THDA Great Choice Plus: up to $10,000 forgivable, or up to 5% of price.
Great Choice Plus is the down payment assistance piece of Tennessee's THDA program. It's a second lien that rides alongside a THDA Great Choice first mortgage and covers your down payment, your closing costs, or both. There are two versions, and picking the right one is mostly a question of how long you'll keep the home.
The two Great Choice Plus options, side by side
THDA gives you a choice between a smaller amount you never pay back (if you stay put) and a larger amount you repay monthly. Here's the honest comparison.
| No-payment (forgivable) | Amortizing (with payment) | |
|---|---|---|
| Amount | Up to $6,000 or $10,000 | Up to 5% of sales price (max $15,000) |
| Interest rate | 0% | Same as your first mortgage |
| Monthly payment | None | Yes, amortized over 30 years |
| Forgiveness | Forgiven at end of 10 years | Not forgiven |
| When it's due | Only if you sell or refinance before year 10 | Balance due on first-mortgage payoff or refinance |
| Best for | Buyers who plan to stay ~10 years | Buyers who need more up front and can carry a small second payment |
How the forgiveness actually works. The $6,000 or $10,000 sits behind your main mortgage as a silent second at 0% with no monthly payment. Keep the home and don't refinance for 10 years, and THDA forgives the whole balance, it's gone. Sell or refinance in, say, year 6, and you repay the balance from your proceeds at closing. There's no penalty for that; you just don't get the forgiveness you didn't earn yet.
How to decide: forgivable vs. amortizing
Most Tennessee first-time buyers we work with take the forgivable option. The logic is simple: if $6,000 or $10,000 covers your gap and you're buying a home you plan to live in for a decade, why carry a second payment for money you'll never owe? You keep more monthly cash flow and walk away clean at year 10.
The amortizing option earns its place in two situations. First, when you need more than $10,000 to 5% of a $300,000 price is $15,000, which can close a bigger gap on down payment plus closing costs. Second, when you expect to move or refinance well before 10 years; in that case the forgiveness clock on the no-payment option won't finish anyway, so the amortizing structure and its lower first-mortgage pricing can net out better. Mike's take: for most buyers staying put, forgivable wins; for buyers stretching to afford the home or planning a short stay, run the amortizing math.
Who qualifies for Great Choice Plus?
Great Choice Plus rides on the Great Choice first mortgage, so you qualify for both together. The core requirements:
- Credit score: 640 minimum.
- Debt-to-income: 45% maximum.
- Purchase price: $500,000 or less (statewide, effective August 1, 2026).
- Income: under your county's THDA limit, see the county income table.
- Loan type: FHA, VA, or USDA/Rural Development first mortgage (the conventional path uses Freddie Mac HFA Advantage instead).
- Homebuyer education: required; owner-occupied within 60 days of closing.
- First-time buyer: generally no ownership in the last 36 months, waived in targeted counties and for qualifying veterans.
Great Choice Plus is not subject to federal recapture tax, and there's no prepayment penalty on the assistance. Military members, first responders, and K-12 teachers should look at Homeownership for Heroes, which adds a 0.5% rate reduction and pairs with the same assistance.
How to apply for Great Choice Plus in Tennessee
You apply through a THDA-approved participating lender, that's us. We check your county's income limit, confirm your credit and price fit the program, choose the forgivable or amortizing option with you, and originate the Great Choice first mortgage and the Great Choice Plus second together so they close at the same table. Start with a 20-minute call and we'll tell you exactly which option fits.
Great Choice Plus questions
What is THDA Great Choice Plus?
Great Choice Plus is THDA's down payment assistance, a second lien you add to a THDA Great Choice first mortgage to cover your down payment and closing costs. It comes in two forms. A no-payment option of up to $6,000 or $10,000 at 0% that is forgiven after 10 years, or an amortizing option of up to 5% of the sales price (maximum $15,000) repaid monthly at the same rate as your first mortgage.
Is Great Choice Plus forgiven?
The no-payment option is. Both the $6,000 and $10,000 versions carry 0% interest, no monthly payment, and are forgiven at the end of a 10-year term. You repay the balance only if you sell or refinance the home before the 10 years are up. The 5% amortizing option is not forgiven; you repay it in monthly installments.
Which Great Choice Plus option should I choose?
If you plan to stay in the home about a decade, the forgivable $6,000 or $10,000 option is usually best: you owe nothing after year 10 and carry no second payment. If you need more than $10,000 up front and can carry a small monthly second payment, the amortizing option (up to 5% of price, max $15,000) provides the larger amount. We model both against your numbers.
How do I qualify for Great Choice Plus?
You must qualify for and take a THDA Great Choice first mortgage, have a minimum 640 credit score, a maximum 45% debt-to-income ratio, a purchase price of $500,000 or less, household income under your county limit, and complete homebuyer education. The assistance is available on FHA, VA, and USDA/Rural Development loans.
Ready to run your numbers?
We'll check your county's income limit and compare the forgivable and amortizing options against your real scenario.