Freddie Mac HFA Advantage - Deferred

What is Freddie Mac HFA Advantage - Deferred?

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

• THDA's 4% conventional DPA paired with Freddie Mac HFA Advantage first mortgage; structured as a deferred 0% second mortgage with no monthly payment. Balance due at sale/refi/payoff. Statewide. 640 FICO, 45% DTI, $400K max purchase, county/HH-sized income limits ($60,160-$89,760).
• THDA's Freddie Mac HFA Advantage DPA - Deferred 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 carries 0% interest with NO monthly payments. The full principal balance is deferred and due in a balloon at the earlier of (a) sale, (b) refinance, (c) payoff of the first mortgage, (d) cease of owner-occupancy, or (e) end of the first mortgage term (typically 30 years). Funds may be applied to down payment and/or closing costs. Ideal for borrowers wanting to maximize monthly cash flow.
• Funding comes from State, Bond, and HFA.

How much assistance does it provide?

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

• Buyer contribution: Conventional 3% borrower contribution typical per HFA Advantage rules.
• 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 - Deferred is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full principal balance due at the earliest of: sale, refinance, payoff of first mortgage, cessation of owner-occupancy, or end of first mortgage term (typically 30 years). No monthly payments.
• 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 - Deferred is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Freddie Mac HFA Advantage - Deferred 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 - Deferred 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). 1-unit only.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

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

• The program targets specific areas: Federally designated targeted counties/census tracts where FTHB requirement is waived.

How do you apply?

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

1. 1

   Take a homebuyer education course

   Required by the program, through THDA-approved homebuyer education required prior to closing. Online via eHome America or in-person via HUD-approved housing counseling agencies. Certificate required at closing..

2. 2

   Contact the administering agency to reserve funds

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

3. 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.