Great Choice Plus is a flagship down payment assistance program from the Tennessee Housing Development Agency (THDA). Designed to help first-time and moderate-income homebuyers, this program provides up to $6,000 in assistance to cover your down payment and/or closing costs—making it easier to achieve homeownership in Tennessee.
❓ What Is the Great Choice Plus Program?
Great Choice Plus is an add-on to the 📝 Great Choice Home Loan Program. It offers a second mortgage loan to help cover down payment and closing costs. This second loan is either:
- 📉 Forgivable over 15 years – no monthly payments or interest
- 💰 Or repayable at 0% interest over time
The forgivable option is most popular because buyers don’t repay anything if they stay in the home for at least 15 years.
✅ Who Qualifies for Great Choice Plus in Tennessee?
To be eligible for Great Choice Plus, you must:
- 👨👩👧👦 Be a first-time homebuyer or buy in a targeted area
- 🏠 Purchase a home in Tennessee as your primary residence
- 📉 Meet THDA income and purchase price limits
- 📘 Complete a THDA-approved homebuyer education course
- 💼 Use a THDA-approved lender
Veterans and military members may qualify without being first-time buyers.
💵 Benefits of Great Choice Plus
- 💲 Receive up to $6,000 in down payment or closing cost assistance
- 📉 0% interest, no monthly payments on the forgivable loan
- ⏳ Forgiven completely after 15 years of occupancy
- 🔗 Can be used with FHA, USDA, VA, or conventional loans
📈 Why Use Great Choice Plus in Tennessee?
Housing prices in cities like Nashville, Chattanooga, and Knoxville have risen in recent years, but income growth hasn’t kept pace. For many families, the main barrier to buying isn’t the mortgage—it’s the upfront cash. Great Choice Plus solves this by offering reliable, low-risk financial assistance that works for long-term homeowners.
📝 How to Apply for Great Choice Plus
- 📞 Contact a THDA-approved lender in Tennessee
- 🧾 Apply for the Great Choice Home Loan
- 🎓 Complete the required homebuyer education course
- 📂 Submit all required documentation (ID, income, tax forms, etc.)
- 🏡 Close on your home and receive the down payment assistance
📋 Program Requirements
- 📊 Minimum credit score of 640
- 📝 Debt-to-income ratio must meet THDA limits (typically ≤ 45%)
- 🏘 Property must be within the state and meet FHA or conventional guidelines
- 📘 Completion of THDA-certified homebuyer education is mandatory
💡 Tips to Maximize Your Success
- 📆 Start your application early—funds may be limited
- 📋 Use a lender experienced with THDA programs
- 🧾 Keep your documents (W-2s, pay stubs, tax returns) ready
- 📞 Ask your lender about combining this with local city or county assistance programs
🔍 Use Case Example
Emily, a school counselor in Murfreesboro, used Great Choice Plus to purchase her first home. With only $1,000 in savings, she qualified for $6,000 in forgivable assistance—covering her entire down payment. Because she plans to stay long-term, she won’t have to repay anything.
❓ FAQs – Great Choice Plus by THDA
📌 Do I have to repay the $6,000?
Not if you stay in the home for 15 years. The forgivable loan is reduced by 1/15th each year until fully forgiven. If you move or refinance early, a prorated balance will be due.
🔗 Can I use this with other assistance?
Yes! Some buyers combine Great Choice Plus with 💵 Tennessee municipal DPA programs or THDA’s Homeownership for the Brave option for veterans.
📊 What are the income limits?
They vary by county and family size. For example, in Davidson County, the income limit for a family of 2 may be around $86,000. Always confirm current numbers with your lender.
🏡 What kinds of properties qualify?
Eligible properties include single-family homes, condos, townhomes, and some manufactured homes. The home must be owner-occupied and meet THDA guidelines.
🎯 Is Great Choice Plus Right for You?
For buyers who can afford monthly payments but struggle with up-front costs, the Great Choice Plus program from THDA offers clear, predictable help to make homeownership in Tennessee possible. Whether you’re in Memphis or a small town, this program can be the key to buying your first home confidently.
📥 Apply Now via THDA’s Official Website