reinvestment Tax Act First Time Homebuyer Tax Credit (Form 5405). In order to be eligible for the second mortgage program, THDA MUST be providing funding for the first mortgage through the Great Rate or Great Advantage programs for the borrower(s) to purchase the home. Both the first and second mortgage must close on or before November 30, 2009. The November 30, 2009, date also applies to new construction. The new home must be complete and the loan closed on or before November 30, 2009.Preserve Loan Mortgage Program (Home Improvement)
In conjunction with public/private partnerships, THDA has implemented a new home improvement loan program. Preserve loans are available to eligible low- and moderate- income homeowners whose primary residence is located in Middle Tennessee and Madison County in West Tennessee for eligible rehabilitation and home improvement activities.New Start Loan Program (New Construction)
The New Start program is designed to promote the construction of new homes for low and very low income Tennesseans. This program will be delivered through non-profit organizations with established programs for the construction of single family housing for low and very low income households. The New Start Program Partner is responsible for selecting the homebuyer, determining eligibility, constructing the home, providing homebuyer education, originating and servicing the New Start Loan.If you have any questions or need additional information, please contact Ed Lozier by email or at 615-815-2082.