GC97 Freddie Mac HFA Advantage

The GC97 Freddie Mac HFA Advantage Program offers an insured conventional mortgage loan secured by a first mortgage with the options of down payment and closing cost assistance.

Down Payment Assistance - If you qualify for the GC97 Freddie Mac HFA Advantage Program, you can also apply for down payment assistance in the form of a GC97 Plus second loan to help with your down payment and/or closing costs. There are two options for down payment assistance.

GC97 Plus- Deferred Option (No Payments) - THDA will provide $6,000 in the form of a forgivable second mortgage loan on your home. The loan has a 0% interest rate and the payments are deferred until the end of the 30 year term, at that time the loan is forgiven. The loan will be due in full at the time the home is refinanced or sold.

GC97 Plus- Amortizing Option (Payment) - THDA will provide 6% of the sales price in the form of a second mortgage loan on your home, that is paid in monthly payments over 15 years at an interest rate that is the same as the first mortgage rate. The loan may also be used to pay closing costs.

Highlights for GC97 and GC97 Plus

  • No first time homebuyer requirement
  • Flexibility for loan qualification for borrowers with student loan debt
  • Income limits apply differently for the GC97 than Great Choice
  • Qualifying income of the borrower(s) on the loan is used instead of household income limits
  • Lender compensation up to 2.75%
  • Since this is not a bond loan, there are not any pre-closing disclosures needed, such as affidavits.

Helpful Links



        01.23.20 New GC97 Freddie Mac HFA Advantage Announcement
        01.27.20 GC97 Rollout to Lenders in Phases
        03.23.20 Update on GC97
        06.09.20 GC97 Program Update with Trainings
        07.08.20 GC97 Income Changes

        Recorded Webinar -- GC97 Training for Lenders

        Click here | 35 minutes approximate time