THDA Programs
The Tennessee Housing Development Agency (THDA) provides fixed rate mortgage loans for first-time homebuyers, promotes the production of new affordable housing units for households of very low- to moderate-income, promotes the preservation and rehabilitation of existing housing units for such persons, and brings greater stability to the residential construction industry and related industries so as to assure a steady flow of housing production.
As the state's housing finance agency, THDA also serves Tennesseans in other ways such as providing grants to preserve and create homes, offering rental assistance on several different levels, assisting in the creation and maintenance of rental housing, providing educational opportunities, and helping other state agencies with housing missions to solve problems and save taxpayers’ money.
Programs for Homebuyers
Programs for Homeowners
- Emergency Repair
- Foreclosure Prevention
- Home Modifications & RAMP
- Low Income Home Energy Assistance Program (LIHEAP)
- Weatherization Assistance Program
Programs for Renters/Section 8
- Family Self-Sufficiency (FSS)
- Housing Choice Voucher (HCV)
- Low Income Home Energy Assistance Program (LIHEAP)
- Low Income Households Water Assistance Program (LIHWAP)
- TNHousingSearch.org
- Weatherization Assistance Program
Programs for Rental Housing Partners
- Community Investment Tax Credit
- Low Income Housing Tax Credits
- Multifamily Tax-Exempt Bond Authority
- Section 8 Project-Based Rental Assistance (Contract Administration)
Programs for Homeownership Partners
- Great Choice Home Loans & Great Choice Plus
- Homeownership for Heroes
- Homebuyer Education
- New Start Home Loans
Programs for Local Government & Nonprofit Partners
- Competitive Grants
- Creating Homes Initiative – 2
- Emergency Repair Program
- Emergency Solutions Grants
- HOME
- Home Modifications and Ramps Program
- National Housing Trust Fund
- Rebuild & Recover
Programs for Homebuyers
Great Choice and Great Choice Plus
Great Choice offers a low fixed rate 30-year first mortgage loan. Great Choice Plus provides two options for down payment and closing cost assistance as a second mortgage:
Deferred Option (No Payments)
THDA will provide up to $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 by THDA waiving the amount due. The loan will be due in full at the time the home is refinanced or sold.
Amortizing Option (Payment)
THDA will provide 5% of the sales price in the form of a second mortgage loan on your home with a maximum assistance amount of $15,000, that is paid in monthly payments over 30 years at an interest rate that is the same as the first mortgage rate. The loan may also be used to pay closing costs.
Homebuyer Education
THDA provides nonprofit organizations with tools to teach homebuyer education classes. THDA maintains on its website a list of certified homebuyer education trainers who can help consumers as they consider purchasing a home. Learn more about our Homebuyer Education Initiative.
Homeownership for Heroes
The Homeownership for Heroes program offers a 1/2-percent reduction on THDA’s Great Choice first mortgage loan for active and retired members of the military, National Guard, EMTs, paramedics, firefighters, and state and local law enforcement officers. Learn more about Homeownership for Heroes.
Programs for Homeowners
Emergency Repair
The Emergency Repair Program allocates funds to correct, repair, or replace an essential system and/or critical structural problem that poses an immediate danger to life, safety, or health of low-income homeowners who are elderly (60+) or disabled. The program is administered statewide by specific regional development districts or human resource agencies. Learn more about the Emergency Repair Program.
Foreclosure Prevention
THDA trains organizations across Tennessee to provide free and confidential counseling to homeowners facing foreclosure. THDA maintains a list of certified foreclosure prevention counselors on its website. Learn more about our Foreclosure Prevention program.
Home Modifications and Ramps
The Home Modifications and Ramps Program provides funding to construct ramps and make other home modifications to assist persons with disabilities gain better access to their homes. This program is administered statewide through United Cerebral Palsy of Middle Tennessee.
Low-Income Home Energy Assistance
The Low-Income Home Energy Assistance Program (LIHEAP) is a federal program designed to assist households below 60% of the federal poverty standards of low income, particularly those who pay a high proportion of household income for home energy bills, meet their immediate home energy needs. The funds are awarded to a network of 19 community service agencies serving all 95 counties in Tennessee. Learn more about the Low-Income Home Energy Assistance Program.
Weatherization Assistance
The Weatherization Assistance Program is a federal program designed to assist households below 200% of the federal poverty standards improve the energy efficiency of their homes. The funds are awarded to a network of community service agencies throughout the State. Learn more about the Weatherization Assistance Program.
Programs for Renters/Section 8
Family Self-Sufficiency
The Family Self-Sufficiency (FSS) program works with families to create a step-by-step plan that leads to economic independence. The purpose of FSS is to facilitate access to the supportive services families need to become free of public assistance in a five-year time period. All participating Section 8 families are eligible to participate. Learn more about the Family Self-Sufficiency program.
Tenant Based Housing Choice Voucher
The Section 8 Rental Assistance program is a tenant-based rental assistance (voucher) program funded by HUD. THDA is one of 28 public housing agencies (PHA) in Tennessee that administer the Program. THDA administers its Program in 72 of 95 Tennessee counties. The purpose of the Program is to enable eligible low-income households to obtain decent, safe and sanitary housing by the PHA paying a portion of rental costs (including utilities) directly to a landlord in the private rental market. Participating households may select a unit of their choice. Learn more about the Tenant Based Housing Choice Voucher program.
Weatherization Assistance
The Weatherization Assistance Program is a federal program designed to assist households below 200% of the federal poverty standards improve the energy efficiency of their homes. The funds are awarded to a network of community service agencies throughout the State. Learn more about the Weatherization Assistance Program.
Programs for Rental Housing Partners
Community Investment Tax Credit
Financial institutions may obtain a credit against the sum total of taxes imposed by the Franchise and Excise Tax Laws when qualified loans, qualified investments, grants or contributions are extended to eligible housing entities for engaging in eligible low-income housing activities. Learn more about Community Investment Tax Credits.
Low Income Housing Tax Credits
A Low-Income Housing Tax Credit (LIHTC) is a credit against federal income tax liability each year for 10 years for owners of and investors in affordable rental housing. Learn more about Low Income Housing Tax Credits.
Multifamily Tax-Exempt Bond Authority
The Bond Authority program, like the LIHTC program, supports rehabilitation, acquisition and rehabilitation, and new construction of rental units. Municipalities request an allocation of the state’s bond authority and sell bonds in support of housing development. Learn more about the Bond Authority program.
Section 8 Project-Based Rental Assistance (Contract Administration)
The Section 8 Contract Administration and Compliance Division manages the Housing Assistance Payment contracts between HUD and Section 8 property owners across Tennessee. THDA processes monthly payments to owners, oversees annual contract renewals and rent adjustments with property agents, reviews and approves special claims, contract opt-outs and terminations, handles issue calls from residents, and conducts Management and Occupancy Reviews. Learn more about Contract Administration.
Programs for Homeownership Partners
Great Choice and Great Choice Plus
Great Choice offers a low fixed rate 30-year first mortgage loan. Great Choice Plus combines the Great Choice first mortgage with the Plus, providing the borrower with up to 5% of the sales price for down payment and closing cost assistance. The Great Choice Plus second mortgage loan has a 0% rate with no monthly payments. Learn more about Great Choice and Great Choice Plus.
Homeownership for Heroes
The Homeownership for Heroes program offers a 1/2-percent reduction on THDA’s Great Choice first mortgage loan for active and retired members of the military. Learn more about Homeownership for Heroes.
Homebuyer Education
THDA provides nonprofit organizations with tools to teach homebuyer education classes. THDA maintains on its website a list of certified homebuyer education trainers who can help consumers as they consider purchasing a home. Learn more about our Homebuyer Education Initiative.
New Start Loan
The New Start Loan Program is designed to promote the construction of new homes for low and very low-income Tennesseans. The New Start Loan Program is delivered through non-profit organizations with established programs for the construction of single-family housing for low and very low-income households. Learn more about our New Start Loan Program.
Programs for Government & Nonprofit Partners
Competitive Grants
Competitive Grants are awarded twice a year to develop and/or preserve affordable rental housing for the elderly and those with special needs, including persons with mental, physical, or developmental disabilities; individuals recovering from substance addiction; victims of domestic violence; veterans with multiple needs; youth aging out of foster care; and ex-offenders re-entering society. Eligible applicants are local communities, non-profit agencies, public housing authorities, and development districts. Learn more about the Competitive Grants program.
Creating Homes Initiative – 2
The Creating Homes Initiative – 2 Program provides funding to expand permanent recovery housing options for individuals recovering from an Opioid Use Disorder (OUD). Learn more about the Creating Homes Initiative – 2.
Emergency Repair
The Emergency Repair Program allocates funds to correct, repair, or replace an essential system and/or critical structural problem that poses an immediate danger to life, safety, or health of low-income homeowners who are elderly (60+) or disabled. The program is administered statewide by specific regional development districts or human resource agencies. Learn more about the Emergency Repair Program.
Emergency Solutions Grants
THDA administers the federally-funded Emergency Solutions Grants (ESG) Program to help improve the quality of emergency shelters for the homeless; to help meet the costs of operating and maintaining emergency shelters; to provide essential services so that homeless individuals have access to the assistance they need to improve their situation; to provide street outreach services to the homeless; and to provide emergency intervention assistance and rapid re-housing services to prevent homelessness and to obtain permanent housing. Learn more about the Emergency Solutions Grants Program.
HOME
Under the HOME Program, THDA funds local housing programs designed to promote the production, preservation, and rehabilitation of affordable housing for individuals and families of low- and very low-income. These funds are awarded to cities, counties and non-profit organizations through an annual competitive grant process. Learn more about the HOME Program.
Home Modifications and Ramps
The Home Modifications and Ramps Program provides funding to construct ramps and make other home modifications to assist persons with disabilities gain better access to their homes. This program is administered statewide through United Cerebral Palsy of Middle Tennessee. Learn more about the Housing Modification and Ramp Program.
National Housing Trust Fund
The National Housing Trust Fund provides grants for the rehabilitation and new construction of rental housing for extremely low income households. Learn more about the National Housing Trust Fund program.
Rebuild & Recover
Rebuild & Recover provides funds to assist eligible communities recover from a natural disaster. Grants are made to the city or county. Learn more about Rebuild & Recover.
