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James R. Martin/Shutterstock May 24, 2022 Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Tennessee was the No. 3 destination for U-Haul customers in 2021, according to the . Nashville’s downtown energy and country music charm certainly played a role in attracting new residents (the city earned a spot on Bankrate’s in 2022 list) but smaller cities like Knoxville, Bristol and Johnson City are experiencing growth, too. If you’re a exploring your options in the state, the Tennessee Housing Development Agency might be able to help make your move more affordable. The state’s housing finance agency works with a number of banks, credit unions and mortgage lenders to make buying a home a reality for first-time buyers.
Tennessee first-time homebuyer loan programs
THDA Great Choice Home Loan
The Tennessee Housing Development Agency (THDA) offers first-time and repeat homebuyers the Great Choice Home Loan program, which can apply to a conventional, FHA, VA or USDA loan. These are 30-year loans with fixed interest rates, which vary based on market and mortgage lender. Borrower requirements: 3 percent down payment for GC97 conventional loan; 3.5 percent down payment for FHA or USDA loan (down payment assistance available) 640 minimum credit score Must complete homebuyer education course Must meet THDA , which vary depending on county and size of household Property requirements: Must meet THDA , which vary across the state THDA Homeownership for the Brave
THDA’s Homeownership for the Brave program is designed to help military servicemembers and their spouses by reducing the interest rate on a mortgage by one-half of a percentage point. You don’t have to be a first-time homebuyer to take advantage of this program, but you must take a homebuyer education course to be eligible. You’ll also need a minimum credit score of 640 and to meet the income and purchase price limits of the Great Choice program. This option is available to: Active-duty servicemembers, including the National Guard Veterans (excluding those who were dishonorably discharged) Reservists with at least 180 days of active-duty service Spouses and surviving spouses of qualified servicemembers, reservists and veterans Tennessee down payment assistance
THDA Great Choice Plus
If you’re applying for a Great Choice Loan through the THDA and you need help coming up with the cash to cover the down payment and closing costs, Great Choice Plus is designed to ease that financial stress. This is a second mortgage that comes with the same interest rate as your first 30-year mortgage, but the length of the term is shorter: 15 years. You’ll pay back the loan in that time with monthly payments. The borrower requirements are the same as the ones set by the Great Choice Loan program. How much down payment assistance can you receive with Great Choice Plus? It depends on the price of your home: Under $150,000: $6,000 Over $150,000: $7,500 Other Tennessee homebuyer assistance programs
In addition to support from one of the THDA programs, consider other first-time homebuyer assistance offerings if you’re looking for a property in certain regions of Tennessee. In Chattanooga, for example, the Chattanooga Neighborhood Enterprise offers down payment assistance that covers up to $15,000 for qualified buyers. It’s a second loan that comes with an interest rate that is one-half of a percentage point lower than your first mortgage. Meanwhile, in Memphis, certain first-time homebuyers could qualify for up to $10,000 of down payment assistance through the city, which can be forgiven after five years.
Other first-time homebuyer loan programs
Lightbulb Bankrate Insight Outside of local and state offerings, turn to Bankrate’s to find out if you qualify for other nationally-available forms of assistance. Get started
To find out if you qualify for an affordable mortgage or down payment assistance in Tennessee, you’ll want to to make sure you have a 640 or above. Then, use the Tennessee Housing Development Authority’s (THDA) to verify that your income is within the limits of the county where you’re hoping to buy. Once you have an understanding of options available to you, you can and terms from the that work with the THDA. First-time homebuyer programs in nearby states
SHARE: Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles