Tennessee Housing Development Agency (THDA)
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:
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Great Rate
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Great Advantage
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Great Start
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Maximum Household Income
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Varies by County (see Sales Price & Income Limits)
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Varies by County (see Sales Price & Income Limits)
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Varies by County (see Sales Price & Income Limits)
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Maximum Sales Price (Including all incidentals)
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Varies by County (see Sales Price & Income Limits)
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Varies by County (see Sales Price & Income Limits)
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Varies by County (see Sales Price & Income Limits)
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Interest Rate
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4.98% fixed rate, subject to change
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5.28% fixed rate, subject to change
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5.58% fixed rate, subject to change
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Loan Term
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30 years (1st mortgage)
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30 years (1st mortgage)
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30 years (1st mortgage)
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Loan Types
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FHA, VA, USDA/RD, Conventional
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FHA, VA, USDA/RD, Conventional
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FHA, VA, USDA/RD, Conventional
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Mortgage Insurance or Guarantee
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As required by loan type
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As required by loan type
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As required by loan type
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Buydowns
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Not allowed
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Not allowed
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Not allowed
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Assumable
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Subject to qualifying
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Subject to qualifying
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Subject to qualifying
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Pre-Payment Penalty
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No penalty
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No penalty
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No penalty
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Subject to Recapture
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Yes
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Yes
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Yes
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Required Reserve
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As required by loan type
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As required by loan type
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As required by loan type
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Minimum Investment
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As required by loan type
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As required by loan type
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As required by loan type
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Closing Costs
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May come from Borrower, Seller, a gift, or as required by loan type
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2% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 2% assistance grant must be used.
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4% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 4% assistance grant must be used.
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Down Payment
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As required by loan type
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Homebuyer Education
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Not required
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Required
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Required
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Origination Fee
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Maximum 1% on 1st mortgage
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Maximum 1% on 1st mortgage
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Maximum 1% on 1st mortgage
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Discount Point
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Maximum ¼% on 1st mortgage
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Maximum ¼% on 1st mortgage
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Maximum ¼% on 1st mortgage
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Eligibility Requirements
Income and Cost Limits
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