Offered through the Tennessee Housing Development Agency, Great Choice Plus allows applicants to access as much as 5% of the property price of a home as down payment and closing cost assistance. This is a second mortgage with 0% interest and deferred payment. The loan only has to be paid back if the property is sold or refinanced, or no longer servers as the applicant’s primary residence. However, in certain cases, the loan amount can be forgiven and does not need to be repaid.
Homebuyer education is required prior to approval for this program. Applicants also have to continue to comply with their first mortgage.
Great Choice Plus is offered to any qualified applicant who already has a Great Choice Home Loan. Applicants can be first time or repeat homebuyers, as well as military or veteran buyers. The minimum allowed credit score is 640, but if an applicant wants to improve their credit score or has trouble meeting this requirement, they can meet with a certified counselor who may be able to give them suggestions.
Applicants also have to fall within a specified household income amount and purchase price limits. These limits depend on both location and number of people in the household.
Other programs in Tennessee: