Great Choice Special Military Discount Program
THDA is proud of the service the armed forces have provided to our state and country. In honor of their service, a special interest rate reduction on the Great Choice Loan Program is available for qualified service men and women looking to purchase a home in Tennessee. This special offer, known as “Homeownership for the Brave,” provides a ½% rate reduction on the current interest rate for Great Choice loans. In addition to the rate reduction, "Homeownership for the Brave" applicants are eligible for optional downpayment and closing cost assistance through the Great Choice Plus second mortgage loan at a 0% interest rate.
- Click here to learn more about the Great Choice Loan Program.
What are the benefits of the military discount?
- The ½% interest rate reduction could result in a lower interest rate than available elsewhere.
- A borrower can receive additional funding to help with downpayment and closing costs.
- A borrower does not have to be a first-time homebuyer to qualify.
- Even if the borrower is using a VA loan, he or she can still qualify for the "Homeownership for the Brave discount."
How does it work?
THDA offers 30-year, fixed rate mortgages (Great Choice) and optional downpayment assistance (Great Choice Plus) to eligible service men and women across Tennessee. In addition to meeting the minimum requirements to qualify for the Great Choice mortgage loan, applicants must take a homebuyer education course before closing on the loan. Great Choice mortgages with the "Homeownership for the Brave" rate reduction can be used in conjunction with FHA, VA, USDA-Rural Development or uninsured conventional loans.
- Click here to learn more about Great Choice and Great Choice Plus.
Who is eligible for the Great Choice military discount?
Active duty service members and National Guard, veterans discharged under conditions other than dishonorable, reservists with at least 180 days of active duty service, spouses of service members and qualified veterans as well as surviving spouses of service members and qualified veterans.
How do I qualify for a Great Choice loan?
The following list outlines the minimum qualifications needed for the Great Choice Loan Program:
- Satisfactory credit history. THDA currently requires a 640 credit score. To find out your credit score, contact one of our approved lenders in your area. If your score is lower than 640, our homebuyer education counselors can help you with strategies to raise your credit score.
- Household income not above maximum limits. Great Choice loans are designed for low to moderate income Tennesseans. Income limits are based on the size of your household and county in which you will be purchasing your home. To see a list of maximum income limits by county, please click here.
- Purchase price of home not above maximum limits. The Great Choice Loan Program is meant for modest homes, therefore maximum purchase price limits are in place and vary by county. To see a list of maximum purchase price limits by county, please click here.
Interested in more information?
THDA encourages the following action steps depending on your level of familiarity with the homebuying process:
1- Homebuyer Education Course: For those just starting out on the homeownership journey, THDA recommends you take a homebuyer education course. These courses:
- Teach you the steps to homeownership
- Clarify common, but confusing, mortgage concepts like title insurance and PMI
- Outline various mortgage types, including THDA’s Great Choice Loan Program
- Develop an understanding of budgeting and credit scores
- Connect you with a trainer who is as a resource for you throughout the homeownership process
- Have fees that vary depending on the chosen course. Some courses are free. An online course is $99.
- Are required for all Homeownership for the Brave applicants
- If you plan to take part in the $15,000 HHF Down Payment Assistance program, you must complete your homebuyer education class with a provider who is approved for the HHF-DPA program.
Click here to find a homebuyer education course near you.
Click here to register for an online course.
2- Talk to a Lender: Homebuyers more familiar with homeownership, but who wish to know more about the Great Choice, Great Choice Plus and Homeownership for the Brave are encouraged to contact a THDA-approved lender.
Click here for a list of THDA-approved lenders organized by county.