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 who are 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:
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 with 0 percent interest and no monthly payments. 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.
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.