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Tennessee Housing Development Agency Loan in Mudlick, SC
The Tennessee Housing Development Agency (THDA) was created in 1973 to help low-income individuals and families obtain affordable home loans. THDA is the primary financing agency for the state of Tennessee and is responsible for the administration of a number of federal and state housing programs. This entity consists of a 16-member board of directors that is accountable to both the legislative and executive branches of government.
THDA is not a direct lender, but instead, THDA buys qualified home loans from private lenders. Some of the goals of the THDA include:
- Promote the manufacturing of affordable housing for those with very low and low-to-moderate income.
- Promote long-term homeownership.
- Bring stability to Tennessee’s residential construction industry.
- Provide socio-economic growth for businesses and social programs related to the residential construction industry.
- Preserve and revive existing housing units for individuals with low-to-moderate income.
- Help qualify citizens with rental assistance.
THDA Loan Programs
Great Choice and Great Choice Plus are home loans offered by the THDA. The Great Choice program works in conjunction with USDA, VA, FHA, or uninsured conventional loans. The Great Choice loan is a 30-year, fixed-rate mortgage. The Great Choice Plus is a 15-year, second mortgage. There are certain income and credit history requirements a borrower needs to meet to obtain a Great Choice or Great Choice Plus loan option. The program also requires owner-occupancy for the life of the loan.
Great Choice Home Loan
This loan option offers down payment assistance to first-time homebuyers. Before closing on this loan, borrowers are required to take homebuyer education courses. These courses familiarize them with the complicated process of taking out a THDA loan.
Advantages of a THDA Loan
- Promotes stable housing costs. THDA loans are designed to stimulate the economy by stimulating the real estate industry. Fixed-rate mortgages can provide long-term, predictable housing costs.
- Tax benefits. Property taxes and loan interest that you pay on your mortgage are tax deductible, decreasing income tax expenses.
- Equity. Homeownership is a great way to build equity. Many experts believe that owning a home is the best way to build long-term wealth. If the market increases, so will the value of your home. If you decide to sell your home at any time, you may be able to profit from the equity in your home.
- Own your own home. Why rent when you can pay a comparable price to own your own home? Owning the home means you define the rules and can make changes or have privileges that renting would not permit.
