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Tennessee Housing Development Agency Loan

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 several 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. As THDA’s #1 Lender since 2003, MIG is ready to help you get into your dream home using one of THDA’s loan programs.

Click here to see the UPDATED THDA Income Limits by County


 

Great Choice Home Loans:

  • 30-Year Term - Your monthly payments are spread out across 30 years to keep them affordable.
  • Fixed Interest Rate - The interest rate never changes throughout the entire life of the loan.
  • Minimum Credit Score - The credit score of everyone on your loan application must be at least 640. If you do not know your credit store, your lender can check for you. If your credit score does not meet the minimum requirement, you can work with a THDA-Approved Counselor to improve your score.
  • Household income and purchase price limits - The maximum of your total household income and the price you can pay for a home and still qualify for the Great Choice Home Loan program varies by county. See the full chart of income and purchase price limits.
  • Down Payment Assistance - Most Great Choice Home Loans are insured by FHA or USDA-RD, which means you may be eligible to borrow up to 96.5% of the total price of the home you’re buying. This means you need a minimum of 3.5% for a down payment. You can use our Great Choice Plus down payment assistance for any loan-related costs, including your down payment and/or closing costs.
  • Off-Site Manufactured Housing - You can use your Great Choice Home Loan to purchase off-site manufactured homes! Learn more here!

THDA created the Great Choice Home Loan program to make homeownership available and affordable for first-time homebuyers, but repeat homebuyers can participate if you meet any of the following qualifications:

If this sounds like the right loan for you, click below to get started today!

What is a THDA loan? Mortgage Investors Group

Homeownership for Heroes

THDA celebrates and honors the men and women who serve with the Homeownership for Heroes program. Homeownership for Heroes is a type of Great Choice Home Loan that offers financial assistance along with these added benefits:

  • Reduced interest rate by half percentage point (0.5%)
  • Waive requirements to be a first-time homeowner in all areas of Tennessee for qualified military or veterans
  • Borrow up to 100% of home’s purchase price with a VA or USDA-RD loan or 96.5% with FHA loans

The Homeownership for Heroes program is available to:

  • Active Duty Military, National Guard, and Veterans
  • State and Local Law Enforcement Officers
  • EMTs/Paramedics
  • Firefighters
THDA loan program through Mortgage Investors Group

Down Payment Assistance

If you qualify for a Great Choice Home Loan, you can also apply for down payment assistance in the form of a Great Choice Plus second loan to help with your down payment and/or closing costs. There are two options for down payment assistance.

Deferred Option (No Payments) 1

  • Down payment assistance is $6,000 in the form of a forgivable second mortgage loan.
  • 0% interest rate
  • Loan is forgiven at the end of 30-year term. If the home is sold or refinanced prior to 30-year term, the loan is due in full.

Amortizing Option (Payment) 2

  • Down payment assistance is up to 5% of the sales price with a maximum assistance amount of $15,000.
  • 30-Year term amortizing
  • Interest rate is the same as the first mortgage.

Homebuyer Education
To qualify for down payment assistance, you must complete a pre-purchase Homebuyer Education course from a THDA-approved instructor. You can take this course online or in a classroom style (virtual/in-person) with other homebuyers like yourself. Click here for course options.

*Information sourced from www.thda.org. 1Terms based on 30-year fixed first lien with an interest rate of 7.00% for the entire loan term and monthly loan payments of $984.95. Loan amount of $148,046.25, including the FHA Upfront Fee of $2,546.25 and LTV of 97%. Credit score of 680. APR of 8.188%. Monthly payment does not include PMI, taxes, insurance, or HOA fees. Subject to credit and property qualifications. Rates as of 4/16/24. 2Terms based on 30-year fixed second lien with an interest rate of 7.00% for the entire loan term and monthly loan payments of $59.88. Loan amount of $9,000 and LTV of 6%. Credit score of 680. APR of 7.029%. Monthly payment does not include PMI, taxes, insurance, or HOA fees. Subject to credit and property qualifications. Rates as of 4/16/24.
THDA - Mortgage Investors Group

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