Every THDA program we originate in Tennessee.
Tennessee keeps it refreshingly simple: one agency, one first-mortgage family, one matching down payment assistance second. Here's each THDA program, who it's for, and how they fit together, including the Heroes rate cut for military, first responders, and teachers.
Great Choice, the first mortgage
Great Choice is THDA's core loan, funded through mortgage revenue bonds. It's a 30-year fixed first mortgage on an FHA, VA, or USDA/Rural Development loan, with a 640 minimum credit score, a 45% maximum debt-to-income ratio, and a $500,000 purchase-price cap. It can stand alone, but most buyers add Great Choice Plus to it for down payment help.
Great Choice Plus, the assistance
Great Choice Plus is the down payment assistance second lien, available only alongside a Great Choice first mortgage. You choose either a no-payment option (up to $6,000 or $10,000 at 0%, forgiven after 10 years) or an amortizing option (up to 5% of the price, max $15,000, repaid monthly). Full breakdown of both options →
Homeownership for Heroes
Homeownership for Heroes is Great Choice with a 50 basis point (0.5%) interest-rate reduction, and it's one of the strongest reasons to check THDA if you serve the public. It's open to qualifying members of the military and National Guard, veterans and their eligible spouses, state and local law enforcement officers, EMTs and paramedics, firefighters, and K-12 teachers. You need to be employed in Tennessee (or be military/veteran) and show your professional license, certification, or military documentation. Heroes buyers add the same Great Choice Plus down payment assistance through Homeownership for Heroes Plus. Veterans also may be exempt from the first-time-buyer rule.
Freddie Mac HFA Advantage
Prefer conventional financing? HFA Advantage is THDA's Freddie Mac path. It follows Freddie Mac credit and debt-ratio guidelines rather than THDA's 640/45% floors, allows combined loan-to-value up to 105% with the HFA Advantage Plus second, and can drop mortgage insurance once you reach 80% loan-to-value, something FHA can't do. HFA Advantage Plus offers the $6,000 forgivable second or the up-to-5% amortizing option.
THDA programs compared
| Program | Role | Loan types | Best for |
|---|---|---|---|
| Great Choice | First mortgage | FHA, VA, USDA/RD | Most Tennessee buyers |
| Great Choice Plus | DPA second | Pairs with Great Choice | Buyers needing down payment help |
| Homeownership for Heroes | First mortgage, -0.5% rate | FHA, VA, USDA/RD | Military, first responders, teachers |
| Heroes Plus | DPA second for Heroes | Conventional | Heroes buyers needing help |
| HFA Advantage | Conventional first | Conventional | Strong credit, want MI to drop off |
THDA sets and updates these program terms; interest rates are posted on the THDA website. Your eligibility depends on credit, income, county, and loan type.
THDA program questions
What THDA programs are available in Tennessee?
THDA offers Great Choice (the first mortgage on FHA, VA, or USDA/RD), Great Choice Plus (down payment assistance), Homeownership for Heroes and Heroes Plus (a 0.5% rate reduction plus assistance for military, first responders, and teachers), and Freddie Mac HFA Advantage with HFA Advantage Plus (the conventional path). Cornerstone originates all of them.
Who qualifies for Homeownership for Heroes in Tennessee?
Homeownership for Heroes is for qualifying members of the military and National Guard, veterans and eligible spouses, state and local law enforcement, EMTs and paramedics, firefighters, and K-12 teachers. It applies a 50 basis point (0.5%) reduction to the Great Choice interest rate and pairs with the same Great Choice Plus down payment assistance.
What is the difference between Great Choice and HFA Advantage?
Great Choice is THDA's government-loan path. FHA, VA, or USDA/RD first mortgages with a 640 minimum score. HFA Advantage is the conventional path built on Freddie Mac, which follows Freddie Mac credit and DTI guidelines and allows up to 105% combined loan-to-value with the HFA Advantage Plus assistance. Both pair with THDA down payment assistance.
Which THDA program fits you?
Tell us your county, credit range, and whether you serve the public, we'll point you at the right THDA setup.