of THDA joins The Housing Hour this week to explain one of the hottest First Time Homebuyer programs in Tennessee. Lindsay Hall is Chief Administrative Officer of Single Family Programs and Rhonda Ronnow is Director of Single Family Loan Operations. Lindsay and Rhonda explain the new $15,000 Downpayment program for selected zip codes areas in Tennessee and how you may be able to apply!
If you’re purchasing a home with a Great Choice Home Loan in one of the participating ZIP Codes, you can apply for our HHF-DPA program, which offers $15,000 in assistance regardless of the home’s purchase price.
Participating ZIP Codes:
How It Works
If you’re approved, your financial assistance comes in the form of a forgivable $15,000 second mortgage loan on your home.
The second mortgage has a 0% interest rate and no monthly payments for the 10 year term. The loan is forgiven at 20% per year in years 6 through 10.See forgiveness schedule below.
|After Year||What you owe if you sell, refinance, or move out|
|0 – 5||$15,000|
To be eligible, you must purchase an existing home (new construction is not allowed) using a Great Choice first mortgage loan in an eligible ZIP Code, and you must complete a THDA-certified Homebuyer Education class with an agency approved to work with HHF-DPA homebuyers. Find an approved HHF-DPA class provider in your area.
If that sounds like a great choice to you, here’s how to find out if you qualify for a Great Choice Home Loan:
Additional terms and conditions apply. Talk to an approved lender to help determine if you qualify and if this program may be right for you. You must comply with the terms and conditions of the Great Choice Home Loan Program and HHF-DPA second mortgage loan or penalties may apply, including immediate repayment.
You must meet THDA homebuyer education requirements, which consists of pre-purchase and post purchase education (typically combined into one “combo” class), prior to closing your loan. You can meet this requirement by completing the class online or by attending an in-person class through an approved HHF-DPA counseling agency.
It is best to sign up for the class as early in the homebuying process as possible, and we strongly encourage you to complete the class at least four weeks before your closing date.
Find the approved HHF-DPA counseling agency closest to you:
If you prefer to take an in-person class, please identify the provider closest to you that offers in-person Pre-Purchase & Post-Purchase Combo classes. Please note that some providers on the calendar are not approved for HHF-DPA classes.
Be sure to identify the provider closest to you that provides online classes. Please note that some providers on eHome America are not approved for HHF-DPA.
Upon completion of both courses, a counselor will contact you within 2 business days to complete a one hour follow up session. You may contact the participating agency directly for additional assistance.