Navigating THDA Loan Programs for First-Time Buyers in Tennessee

Unlocking the Dream of Homeownership in Middle Tennessee

Welcome to the exciting journey of buying your first home in Tennessee! Purchasing a home can feel overwhelming for first time homebuyers. The Tennessee Housing Development Agency (THDA) offers incredible resources to help you secure the keys to your new home. At The Brown Team at Churchill Mortgage, we specialize in helping Tennessee residents navigate these affordable housing initiatives.

The cornerstone of these initiatives is the Great Choice Home Loan program, which provides a 30-year fixed-interest rate mortgage. This means your monthly payments remain predictable, allowing you to budget with confidence. Whether you are considering an FHA, VA, or USDA loan, THDA programs can be seamlessly paired to fit your unique financial situation and get you into the home of your dreams.

Down Payment Assistance and Eligibility Requirements

One of the biggest hurdles for first-time home buyers in Tennessee is saving for the upfront costs. The Great Choice Plus Down Payment Assistance (DPA) program is designed to bridge this exact gap. Borrowers typically have two fantastic options to cover down payments and closing costs:

• Deferred Option: Provides up to $10,000 in down payment assistance with a 0% interest rate and no monthly payments. This loan is completely forgivable after 10 years if you remain in the home.
• Amortizing Option: Offers up to 5% of the home's purchase price, which is repaid monthly over the loan term at the same interest rate as your first mortgage.
• Effective September 14, 2026, THDA will offer a new Down Payment Assistance program providing up to $25,000 for newly built homes.

Additionally, eligible service members and community heroes (like teachers, firefighters, and law enforcement) can take advantage of the Homeownership for Heroes program. This initiative offers reduced interest rates and waives the strict first-time buyer requirement.

To qualify for THDA loans, applicants generally need a minimum credit score of 640. Household income and purchase price limits also apply. Finally, you must complete a THDA-approved homebuyer education course to ensure you are fully prepared for this exciting investment.