First-time Homebuyers

You have a choice in a home loan. Make it a Great Choice.

As a state agency, THDA created the Great Choice Home Loan program to make homeownership available and affordable for Tennesseans of middle/moderate income.

About Great Choice Home Loans:

  • 30-Year Term - Your monthly payments are spread out across 30 years to keep them affordable.
  • Fixed Interest Rate - The interest rate never changes throughout the entire life of the loan.
  • Minimum Credit Score - The credit score of everyone on your loan application must be at least 640. If you do not know your credit store, your lender can check for you. If your credit score is too low, you can work with a THDA-certified counselor to improve your score.
  • Down Payment Assistance - Most Great Choice Home Loans are insured by FHA or USDA-RD, which means you may be eligible to borrow up to 96.5% of the total price of the home you’re buying. This means you need a minimum of 3.5% for a down payment. You can use our Great Choice Plus down payment assistance for any loan-related costs, including your down payment and/or closing costs.

Next Steps:

If a Great Choice Home Loan sounds like it might be right for you, we encourage you to start by attending a homebuyer education class. This class is required for down payment assistance. THDA manages a network of approved homeownership counselors who teach homebuyer education classes.

A homebuyer education class can teach you:

  • How to determine your budget
  • What makes a home right for you
  • What questions to ask when looking at a home
  • How to qualify for a home loan
  • What’s involved in maintaining a home once you’re a homeowner


THDA works with Lenders and REALTORS® across the state who are trained and approved for the Great Choice Home Loan program.

Find an approved lender in your area.

Find an approved REALTOR in your area.