The Tennessee Housing Development Agency (THDA) provides loans to low- and moderate-income Tennesseans to help them buy their first home, refinance their existing home loan, or repair their current home. THDA loans are popular because of the range of benefits they offer, including lower interest rates, reduced fees and closing costs, and more flexible repayment terms. In addition, the agency offers grants for down payment assistance and helps qualified borrowers with closing costs.
What is a THDA Loan?
A THDA loan is a mortgage loan issued by the Tennessee Housing Development Agency. The loans are backed by either Federal Housing Authority (FHA) insurance or Veterans Administration (VA) guarantee programs. These government-backed loans provide numerous benefits for buyers of modest means such as lower interest rates and other cost savings that can make homeownership possible.
To be eligible for a THDA loan, borrowers must have an income of no more than 115% of the median income in the area where they plan to buy a home. They must also show stability in employment throughout the past two years and demonstrate good credit standing with minimal defaults on any debt obligations within the last five years. All applicants must agree to participate in homeowner education courses offered by THDA before receiving any type of loan assistance from the agency.
Benefits of a THDA Loan
One of the greatest benefits offered by THDA loans is low interest rates compared to conventional mortgages issued by banks or other lending institutions. The agency also assists qualified borrowers with closing costs, thereby reducing upfront out-of-pocket expenses for these individuals who might not otherwise be able to afford to purchase a home. Other advantages include waived lender fees for VA loans and certain discounted points for FHA applicants.
Lastly, THDA also provides grants for down payment assistance which can help further reduce initial financial burdens associated with purchasing a first home or refinancing an existing mortgage loan. This grant money does not need to be paid back if certain requirements are met.
Is a THDA Loan Right for Your Family?
THDA loans provide numerous advantages over conventional mortgage lenders by offering lower interest rates with flexible repayment terms along with grants for downpayment assistance and help with closing costs that can make homeownership feasible even for individuals of limited means. If you’re looking for this type of down payment assistance program, get started by applying today. I’ll walk you through what’s needed to successfully obtain one of these loans.
Bad or Low Credit Loans
The Tennessee Housing Development Agency (THDA) was created by the state legislature in 1973 with the purpose of providing housing assistance to low- and moderate-income Tennesseans. In the more than 40 years since, THDA has made significant advances in homeownership opportunities for residents across the state. The agency provides a range of loan products including down payment assistance grants, refinancing options, and other programs that can make home-buying more accessible.
We proudly help customers in Knox County, Hamblen County, Anderson County, Union County, Sevier County, Blount County and more.
Let us help find the right mortgage for you and your family. We'll discuss all of your loan options, what fits best for your budget and for your future plans.
With John Fleming of People's Home Equity, you're guaranteed to be in good hands during the home buying process.
We look forward to hearing from you!