Millions of people in the United States dream of owning a home one day. Unfortunately, many Americans struggle to make this dream a reality due to financial reasons.
The Tennessee Housing Development Agency (THDA) developed the Great Choice Home Loan program to make homeownership more affordable and available for Tennesseans who have middle or moderate income. Read this article to learn more about how this program can help you with mortgage down payment assistance.
Who Qualifies for This Program?
The THDA created the Great Choice Home Loan program specifically for first-time homebuyers who would otherwise struggle to afford their first home. However, repeat homebuyers may also be able to participate in the program if they meet any one of these qualifications:
- You are buying a home in one of the 43 targeted counties.
- You are buying a home in a designated area of one of the 15 additional counties.
- You have not lived in your own home for three years or more.
- You are a qualified military household or veteran participating in the Homeownership for the Brave program.
You are able to apply for down payment assistance with the Great Choice Home Loan if you meet any of these requirements.
What Are Great Choice Home Loans?
The Great Choice Home Loans are for 30-year terms. This means that your monthly payments for the mortgage will be spread across three decades for maximum affordability. The interest rate is fixed and will not change throughout the loan’s duration.
For a successful loan application, your credit score must be 640 or higher. In fact, the credit score of everyone on the loan application must be at least 640. Take the time to check your credit score prior to filling out a loan application. If your credit score does not meet the minimum, you do what you can to get your credit score up. There are THDA-certified counselors that you can work with to improve your credit score.
When it comes to THDA down payment assistance, there are household income limits and purchase price limits. Both limits depend on the county in which you reside and the number of people in the household.
Most Great Choice Home Loans are insured by the USDA-RD or FHA. Therefore, you may be able to borrow a maximum of 96.5 percent of your purchased home’s total price. Therefore, the minimum amount of money you need for a down payment is 3.5 percent of the total price of the purchase home. You can use the Great Choice Plus down payment assistance for closing costs, down payment, and other costs related to the loan.
What Are Your Next Steps?
If you’re interested in the Great Choice Home Loan, you should think about attending a class for homebuyer education. If you want to receive assistance for a down payment, this class is necessary.
You can expect to learn how to choose the right home for your needs, how to determine a reasonable budget, what questions that you should ask when deciding whether to buy a home, how to maintain a home as a homeowner, and how to qualify for a loan.
For more information about how the Great Choice Home Loan program can help you with mortgage down payment assistance, don’t hesitate to contact us.