THDA Homeownership for Heroes

What is THDA Homeownership for Heroes?

THDA Homeownership for Heroes is a second mortgage for homebuyers in Nashville, Tennessee, administered by Tennessee Housing Development Agency (THDA).

• Homeownership for Heroes is an enhanced THDA Great Choice Home Loan tier honoring military, veterans, and first responders. Eligible heroes receive a reduced first-mortgage interest rate, up to $15,000 or 5% of the purchase price in down payment assistance, and the ability to borrow up to 100% of the purchase price with a VA or USDA-RD loan (96.5% FHA). For qualified military and veterans, the first-time homebuyer requirement is waived statewide.
• Reduced first-mortgage interest rate for heroes.
• Up to $15,000 or 5% of purchase price in DPA.
• First-time buyer requirement waived for qualified military/veterans.
• Finance up to 100% with VA or USDA-RD.
• Statewide through THDA-approved lenders.
• Funding comes from Tennessee Housing Development Agency (state HFA bond program).

How much assistance does it provide?

THDA Homeownership for Heroes offers up to $15,000 in assistance.

• Award tiers: Heroes tier: reduced first-mortgage interest rate plus up to $15,000 or 5% of purchase price in DPA; FTHB requirement waived statewide for qualified military/veterans.
• The program can be combined with Bundled with the THDA Great Choice first mortgage and Great Choice Plus DPA.
• Amounts are the program's published maximums, not an offer — Tennessee Housing Development Agency (THDA) determines any individual award.

Do you have to pay it back?

THDA Homeownership for Heroes is a second mortgage and is repaid under the terms set by Tennessee Housing Development Agency (THDA).

• Repayment is triggered by DPA delivered through the Great Choice Plus second loan (deferred forgivable or amortizing) attached to the Great Choice first mortgage.
• The assistance is recorded in Second 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 Homeownership for Heroes is open to buyers who will live in the home as their primary residence.

What are the income limits?

THDA Homeownership for Heroes sets its income limit as follows: Follows standard THDA Great Choice income and acquisition-cost limits by county and household size; not restated on the Heroes flyer.

• 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?

THDA Homeownership for Heroes caps the purchase price as follows: Subject to THDA Great Choice acquisition-cost limits by county.

• Eligible property types include Single Family.

Is there eligibility for specific groups?

THDA Homeownership for Heroes names veterans, active-duty service members, reservists and National Guard members, law enforcement officers, firefighters, and healthcare workers 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?

THDA Homeownership for Heroes serves buyers purchasing in Nashville, Tennessee.

How do you apply?

Applications for THDA Homeownership for Heroes go through Tennessee Housing Development Agency (THDA), 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..

2. 2

   Contact Tennessee Housing Development Agency (THDA) to reserve funds

   Funds are reserved through Through THDA-approved lenders under greatchoicetn.com., 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.