The short version
THDA (the Tennessee Housing Development Agency) is a state agency that helps Tennesseans buy a home through approved lenders. Its flagship program, the Great Choice Home Loan, is a 30-year fixed-rate government-backed first mortgage for first-time buyers. Great Choice Plus adds down-payment and closing-cost assistance as a second loan, and THDA requires a short homebuyer education course. Income and purchase-price limits apply and vary by county. Pacific Bay Lending is a licensed lender that can originate THDA loans — the fastest way to know your eligibility and the current limits for your county is to pre-qualify.
What homes actually cost in Tennessee right now
THDA's purchase-price limits only matter relative to what's on the market. Across the 16,101 active Tennessee listings we're tracking, the median list price is $499,000 (about $240.56/sq ft). Many of these fall within THDA's acquisition limits — we confirm the exact figure for your county and target price when you pre-qualify.
Inventory figures are from Pacific Bay Lending's live Tennessee listing data and update daily. Homes shown across this site are public listings for illustration of what's available — not an offer to sell a specific property.
Browse Tennessee homes →The three pieces of a THDA loan
A THDA purchase usually combines a first mortgage, optional down-payment assistance, and a required education step. Here's what each one does.
First mortgage
Great Choice Home Loan
A 30-year fixed-rate, government-backed first mortgage (FHA, VA, or USDA-RD) originated through an approved lender. The fixed rate keeps your principal-and-interest payment level for the full term, and the low-down-payment structure is built for first-time buyers.
Down-payment help
Great Choice Plus
A second loan paired with your Great Choice first mortgage to help with the down payment and closing costs — the upfront cash that most often stands between a renter and a closing table. The amount and repayment terms depend on the option you qualify for.
Required step
Homebuyer Education
A short THDA-approved course (online or in person) covering budgeting, the loan process, and homeownership. It is required for THDA's programs — especially when assistance is involved — and we point you to the approved options that satisfy it.
Who THDA is built for
THDA eligibility is about a handful of factual tests — not who you are, but how the numbers and the property line up. The big ones:
First-time buyer (or a targeted area)
Most THDA programs are for first-time buyers, which THDA defines as not having owned and lived in a primary residence in the past three years. In designated 'targeted areas,' that requirement can be waived — we check whether a specific address qualifies.
Income within the county limit
THDA caps household income, and the cap varies by county and is updated periodically. We compare the current limit for your county against your actual income — no guessing from a stale number.
Purchase price within the acquisition limit
There's a maximum purchase price (acquisition cost) per county. It changes over time, so the real test is your target home against today's county limit, which we pull during pre-qualification.
Primary residence + credit and program standards
The home has to be the one you'll live in, and the file has to meet the underlying government loan's credit and property standards plus THDA's overlays. A soft-credit pre-qual tells you where you stand.
Homebuyer education completed
A short THDA-approved course is required, particularly when down-payment assistance is involved. We point you to the approved online and in-person options.
What about the rate?
THDA sets the interest rate on its Great Choice loans, and because the program is funded to support affordable homeownership, its first-mortgage pricing is typically competitive for the borrowers it serves. Rates move with the broader market and with the specific program option, so a number you read today can be stale tomorrow — and quoting one here without the full disclosure it requires wouldn't be doing you any favors.
What actually drives your rate is the loan type underneath the THDA program (FHA, VA, or USDA), your credit profile, and which assistance option you pair with it. The honest answer is that we have to look at your file. When you pre-qualify, we walk you through the current THDA option that fits and what it means for your monthly payment — in writing, with the proper disclosures, not a teaser number.
Estimate only — not a rate offer, APR disclosure, or commitment to lend. Subject to credit approval and underwriting.
How Pacific Bay Lending helps with a THDA loan
THDA doesn't lend to you directly — it works through approved lenders. As a licensed lender serving Tennessee, Pacific Bay Lending can originate THDA loans, which means you work with one licensed loan officer from the first question through closing instead of getting passed around a call center.
We do three things that matter for a THDA buyer: we pull the current income and purchase-price limits for your specific county (so you're not working off an outdated blog post), we figure out whether Great Choice Plus assistance makes sense for your cash situation, and we make sure the homebuyer education box gets checked the right way so it never delays your closing. No promise of approval — just a clear, honest read on whether THDA is your best path or whether another program fits better.
THDA questions, answered
What is THDA?
THDA is the Tennessee Housing Development Agency, a self-supporting public agency created by the state to help Tennesseans access affordable housing. It does not lend directly to you — instead it sets the program rules and works through approved lenders who originate the loans. Pacific Bay Lending can originate THDA loans for eligible Tennessee buyers.
What is the Great Choice Home Loan?
Great Choice is THDA's primary first-time homebuyer program: a 30-year fixed-rate government-backed mortgage (such as FHA, VA, or USDA-Rural Development) originated through an approved lender. The fixed-rate, 30-year structure means your principal and interest payment stays level for the life of the loan. We review which underlying loan type fits your situation when we run your numbers.
How does Great Choice Plus down-payment assistance work?
Great Choice Plus is THDA's down-payment and closing-cost assistance, offered as a second loan paired with a Great Choice first mortgage. It is designed to help cover the upfront cash a purchase requires. THDA offers more than one assistance structure, and the amount and repayment terms depend on the program option and your loan — we walk you through which option you qualify for during pre-qualification.
Do I have to be a first-time homebuyer to use THDA?
Generally THDA's flagship programs are aimed at first-time buyers, which THDA defines as someone who has not owned and occupied a primary residence in the past three years. There are also 'targeted areas' — specific census tracts where the first-time requirement is waived and the income limits may differ. Whether a property sits in a targeted area is something we confirm for your specific address.
Are there income and purchase-price limits for THDA?
Yes. THDA sets maximum household income limits and maximum acquisition (purchase price) limits, and both vary by county and are updated periodically. Because the figures change and depend on where you're buying, we don't post a static dollar number here — we pull the current limit for your county and compare it to your actual income and target price when you pre-qualify.
Is the homebuyer education course required?
Yes — THDA requires homebuyer education for its programs, and when down-payment assistance is involved the requirement is firm. The course is a short class (offered online and in person through THDA-approved providers) that walks you through budgeting, the loan process, and being a homeowner. It is meant to set you up for a successful closing, and we tell you exactly which approved options satisfy the requirement.
What credit score and down payment do I need for a THDA loan?
THDA programs follow the credit and underwriting standards of the underlying government loan (FHA/VA/USDA) plus THDA's own overlays, so a minimum credit score applies and is subject to change. Because Great Choice loans are typically government-backed, the down payment is low, and Great Choice Plus can help with the upfront cash. The only way to know where you stand is a soft-credit pre-qualification — that is exactly what we do, with no obligation.
Can I use a THDA loan to buy any home in Tennessee?
THDA loans are for a primary residence (the home you'll live in), and the property must fall within THDA's acquisition-cost limit for its county and meet the underlying loan program's property standards. Investment properties and second homes don't qualify. We confirm program fit for the specific property and price once you're looking at a home.
Reviewed by Michael Hernandez, Loan Officer · NMLS #192103
Michael Hernandez is a licensed mortgage loan officer with Pacific Bay Lending (Pacific Bay Lending Corp, NMLS #192103), a direct lender serving Tennessee. This guide is for general education about THDA programs and is not an offer of credit, a rate quote, or a guarantee of program approval. Program details are set by the Tennessee Housing Development Agency and can change.
Verify our license on NMLS Consumer Access →See if THDA is your best path
Answer a few questions and we'll check the current THDA income and purchase-price limits for your county against your real numbers — about 10 minutes, soft credit check to start, no obligation.