State programs and practical first steps
First Time Home Buyer Help in Tennessee
Buying your first home can feel like a lot. The good news is that Tennessee has a state housing agency with programs designed for first time buyers. Here is an overview. Program terms change, so always confirm the current details at thda.org and with an approved lender.
The THDA Great Choice Home Loan
The Tennessee Housing Development Agency, or THDA, offers the Great Choice Home Loan. According to THDA:
- It is a 30 year, fixed rate mortgage.
- Everyone on the loan needs a credit score of at least 640.
- Household income and purchase price limits apply, and they vary by county.
- Homebuyer education is required.
Who counts as a first time buyer
THDA defines a first time homebuyer as someone who has not owned and occupied their principal residence in the past three years. THDA says that requirement is waived in certain targeted counties and areas, and repeat buyers may qualify there or as qualified military.
Down payment assistance
If you qualify for a Great Choice loan, THDA offers Great Choice Plus, a second loan that can help with your down payment and closing costs. THDA lists both a deferred option and an amortizing option. Check the down payment assistance page for the current amounts and terms.
Homeownership for Heroes
THDA also offers Homeownership for Heroes, with a reduced interest rate, for qualified groups that include active duty military, National Guard, veterans, firefighters, EMTs and paramedics, law enforcement, emergency dispatchers and full time teachers. See the THDA site for eligibility.
Homebuyer education
THDA requires homebuyer education for its loans and offers classes through approved counselors as well as an online option. Even if you use another loan, a class is a great way to learn the process.
First steps I recommend
- Check your credit and pay down revolving debt if you can.
- Save for a down payment, closing costs and a small cushion.
- Talk with a THDA approved lender, and compare at least one other loan option.
- Take a homebuyer education class.
- Decide on your must haves before you start touring.
How I help first time buyers
I explain each step before it happens, help you understand what is normal in an inspection, and keep your lender and closing agent on the same page. Read my step by step buying guide, then request my buyer guide below.
Common questions
What is the THDA Great Choice Home Loan?
A 30 year fixed rate mortgage from the Tennessee Housing Development Agency for eligible buyers, with a 640 minimum credit score and county income and price limits.
Who is a first time homebuyer for THDA?
Someone who has not owned and occupied their principal residence in the past three years. The requirement is waived in targeted areas.
Does THDA offer down payment assistance?
Yes. Great Choice Plus is a second loan that can help with down payment and closing costs for eligible Great Choice borrowers.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.