Advantages of Great Choice Home Loans
Your clients should have every opportunity to purchase a home. Consider the following THDA Great Choice Loan Program advantages so that you can help them select the best mortgage loan:
- THDA's Great Choice Plus provides a flat amount of down payment assistance based on purchase price. They can choose 6% of the sales price in the form of a second mortgage that will be paid back over 15 year in monthly payments, or they can choose the deferred option of $6,000 that will only be repaid upon sale or refinance. On a FHA loan, with the seller paying closing costs for buyer, the buyer may have to put little or none of their own money down.
- When not needed for down payment, THDA funds can be used to pay closing costs and prepaids. On VA loans, and even on FHA loans where the borrower has a down payment saved but doesn't have sufficient savings to also pay closing costs, the assistance can be used. This is hugely important when seller is underwater and can’t help with the buyer’s closing costs.
- A study in the Journal of Policy Analysis and Management (2016) shows that homebuyer education reduces the risk of foreclosure among homebuyers. Homebuyer education is required on any THDA loan.
- THDA guarantees a 5 day underwriting turn-time (usually same day) with quick funds after closing.
- Veterans or active duty military personnel, including Reservists, National Guard and surviving spouses get a ½% reduction in interest rate on FHA, VA, RD or conventional loans. Veterans (with DD-214 honorable discharge or DD-4 re-enlistment form) do not have to be a first-time homebuyer to obtain a THDA mortgage.
- The first-time homebuyer requirement is waived for all buyers purchasing in a targeted area. Click here to see the targeted areas.
- THDA provides a free 6-month interest rate lock on new construction. This means that the rate cannot go up during the 6 months while home is being constructed. This is provided at no cost to the buyer or builder. The commitment is issued before ordering construction with appraisal from plans and specs or from a model home.
For more information, contact:
Josh McKinney, Real Estate Industry Advisor, at firstname.lastname@example.org or 615-815-2158 or 865-394-8960 or Juanita Hamilton, Real Estate Industry Advisor, at email@example.com or 615-815-2190 or 629-395-4060.