Great Choice Home Loan – First-Time Homebuyers | Tennessee grant

Great Choice Home Loan – First-Time Homebuyers

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Tennessee Housing Development AgencyTNFirst-Time Homeowner

Funding: Provides a predictable 30 year fixed rate mortgage platform that can be combined with Great Choice Plus second loan assistance covering up to roughly 5 percent of the purchase price, but the first mortgage itself does not have a single flat assistance amount.Tennessee Housing Development Agency 30 year fixed rate first mortgage product for first-time and certain repeat buyers, available with FHA, VA, USDA RD or conventional financing and designed to be paired with Great Choice Plus down payment assistance when needed.RollingDeadline: Scope: Statewidestate

Updated: Dec 6, 2025

Summary

THDA’s flagship Great Choice Home Loan offers a predictable 30-year fixed mortgage for Tennessee first-time buyers, often paired with down payment assistance to reduce cash-to-close.

Benefits

affordable mortgagefixed-rate mortgagedown payment assistance eligiblestate HFA loanhomebuyer education required

Who Can Apply

homebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee resident

Eligible Locations

Primarily first time homebuyers, or buyers who have not owned a home in the past three years, purchasing an owner occupied primary residence anywhere in Tennessee who meet THDA income and purchase price limits, qualify for an eligible government insured or conventional loan, and complete THDA homebuyer education requirements.

Eligibility

Primarily first-time homebuyers (or buyers who have not owned in the past three years) who meet THDA income and purchase-price limits, qualify for FHA, VA, USDA-RD, or conventional financing, complete THDA homebuyer education, and purchase an owner-occupied primary residence in Tennessee. Some exceptions allow certain repeat buyers under defined conditions.

Full Description

The Great Choice Home Loan is THDA’s core first-mortgage product tailored to first-time buyers and select repeat buyers across Tennessee. It provides a 30-year fixed-rate loan that can be insured or guaranteed by FHA, VA, USDA-RD, or structured as a conventional mortgage, giving borrowers multiple paths to approval depending on their credit, savings, and target property. Borrowers must stay under county-specific income and purchase-price limits, complete a THDA-approved homebuyer education course, and purchase a home they will occupy as their primary residence. When layered with THDA’s Great Choice Plus second loan, eligible buyers can finance most or all of their minimum down payment and part of their closing costs, using a structured and regulated product instead of high-cost alternatives. The program’s emphasis on education, counseling, and fixed-rate financing is designed to improve long-term loan performance and help first-time buyers transition from renting to stable homeownership.

Verification & Details

Status: Open

Source: thda.org

Official source → thda.org

Apply on official siteUpdated Dec 6, 2025

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More statewide programs

Explore additional grants available throughout Tennessee that complement this opportunity.

City of Memphis Down Payment Assistance Program

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City of Memphis – Division of Housing and Community Development, Office of Down Payment AssistanceTNFirst-Time HomeownerCity of Memphis administered zero percent interest deferred second mortgage style assistance that provides up to 10 percent of the home sales price, capped around 25000 dollars, to cover down payment and closing costs for eligible buyers under citywide and targeted incentive tracks.

Updated: Dec 6, 2025

Memphis’s DPA office provides layered, citywide and incentive-based down payment and closing-cost assistance loans so eligible buyers can purchase homes within the city limits with far less upfront cash.

Eligible for: First-time buyers and other eligible purchasers buying within Memphis city limits who meet specific income limits (Citywide DPA typically ≤8…

Funding: Offers up to approximately 10 percent of the home sales price in assistance, with maximum awards in recent guidelines around 25000 dollars, delivered as a zero percent interest, deferred payment second loan that can be applied to down payment and closing costs and is forgiven or repaid based on compliance with occupancy and program rules.Deadline: Rolling; assistance offered on a first-come, first-served basis while annual DPA funding is available.RollingLocalhomebuyerfirst-time homebuyerlow-income homebuyerMemphis residenthousing voucher participantpublic safety employeeteacherdown payment assistanceclosing cost assistance0% interestdeferred loansecond mortgagecity programworkforce housing

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Great Choice Homebuyer Programs

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Tennessee Housing Development AgencyTNFirst-Time HomeownerStatewide Tennessee Housing Development Agency platform that delivers 30 year fixed rate Great Choice first mortgages and companion Great Choice Plus down payment assistance second loans, along with related products for first-time and repeat buyers.

Updated: Dec 6, 2025

THDA’s Great Choice homebuyer portal is the statewide hub for affordable 30-year fixed-rate loans and companion down payment assistance options for Tennesseans.

Eligible for: Tennessee homebuyers who meet THDA income and purchase-price limits, minimum credit and debt-to-income requirements, and complete a THDA-app…

Funding: Down payment assistance through Great Choice Plus can generally provide up to about 5 percent of the purchase price, capped near 15000 dollars, as a subordinate loan to help cover required down payment and closing costs when paired with a Great Choice Home Loan.Deadline: Rolling; statewide, subject to program funding and current rate sheets.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee residentdown payment assistanceclosing cost assistanceaffordable mortgagefixed-rate mortgagestate HFA loanhomebuyer education required

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Great Choice Plus – Down Payment Assistance

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Tennessee Housing Development AgencyTNFirst-Time HomeownerTennessee Housing Development Agency subordinate second mortgage that rides alongside a Great Choice first mortgage and provides up to around 5 percent of the home purchase price, typically capped near 15000 dollars, to cover down payment, closing costs and certain prepaid items.

Updated: Dec 6, 2025

Great Choice Plus is THDA’s companion down payment assistance loan, adding a low-cost second mortgage so income-eligible buyers can close with far less cash.

Eligible for: Borrowers who qualify for a Great Choice Home Loan, meet THDA income and purchase-price limits, complete required homebuyer education/counse…

Funding: Can provide up to about 5 percent of the home's purchase price, generally capped near 15000 dollars, as a structured second mortgage that helps cover down payment, reasonable closing costs and prepaid expenses when paired with a Great Choice first mortgage.Deadline: Rolling; only available in conjunction with an eligible Great Choice Home Loan while THDA DPA funds remain.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee residentdown payment assistanceclosing cost assistancesecond mortgagestate HFA loanhomebuyer education required

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First-Time Homebuyers Program – City of Clarksville

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City of Clarksville – Neighborhood & Community Services / Office of Housing & Community DevelopmentTNFirst-Time HomeownerHUD HOME funded assistance package that provides up to 25000 dollars in combined zero percent interest support, with an initial forgivable portion and a remaining silent second mortgage portion, to cover down payment and closing costs for eligible first-time buyers in Clarksville.

Updated: Dec 6, 2025

Clarksville’s First-Time Homebuyers Program uses HUD HOME funds to provide substantial zero-interest down payment and closing-cost assistance to low-income buyers purchasing in the city.

Eligible for: Low-income, first-time homebuyers (generally at or below 80% of area median income) purchasing a primary residence within the Clarksville ci…

Funding: Offers up to 25000 dollars in total assistance, typically structured so that roughly the first 15000 dollars is a zero percent interest forgivable loan after a required owner occupancy period, with any remaining amount provided as a zero percent interest silent second mortgage that is repaid when the home is sold, refinanced or no longer used as the buyer's primary residence.Deadline: Rolling; funded with HUD HOME dollars and offered while annual allocations remain available.RollingLocalhomebuyerfirst-time homebuyerlow-income homebuyerClarksville residentdown payment assistanceclosing cost assistance0% interestforgivable loansilent secondcity programHUD HOME funded

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