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 49 designated ZIP Codes located in 33 Tennessee counties.

Designated ZIP Codes:

37040*

37042*

37110*

37115

37148

37186

37303*

37311

37321

37323*

37354

37404

37406

37406

37411

37412

37416

37650

37660*

37716

37721*

37813

37821*

37871

37874

37912*

37914

37917

37920

37921

38012

38016

38053

38063

38105

38107

38109*

38111

38115

38116

38118

38122

38125

38127

38128

38134

38135*

38141

38301

38305






* Indicates ZIP Codes that will be ineligible effective July 1, 2019.


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: