THDA Great Choice Plus: Forgivable vs. Amortizing DPA
THDA gives you two ways to take down payment assistance: a no-payment second that is forgiven at 10 years, or a larger amortizing second with a monthly payment. Picking the right one comes down to how much help you need and how long you will stay.
The core trade-off
Both options cover your down payment and closing costs so you can buy. The difference is what happens after closing. The forgivable second adds nothing to your monthly payment and vanishes at 10 years, but it caps at $10,000. The amortizing second can go higher, up to 5% of the price or $15,000, but you make a monthly payment on it at your first-mortgage rate, and it is not forgiven. Lighter monthly cost, or more help up front, that is the decision.
Forgivable vs. amortizing at a glance
| Feature | Forgivable (no payment) | Amortizing (with payment) |
|---|---|---|
| Amount | $6,000 or $10,000 | Up to 5% of price (max $15,000) |
| Interest | 0% | Same rate as your first mortgage |
| Monthly payment | None | Yes, 30-year second |
| Forgiveness | Forgiven at 10 years | None; balance due at payoff/refinance |
| If you sell/refi early | Repaid if before year 10 | Repaid from proceeds |
| Best for | Lowest monthly cost | Buyers who need the most help |
Both require a THDA Great Choice first mortgage. Neither DPA second is subject to recapture tax; the Great Choice first mortgage may be, with a THDA Recapture Reimbursement option.
Who picks which
Buyers who are stretching to make the monthly payment work almost always take the forgivable second, a zero-payment second keeps the debt-to-income ratio lower and there is nothing to repay if they stay past 10 years. Buyers who need the maximum help at closing, and can carry a small extra payment, lean toward the amortizing option for the full $15,000. If you expect to move within a few years, the forgivable option means you repay it early from your sale proceeds, so run that scenario before you decide.
Structure verified August 2026 against THDA (both the $6k and $10k no-payment options are forgiven at 10 years). This is not a commitment to lend. Related: Great Choice Plus overview · DPA + FHA.
Common questions
What is the difference between forgivable and amortizing THDA assistance?
The forgivable Great Choice Plus second is $6,000 or $10,000 at 0% with no monthly payment, forgiven at the end of 10 years (repaid only if you sell or refinance before then). The amortizing second is up to 5% of the price (max $15,000) at your first-mortgage rate, with a monthly payment over 30 years and no forgiveness.
Which THDA option gives more money?
The amortizing option gives more, up to 5% of the purchase price or $15,000, versus the $10,000 cap on the forgivable option. The trade-off is that the amortizing second adds a monthly payment, while the forgivable second has none.
Is THDA down payment assistance forgiven?
The no-payment Great Choice Plus second ($6,000 or $10,000) is forgiven at the end of 10 years; you repay it only if you sell or refinance before then. The amortizing option is not forgiven and is repaid over time or at payoff.
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