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Tennessee Housing Development Authority (THDA) Mortgage Program

Do you need help paying a down payment, mortgage, or closing costs for your new home?

Quick Facts
What is it?
The Tennessee Housing Development Agency 'THDA' mortgage program offers help and counseling for those who want to buy their own home. There are two types of assistance available:
  • The Great Rate mortgage program offers a low-interest loan.
  • The Great Start mortgage program offers a loan at a slightly higher interest rate than the Great Rate mortgage program, but helps buyers pay their down payment and home buying costs.
What do you get?
Under both programs, the buyer gets a mortgage at an interest rate that is lower than the current market rate. In addition, a Great Start buyer may qualify to receive cash toward their down payment and 'closing costs' such as the origination fee, attorney's fee, taxes, escrow, and charges for obtaining title insurance and a survey.

How long do you get it?
All mortgages are for 30-year terms at a fixed interest rate. However, under the program, you can make extra payments to the bank in order to pay off your mortgage more quickly. Also, if you move and sell your home to a new buyer, you will be able to transfer your mortgage to the buyer, as long as he/she qualifies under the THDA program. If you sell your home to a non-qualified THDA buyer within 9 years of purchasing the home you may not be eligible to retain all the profit from the sale.