Great Choice Loan Program Advantages

Your clients should have every opportunity to purchase a home. Consider the following THDA Great Choice Loan Program advantages so that you can help them select the best mortgage loan:

  • THDA's Great Choice Plus provides 5% of sales price for downpayment funds with a zero (0) percent interest, deferred, second mortgage. It acts as buyers’ own money. On a FHA loan, with the seller paying closing costs for buyer, the buyer may have little or no money down.
  • When not needed for downpayment, THDA funds can be used to pay closing costs and prepaids. On VA loans, and even on FHA loans where borrower has downpayment saved, but not sufficient savings to also pay closing costs, the 5% can be used. This is hugely important when seller is underwater and can’t help with the buyer’s closing costs.
  • A Vanderbilt study shows that homebuyer education is more important than “skin in the game” when it comes to being a sustainable homeowner. Homebuyer education is required on any THDA loan than provides downpayment assistance.
  • THDA guarantees a 5 day underwriting turn-time (usually same day) with quick funds after closing.
  • Veterans or active duty military personnel, including Reservists, National Guard and surviving spouses get a ½% reduction in interest rate on FHA, VA, RD or conventional loans. Veterans (with DD-214 honorable discharge or DD-4 re-enlistment form) do not have to be a first-time homebuyer to obtain a THDA mortgage.
  • The first-time homebuyer requirement is waived for all buyers purchasing in a targeted area. Click here to see the Targeted Areas.
  • THDA provides a free 6-month interest rate lock on new construction. This means that the rate cannot go up during 6 months while home is being constructed. This is provided at no cost to the buyer or builder. The commitment is issued before ordering construction with appraisal from plans and specs or from a model home.


  • What REALTORS® Need to Know About THDA

Click here for a short 20 minute webinar and learn how you can know if THDA is a good fit for your client!

Criteria for THDA's Great Choice Loan Program

Your knowledge of THDA requirements may allow mortgage loan transactions to close with THDA as the investor.

  • First-Time Home Buyer or Eligible Repeat Homebuyer (Click here to see the Targeted Areas)
  • Household Income Limits
  • Acquisition Cost limits
  • Single Family residence
  • Owner-occupied property
  • 640 Minimum Credit Score
  • 43-45% Debt-to-Income (43% manual underwrite - 45% DU/LP underwrite & automated underwrite)

Contact THDA

For more information, contact:

Debbie Reeves, Real Estate Industry Advisor, at or 615-815-2152 or 615-238-1480.