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.

THDA Great Choice offers between $7,500 and $15,000 in assistance, depending on the award tier a homebuyer qualifies under. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

THDA Great Choice is forgiven after 30 years, so a homebuyer 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.

THDA Great Choice is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: 3+ years since last ownership; exceptions for targeted areas and disabled veterans. The program lists a minimum credit score of 640. A homebuyer education course is required.

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.

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.

THDA Great Choice serves homebuyers 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.

Applications for THDA Great Choice go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through First-Come-First-Served. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.