If you qualify for a Great Choice Home Loan and you’re purchasing an existing home in a targeted ZIP Code, you can apply for $15,000 in financial assistance for your down payment and closing costs. The Hardest Hit Fund Down Payment Assistance (HHF-DPA) program is available to Great Choice borrowers who purchase a home in a neighborhood that was hardest hit in the economic downturn and is recovering more slowly than other areas across the state.
There are 55 targeted ZIP Codes located in 30 Tennessee counties.
Participating ZIP Codes:
How It Works
If you’re approved, your financial assistance comes in the form of a forgivable $15,000 second mortgage loan on your home.
The second mortgage has a 0% interest rate and no monthly payments for the 10 year term. The loan is forgiven at 20% per year in years 6 through 10.See forgiveness schedule below.
What you owe if you sell, refinance, or move out
|0 - 5||$15,000|
To be eligible, you must purchase an existing home (new construction is not allowed) using a Great Choice first mortgage loan in an eligible ZIP Code, and you must complete a THDA-certified Homebuyer Education class with an agency approved to work with HHF-DPA homebuyers. Find an approved HHF-DPA class provider in your area.
If that sounds like a great choice to you, here’s how to find out if you qualify for a Great Choice Home Loan:
Additional terms and conditions apply. Talk to an approved lender to help determine if you qualify and if this program may be right for you. You must comply with the terms and conditions of the Great Choice Home Loan Program and HHF-DPA second mortgage loan or penalties may apply, including immediate repayment.
Any suspected fraud in connection with the HHF-DPA Program should be reported to THDA for immediate review. THDA reserves the right to decline funding or participation if it is determined that fraud has occurred.
Report Fraud To:
- Tennessee Housing Development Agency -- email@example.com
- U.S. Department of Treasury -- www.treasury.gov
- The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) -- http://www.sigtarp.gov