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THDA Great Choice

Tennessee

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Assistance

$7,500

The maximum the program publishes — not an offer

Income limit

115% AMI

Of area median income; varies by county and household size

Price cap

$400,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 30 years

What is THDA Great Choice?

THDA Great Choice is a forgivable loan for homebuyers in Tennessee.

  • Tennessee Housing Development Agency's Great Choice Plus DPA provides up to $7,500 as a forgivable second mortgage to help cover down payment and closing costs. The loan is forgiven at the end of the 30-year term but must be repaid in full if the home is sold or refinanced before 30 years. Must be used with a THDA Great Choice first mortgage.
  • Up to $7,500 forgivable second mortgage for down payment and closing costs.
  • Fully forgiven at end of 30-year term.
  • No monthly payments on DPA.
  • 0% interest rate on second mortgage.
  • Must be paired with THDA Great Choice first mortgage.
  • Available statewide in all 95 Tennessee counties.
  • Expanded limits in targeted census tracts.
  • Funding comes from State.

How much assistance does it provide?

THDA Great Choice offers between $7,500 and $15,000 in assistance, depending on the award tier a buyer qualifies under.

  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

THDA Great Choice is forgiven after 30 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale and Refinance.
  • 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?

THDA Great Choice 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: 3+ years since last ownership; exceptions for targeted areas and disabled veterans
  • The home is occupied as a primary residence
  • A minimum 640 credit score
  • A completed homebuyer education course

The program excludes

  • Purchases above the $400,000 price cap
  • Households above 115% of area median income

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?

THDA Great Choice limits household income to 115% of the area median income, which varies by county and household size.

  • 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?

THDA Great Choice caps the purchase price at $400,000.

  • Eligible property types include Single Family, Condo, Townhouse, and New Construction.
  • New construction is eligible.

Where does it apply?

THDA Great Choice serves buyers purchasing anywhere in Tennessee.

  • The program targets specific areas: THDA-designated targeted census tracts allow expanded income and purchase price limits and repeat homebuyers may qualify.

How do you apply?

Applications for THDA Great Choice 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 before funds are reserved.

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-Come-First-Served, 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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