Need a THDA Loan? Here's How You Can Get Approved
Posted by : Admin
Low- to moderate-income individuals and families can apply for affordable home loans through the Tennessee Housing Development Agency (THDA) loan program’s Great Choice Home Loan.
What Is a THDA Great Choice Home Loan?
Although each loan’s specific terms will vary based on the borrower and unique loan request, THDA Great Choice Home Loans all feature the following terms:
- 30-Year Repayment Term – Monthly payments on all Great Choice Home Loans are spread out over a 30-year term. This means that your home will be paid off after making 360 affordable monthly mortgage payments.
- Fixed Interest Rate – Some home loans feature adjustable interest rates, which means the interest rate and payment amount fluctuate based on the market. With a Great Choice Home Loan, your interest rate will always remain the same. This means your monthly principle and interest payment will also stay fixed for the loan’s entire 30-year term.
Who Qualifies for a THDA Great Choice Home Loan?
The THDA exists to make home financing more accessible to low-income individuals and families. Here are some minimum requirements that borrowers must meet in order to qualify.
- Minimum Credit Score – The minimum credit score requirement for all loan applicants to qualify for a Great Choice Home Loan is 640. If your FICO credit score or your partners is below 640, we recommend speaking with a THDA-certified financial counselor for advice on what you can do to improve your financial situation in order to qualify for financing.
- Maximum Household Income – The THDA restricts the maximum income borrowers can have in order to qualify for a Great Choice Home Loan based on county and number of household members.
- Maximum Purchase Price – The THDA also sets limitations on purchase prices that qualify for the mortgage program. These prices are also geographically divided and related to the THDA’s income specifications.
- Primary Residence – Borrowers must maintain the home as their primary residence for the life of the loan.
What About Making a Down Payment?
If you qualify for a Great Choice Home loan from the THDA, then you also have the option to apply for financial assistance with your down payment and/or closing costs. This assistance is provided through an interest-free, payment-free second mortgage on your home. While you are not required to make payments toward this loan balance, it must be repaid upon moving or selling the home.
Apply for a THDA Great Choice Home Loan Today
The THDA makes Great Choice Home Loans available to all types of borrowers, including first-time homebuyers, current homeowners, active military personnel, veterans and their spouses.
If you live in Tennessee and have struggled to find an affordable path to long-term homeownership, we encourage you to contact a loan representative at Mortgage Investors Group. We can help you improve your financial situation and obtain affordable financing on a THDA home loan that fits both your lifestyle and your financial goals.
