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Freddie Mac HFA Advantage - Amortizing

Statewide, Tennessee

Last verified
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Assistance

$15,000

The maximum the program publishes — not an offer

Income limit

$89,760

The household income limit the program publishes

Price cap

$400,000

Highest purchase price the program allows

Repayment

Repayable

Repaid on the terms set by the administering agency

What is Freddie Mac HFA Advantage - Amortizing?

Freddie Mac HFA Advantage - Amortizing is a repayable second loan for homebuyers in Statewide, Tennessee.

  • THDA's 4% conventional DPA paired with Freddie Mac HFA Advantage first mortgage; structured as a 15-year amortizing second mortgage at the first-mortgage rate. Statewide. 640 FICO minimum, 45% DTI, $400K max purchase price, county/HH-sized income limits ($60,160-$89,760 range).
  • THDA's Freddie Mac HFA Advantage DPA - Amortizing variant - provides 4% of the home's sales price as a second mortgage paired with a THDA Freddie Mac HFA Advantage conventional first mortgage. The DPA second is amortized over a 15-year term at the same interest rate as the first mortgage, with a regular monthly principal and interest payment alongside the first mortgage. Funds may be applied to down payment and/or closing costs. The HFA Advantage product offers reduced mortgage insurance coverage and below-market MI rates for income-eligible borrowers, making it the preferred conventional option for moderate-income TN buyers.
  • Funding comes from State, Bond, and HFA.

How much assistance does it provide?

Freddie Mac HFA Advantage - Amortizing offers up to $15,000 in assistance.

  • Buyer contribution: Conventional 3% borrower contribution typical (may be partly satisfied by gift funds per HFA Advantage rules); verify with originating lender.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Freddie Mac HFA Advantage - Amortizing is a repayable second loan and is repaid under the terms set by the administering agency.

  • Repayment is triggered by Monthly amortizing second mortgage and principal and interest payments due each month for 15 years alongside the first mortgage. Balance also due in full on sale, refinance, or transfer of the property.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Freddie Mac HFA Advantage - Amortizing is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer requirement waived in federally designated targeted counties/census tracts.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO; some lenders/products may require 660+ per overlay.
  • A completed homebuyer education course, through THDA-approved homebuyer education required prior to closing. Approved providers include THDA-approved counseling agencies, eHome America online course (preferred for online), and HUD-approved housing counseling agencies statewide. Certificate of completion required at closing.
  • Residency: Property must be located in Tennessee and used as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per Freddie Mac and THDA guidelines.
  • Borrower must obtain a THDA Freddie Mac HFA Advantage first mortgage (conventional). First-time homebuyer required, except in federally designated targeted counties/census tracts (FTHB requirement waived). Minimum 640 FICO. Maximum 45% DTI per AUS approval. Owner-occupied primary residence within Tennessee. Income within THDA's HFA Advantage household income limits ($60,160-$89,760 depending on county and household size; verify current schedule at thda.org). Maximum acquisition cost (purchase price) $400,000 statewide. Required THDA-approved homebuyer education with certificate at closing. DPA is a recorded second mortgage; subordination per THDA policy.

The program excludes

  • Purchases above the $400,000 price cap
  • Households above $89,760

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Freddie Mac HFA Advantage - Amortizing limits household income to $89,760.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Freddie Mac HFA Advantage - Amortizing caps the purchase price at $400,000.

  • Eligible property types include Single-family detached, condominium (Freddie-eligible), townhouse, PUD, manufactured home (per Freddie HFA Advantage rules). 1-unit only typically.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Freddie Mac HFA Advantage - Amortizing names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Freddie Mac HFA Advantage - Amortizing serves buyers purchasing in Statewide, Tennessee.

  • The program targets specific areas: Federally designated targeted counties/census tracts (per IRS) where FTHB requirement is waived and elevated income/purchase-price limits may apply.

How do you apply?

Applications for Freddie Mac HFA Advantage - Amortizing go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through THDA-approved homebuyer education required prior to closing. Approved providers include THDA-approved counseling agencies, eHome America online course (preferred for online), and HUD-approved housing counseling agencies statewide. Certificate of completion required at closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through THDA Lender Online portal by approved Originating Agent at time of rate lock; subject to bond/funding availability., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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