A Guide to the Tennessee Housing Development Agency (THDA)

---

If you're dreaming of homeownership in Tennessee, the Tennessee Housing Development Agency (THDA) can offer the help you need to make it happen. Whether you're a first-time buyer or facing challenges with down payments, THDA’s programs provide excellent solutions. As a dedicated Mortgage Loan Officer with Gershman Mortgage, I’m here to guide you through these state-backed programs, helping you take advantage of all the benefits that can make homeownership more affordable.

What Is the Tennessee Housing Development Agency (THDA)?

The Tennessee Housing Development Agency (THDA) is a state agency established to improve the housing opportunities for Tennessee residents. THDA offers a variety of financial programs, including down payment assistance, affordable mortgage loans, and tax credit options for eligible homebuyers. These programs are tailored to first-time buyers, veterans, and low- to moderate-income individuals.

Key THDA Programs for Homebuyers

THDA has a range of programs designed to make homeownership more attainable for Tennesseans. Below, I’ll explain some of the most popular programs, their benefits, eligibility requirements, and how we can work together to make sure you’re maximizing your chances of approval.

1. Great Choice Home Loan Program

Overview: The Great Choice Home Loan program provides first-time homebuyers with a fixed-rate mortgage, offering competitive interest rates and the flexibility to pair with different types of loans, including FHA, VA, USDA, and conventional loans.

Benefits:

Fixed interest rate: Ensures consistent payments throughout the life of the loan.

Flexible options: Available with FHA, VA, USDA, and conventional loans, so you have multiple choices depending on your situation.

Affordable financing: Designed to make homeownership more affordable with lower-than-average interest rates.


Eligibility:

•First-time homebuyer or someone who hasn’t owned a home in the last three years (exceptions apply in some areas).

•Credit score: A minimum of 640.

•Income limits: Income limits vary by county and city, particularly in urban areas like Nashville.


2. Great Choice Plus Program

Overview: The Great Choice Plus program is an add-on to the Great Choice Home Loan, offering up to 6% of the purchase price in down payment assistance.

Benefits:

Down payment assistance: This second mortgage provides financial help up to 6% of the home's purchase price, easing upfront costs.

No monthly payments: The second mortgage is deferred, meaning there are no monthly payments; it's due when you sell, refinance, or pay off the first mortgage.


Eligibility:

•Same as the Great Choice Home Loan, but you must also meet additional eligibility requirements based on the home’s purchase price.


3. Homeownership for the Brave Program

Overview: The Homeownership for the Brave program is designed for veterans, active-duty military members, and surviving spouses, offering them access to a lower-interest-rate loan.

Benefits:

Discounted interest rate: Special lower rates for those who have served in the military.

Additional down payment help: Veterans may qualify for both the Great Choice Home Loan and the Great Choice Plus program, offering assistance with down payments and closing costs.


Eligibility:

•Available to active-duty military personnel, veterans, and surviving spouses.

•Must meet the same credit score and income requirements as other THDA programs.


4. Mortgage Credit Certificate (MCC)

Overview: The Mortgage Credit Certificate (MCC) helps you save on taxes by allowing you to claim a portion of your mortgage interest as a tax credit on your federal tax return.

Benefits:

Tax credit: Claim up to 50% of your mortgage interest (up to $2,000 annually) as a tax credit, which can lead to significant savings over time.

Works with most loans: You can use the MCC alongside conventional, FHA, VA, and USDA loans.


Eligibility:

•First-time homebuyer or buying in a targeted area.

•Income and home price limits apply, as with other THDA programs.

How Gershman Mortgage Can Help You Navigate THDA Programs

Navigating the complexities of THDA programs can feel overwhelming, but with my support, you don’t have to do it alone. I’m here to guide you through every step of the process, from choosing the right program to completing your application and ensuring you get the best financial assistance possible.

1. Prequalification and Eligibility Assessment

We’ll review your financial profile, including credit score and income, to determine which THDA programs you're eligible for. Together, we’ll set you up for success by selecting the best mortgage options for your needs.

2. Smooth Application Process

Applying for THDA programs can be complex, but I’m here to help. I’ll assist with paperwork, help you understand program requirements, and ensure your application is complete and submitted correctly.

3. Clarifying Program Details

Understanding the fine print is critical. I’ll explain the specifics of each program and its terms, ensuring you fully understand down payment assistance, tax credits, and loan obligations.

4. Local Expertise and Resources

I’m not just a loan officer—I’m your local guide to the Tennessee homebuying process. I can connect you with trusted local resources, including appraisers, inspectors, and real estate agents, to make the process as smooth as possible.

5. Long-Term Support

After your home closes, I’m still here to help. From refinancing to answering mortgage questions, I’m committed to supporting you through every phase of homeownership.

Why Choose Gershman Mortgage for THDA Programs?

When it comes to THDA programs, working with a knowledgeable, local loan officer has distinct advantages. As part of Gershman Mortgage, I understand the nuances of Tennessee’s real estate market and can provide customized advice to ensure you make the most of available resources. My goal is to build a long-term relationship, supporting you not just through the transaction, but through your entire homeownership journey.


---

Take the First Step Toward Your Tennessee Homeownership Dream

The Tennessee Housing Development Agency (THDA) offers invaluable programs that can make homeownership more affordable. Whether you need a down payment, tax credits, or a lower interest rate, THDA has solutions for you.

If you’re ready to explore your options, or if you want to learn more about how these programs work, don’t hesitate to contact me today. As your local Gershman Mortgage Loan Officer, I’ll help you make the most of these programs and get you closer to your dream home in Tennessee.


---

Contact me today, and let’s get started on your homeownership journey!