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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.
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