HHF Down Payment Assistance

If you qualify for a Great Choice Home Loan and you’re purchasing an existing home in a designated 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 62 designated ZIP Codes located in 33 Tennessee counties.**

Designated ZIP Codes:

37037

37172

37321

37650

37877

38012

38111

38133

37040

37186

37323

37660

37890

38016

38115

38134

37042

37207

37354

37716

37912

38018

38116

38135

37073

37208

37404

37721

37914

38053

38118

38141

37086

37217

37406

37813

37917

38063

38122

38301

37110

37218

37411

37821

37920

38105

38125

38305

37115

37303

37412

37871

37921

38107

38127

37148

37311

37416

37874

37924

38109

38128


**Effective January 1, 2019, the following 10 ZIP Codes will be removed from the program, resulting in 52 eligible 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.

After Year

What you owe if you sell, refinance, or move out

0 - 5 $15,000
6 $12,000
7 $ 9,000
8 $ 6,000
9 $ 3,000
10 $0

To be eligible, you must purchase an existing home (new construction is not allowed) using a Great Choice first mortgage loan in a designated ZIP Code. You must also complete a THDA-approved Homebuyer Education courses with an agency approved to work with HHF-DPA homebuyers. Click here to learn more about the required courses.

If THDA's new $15,000 HHF Down Payment Assistance program 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.

Homebuyer Education

To qualify for THDA's new $15,000 HHF Down Payment Assistance program, you must meet the homebuyer education requirements, which consist of a pre-purchase course and a post purchase course. It is best to sign up for these courses as early in the homebuying process as possible, and we strongly encourage you to complete the class at least four weeks before your closing date.

To learn more or to enroll in these courses, click here.


Fraud


Suspected Fraud

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: