Special Loan Program For 1st Time Buyers In TN
Looking to purchase your 1st residence in Tennessee but find yourself at a loss as to where to turn for a mortgage loan? Look no further. First time home buyer loans in Tennessee are provided by the Tennessee Housing Development Agency (THDA). Not only do they provide below-market rates on your mortgage loan, they also provide other considerable programs for 1st time home buyers.
Here are some details on THDA’s loan program:
How does Great Choice work?
THDA offers 30-year, fixed interest rate mortgage loans and an option for downpayment assistance to qualified first-time homebuyers in Tennessee. Since the home purchase process can be costly and complex, THDA requires applicants to take a homebuyer education course before closing on a loan providing downpayment assistance. THDA recognizes the value of homebuyer education and encourages it for all consumers considering homeownership. THDA’s purpose is not only to assist people with purchasing homes, but also to help them become long-term, successful homeowners.
- Click here to learn more about the Great Choice Loan Program.
- Click here to learn more about homebuyer education.
- Click here to find a THDA-approved class scheduled in your area.
- Click here to register for an approved online homebuyer education course.
How do I qualify for a Great Choice loan?
The following list outlines the minimum qualifications needed for the Great Choice Mortgage Program:
- Satisfactory credit history. THDA currently requires a 640 credit score. To find out your credit score, contact one of our approved lenders in your area. If your score is lower than 640, our homebuyer education counselors can help you with strategies to raise your credit score.
- Household income not above maximum limits. Great Choice Loans are designed for low to moderate income Tennesseans. Income limits are based on the size of your household and county in which you will be purchasing your home. To see a list of maximum income limits by county, please click here.
- Purchase Price of home not above maximum limits. The Great Choice Loan Program is meant for modest homes, therefore maximum purchase price limits are in place and vary by county. To see a list of maximum purchase price limits by county, please click here.
For complete details on this loan, including contact information and instructions on how to apply, please visit this THDA loan information page.
More Tennessee First Time Buyer Resources
In addition to the above first time homebuyer loan from THDA, there are resources available as well. Be sure to visit Tennessee down payment assistance, as well as our page that shares details about grants available in TN to purchase your first home.