Research the Tennessee program, property and closing steps together
The Tennessee Housing Development Agency (THDA) offers mortgage and homebuyer resources with requirements that depend on the loan, household and property. Use the city directories above to explore providers, then use THDA's own resources to check program participation and prepare for an application.
Confirm the lender's role in a THDA application
Great Choice is THDA's fixed-rate home mortgage program. Its consumer page links to household-income and purchase-price requirements; bring the property's county and household information to the lender so the right limits can be checked. A general mortgage preapproval does not by itself establish eligibility for this state program.
THDA's Find a Lender page groups active lenders into West, Middle and East Tennessee and links to its full approved list. An approved lender handles the application and determines mortgage eligibility. Confirm that the loan officer can originate the particular THDA option you are discussing. A listing in Mortgage Firm's independent directory does not establish THDA participation, and a regional listing does not tell you how close an office is to the home.
For repeat buyers, check the address rather than the metro name
THDA describes several paths for repeat buyers, including buyers who have not lived in a home they own for at least three years, purchases in targeted areas and qualifying military households. Explain your ownership and occupancy history to the lender before ruling the program in or out.
Targeted status can cover an entire county or only designated census tracts within it. THDA lists specific tracts in counties including Knox and Hamilton, so a Knoxville or Chattanooga mailing address alone is not enough to establish the location-based exception. Its targeted-area page links to an address-search map; ask the lender to confirm the property's designation using the current program information.
The targeted-area exception removes the first-time-buyer requirement. It does not replace the lender's review of the other loan and program requirements.
Compare the assistance loan's payment and payoff obligations
Great Choice Plus provides down payment or closing-cost assistance as a second mortgage paired with a qualifying Great Choice home loan. THDA describes a deferred option without monthly payments and an amortizing option with scheduled payments. These are loan arrangements, not an unrestricted cash grant.
The deferred option provides forgiveness at the end of its term, but THDA says selling or refinancing before then requires repayment in full. The amortizing option adds a separate payment to plan for. THDA also describes a different amortizing option for newly built or proposed construction, so identify which property and assistance option the lender is using before comparing offers.
Questions to take with you
- What are the term, monthly payment and remaining balance of the specific assistance loan being offered?
- What would become due if I sell or refinance, and what other conditions could require repayment?
- How does the combined payment compare with a loan proposal without assistance?
Allow time for counseling after an online course
THDA requires approved homebuyer education for its mortgage programs. It offers classroom-style courses, including virtual classes, and self-paced online education through its eHome America pathway. Use THDA's course-selection page to find the approved route and contact the provider about enrollment.
Finishing the online lessons is only one step: THDA also requires a follow-up session with the approved housing counselor from the agency you registered with. The completion certificate is issued after both steps. Schedule that appointment when enrolling so it does not become an unexpected closing task.
THDA encourages completion at least four weeks before closing. The certificate is valid for 12 months, and a copy goes to the loan officer with the application. If your home search runs longer, check the certificate's expiration with the provider. THDA's education page also links to counseling-agency lists for buyers who need help preparing before applying.
Published by Mortgage Firm, an independent directory. Program administrators and lenders determine current availability and eligibility. Our editorial approach