What THDA is and what it offers
The Tennessee Housing Development Agency (THDA) is the state's housing finance agency. Its Great Choice Home Loan programs combine a 30-year fixed first mortgage with optional down-payment assistance, aimed at making the up-front cost of buying more reachable for eligible Tennessee buyers.
Assistance is structured as a second loan rather than a cash payment to you — the details of repayment or forgiveness depend on the specific program in effect when you apply.
Who may qualify
THDA sets household-income limits and home-purchase-price limits that vary by county, and it publishes these on its website. Many programs target first-time buyers — generally defined as not having owned a primary residence in the past three years — though targeted areas may serve repeat buyers.
Because limits differ across Tennessee's 95 counties and change over time, eligibility is something we confirm individually rather than assume.
- Household income at or under the county limit THDA publishes.
- A home price at or under the county purchase-price limit.
- Use of a THDA-approved lender and an eligible loan type.
How it pairs with your mortgage
THDA assistance layers on top of a first mortgage — commonly FHA, USDA, VA, or conventional. The first loan does the heavy lifting; the THDA piece helps with down payment and sometimes closing costs, within program rules.
A homebuyer education course is typically required for THDA assistance. We tell you whether your situation lines up and what the course involves.
