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Great Choice Plus - Deferred

Statewide, Tennessee

Last verified
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Assistance

$15,000

The maximum the program publishes — not an offer

Income limit

$160,720

The household income limit the program publishes

Price cap

$400,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Great Choice Plus - Deferred?

Great Choice Plus - Deferred is a deferred second loan for homebuyers in Statewide, Tennessee.

  • THDA's 5% Great Choice Plus DPA paired with Great Choice FHA/VA/USDA first mortgage; structured as a deferred 0% second mortgage with no monthly payment. Balance due at sale/refi/payoff. 640 FICO minimum, $400K max purchase, county/HH-sized income limits ($92,300-$160,720).
  • THDA's Great Choice Plus DPA - Deferred variant - provides 5% of the home's sales price as a second mortgage paired with a THDA Great Choice FHA, VA, or USDA-RD first mortgage. The DPA second carries 0% interest with NO monthly payments. The full principal balance is deferred and due as a balloon payment at the earlier of (a) sale, (b) refinance, (c) payoff of first mortgage, (d) cease of owner-occupancy, or (e) end of first mortgage term (typically 30 years). Funds may be applied to down payment and/or closing costs.
  • Funding comes from State, Bond, and HFA.

How much assistance does it provide?

Great Choice Plus - Deferred offers up to $15,000 in assistance.

  • Buyer contribution: Per first-mortgage product (3.5% FHA, 0% VA/USDA).
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Great Choice Plus - 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. 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?

Great Choice Plus - Deferred 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: FTHB requirement waived in federally designated targeted counties/tracts and for qualified veterans / active-duty service members.
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO.
  • A completed homebuyer education course, through THDA-approved homebuyer education (eHome America online or HUD-approved counseling agencies); certificate required at closing.
  • Residency: Property in Tennessee; primary residence.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien.
  • Borrower must obtain a THDA Great Choice first mortgage (FHA, VA, or USDA-RD). First-time homebuyer required, except in federally designated targeted areas or for veterans/active-duty. Minimum 640 FICO. Max 45% DTI. Income within THDA Great Choice limits ($92,300-$160,720 by county/HH size). Max acquisition cost $400,000. THDA-approved homebuyer education required. Recorded second mortgage; full balance due on sale, refi, payoff, or non-occupancy.

The program excludes

  • Purchases above the $400,000 price cap
  • Households above $160,720

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?

Great Choice Plus - Deferred limits household income to $160,720.

  • 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?

Great Choice Plus - Deferred caps the purchase price at $400,000.

  • Eligible property types include Single-family detached, condominium (FHA/VA/USDA-eligible), townhouse, PUD, manufactured home on permanent foundation. 1-unit only.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Great Choice Plus - 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?

Great Choice Plus - Deferred serves buyers purchasing in Statewide, Tennessee.

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

How do you apply?

Applications for Great Choice Plus - Deferred 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 (eHome America online or HUD-approved counseling agencies); certificate required at closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through THDA Lender Online portal at time of rate lock., 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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