Tennessee

THDA Great Choice Home Loan

The Great Choice Home Loan program, provided by the Tennessee Housing Development Agency (THDA), is available for both first-time and repeat homebuyers. This program is applicable to conventional, FHA, VA, or USDA-RD loans, offering 30-year fixed-rate loans.

Highlights:

• • 30-year fixed interest rate home loan available through private banks and lenders.
  • Focuses on first-time homebuyers, U.S. military veterans, and homebuyers in targeted areas.
  • Designed to make homeownership available and affordable for Tennesseans of middle/moderate income.

Eligibility:

• • First-time homebuyers, repeat buyers, and military veterans.
  • Minimum credit score requirement: 640.
  • Must not exceed the household income and purchase price limits, vary by county.
  • Participation in a THDA-approved homebuyer education course

Benefits:

• • 30-year term for affordable monthly payments.
  • Fixed interest rate for the entire loan lifespan.
  • Down payment assistance options through Great Choice Plus – Amortizing (6% of the purchase price) or Great Choice Plus – Deferred ($6,000) in the form of second mortgage
  • Homebuyers can purchase off-site manufactured homes using the Great Choice Home Loan.

Requirements:

• • Minimum credit score: 640.
  • Income and purchase price limits vary by county.
  • Participation in a THDA-approved homebuyer education course.
  • Repayment of Great Choice Plus – Amortizing upon selling the home or refinancing the first mortgage.
  • Repayment of Great Choice Plus – Deferred only if the home is sold or the first mortgage is refinanced.

How to Apply:

• • Attend a THDA-approved homebuyer education class.
  • Contact one of THDA-approved lenders and REALTORS® trained for the Great Choice Home Loan program.
  • For more details, visit their website at https://thda.org/homebuyers or call THDA’s Homeownership Hotline at 615.815.2100.

Homeownership for Heroes

The Homeownership for Heroes program by THDA celebrates and honors the men and women who serve, offering financial assistance through the Great Choice Home Loan with additional benefits.

Highlights:

• • Reduced interest rate by half a percentage point (0.5%)
  • Waived first-time homeowner requirements statewide for qualified military or veterans
  • Borrow up to 100% of the home’s purchase price with a VA or USDA-RD loan, or 96.5% with FHA loans

Eligibility:

• • Active Duty Military, National Guard, and Veterans
  • State and Local Law Enforcement Officers
  • EMTs/Paramedics
  • Firefighters

Benefits:

• • 30-Year Term: Monthly payments spread out across 30 years for affordability
  • Fixed Interest Rate: The interest rate remains constant throughout the loan’s life
  • Minimum Credit Score: A credit score of at least 640 is required for all applicants
  • Income and Purchase Price Limits: Maximum limits vary by county
  • Down Payment Assistance: Includes the option for Great Choice Plus financial assistance with down payment and/or closing costs

Requirements:

• • Attend a THDA-approved homebuyer education class.

How to Apply:

• • Contact one of THDA-approved lenders and REALTORS® trained for the Homeownership for Heroes program.
  • For more details, visit their website at https://thda.org/homebuyers or call THDA’s Homeownership Hotline at 615.815.2100.

Great Choice Plus

If you qualify for a Great Choice Home Loan, the Great Choice Plus program offers down payment assistance through two options: Deferred Option (No Payments) and Amortizing Option (Payment).

Highlights:

• • Deferred Option provides a forgivable second mortgage of $6,000 with 0% interest and deferred payments until the end of the 30-year term.
  • Amortizing Option offers 6% of the sales price as a second mortgage with monthly payments over 30 years at the same interest rate as the first mortgage.

Eligibility:

• • Must receive any of the Great Choice loans below:
• First-time Homebuyers
• Repeat Homebuyers
• Military & Veteran Homebuyers

Benefits:

• • Amortizing Option: A second mortgage with monthly payments over a 30-year term, covering 6% of the sales price. Similar interest rates as the first mortgage apply.
  • Deferred Option: A second mortgage with deferred payments for a $6,000 loan amount over a 30-year term. No monthly payments are made, and the loan is forgiven at the end of the term. In the case of selling or refinancing before the term ends, the second mortgage balance becomes due.

Requirements:

• • Borrowers receiving down payment assistance through Great Choice Plus must also obtain a Great Choice loan.
  • Compliance with the terms and conditions of both primary Great Choice Home Loan and secondary Great Choice Plus loan is crucial, with penalties for non- compliance, including immediate repayment.

How to Apply:

• • Explore your options based on your homebuyer status (First-time, Repeat, Military/Veteran).
  • Attend a THDA-approved homebuyer education class.
  • Contact one of THDA-approved lenders and REALTORS®
  • For more details, visit their website at https://thda.org/homebuyers or call THDA’s Homeownership Hotline at 615.815.2100.

City of Memphis Down Payment Assistance Programs

The City of Memphis, through its Division of Housing and Community Development (HCD), offers financial assistance to its citizens through the Down Payment Assistance Program (DPA), aiming to help individuals meet the financial requirements of purchasing a home. DPA provides funds to assist with down payment and closing costs required to complete the closing.

Highlights:

• • Various programs available to assist homebuyers meeting eligibility requirements.
  • Maximum assistance is up to 10% of the sales price, not exceeding $25,000.
  • Eligible properties must be located within Memphis city limits and assessed for Memphis City taxes.
  • Programs include:
• Citywide DPA (CWDPA)
• Memphis Housing Authority (MHA)
• Section 8 Homeownership Program (SHAPE)
• Targeted Area DPA (TADPA).

Eligibility:

• • Must be a first-time homebuyer with no ownership interest in the last three years.
  • Income must not exceed 80% of the Area Median Income (AMI) determined by HUD.
  • Completion of HUD-certified housing counseling required.
  • Property must serve as the primary residence for a 5-year affordability period.
  • Property must pass required inspection prior to submission to the DPA Department.

Benefits:

• • Maximum amount of assistance is up to 10% of the sales price, not to exceed $25,000 (subject to funding availability).
  • Assistance provided as a deferred payment loan with no monthly payments during the 5-year affordability period.

Requirements:

• • Completion of HUD-certified housing counseling.
  • Property must be located within Memphis city limits and assessed for Memphis City taxes.
  • Must meet income and purchase price limits, employment, and location requirements.
  • Must maintain the property as primary residence for 5-year or 10-year affordability period.
  • Second lien placed on the property for 5 or 10 years, released if all terms are met.
  • Minimum investment of 1% of the sales price required.
  • Various homebuyer incentive programs available based on specific criteria.

How to Apply:

1. All applications for DPA are made through an approved DPA Lender listed on the program website. Email [email protected] for inquiries.
2. The lender will complete the DPA Application and gather all required documents. Once the first mortgage loan is approved, the lender will submit the file to the DPA Department for processing.
3. Complete the Income-Asset Questionnaire and submit it to your lender at application.
4. After DPA review and approval, the lender will be notified, and the approval time is 10 business days from receiving a complete application.
5. Sign the DPA Note, Deed, and other closing documents after signing the first mortgage loan documents.
6. For additional questions or information, contact the DPA Department at [email protected] or (901) 636-7474. Office hours are Mon-Fri, 8:00 – 4:30.

NeighborhoodLIFT Program

This is a program through Affordable Housing Resources (AHR) in collaboration with Wells Fargo and NeighborWorks® America to provide down payment assistance to eligible homebuyers in Davidson, Rutherford, Sumner or Wilson County.

Highlights:

• • Provides eligible homebuyers with $15,000 of down payment assistance on qualified properties.
  • Offers homebuyer education to prepare individuals for finding, financing, and managing the financial responsibilities of homeownership.
  • Assistance is not limited to first-time buyers.

Eligibility:

• • Income limits apply based on borrowers’ annual income in combination with household size, with higher limits for certain groups such as military service members, veterans, law enforcement officers, teachers, firefighters, and emergency medical technicians.
  • Properties must be located in Davidson, Rutherford, Sumner, or Wilson County.
  • Property must serve as the primary, owner-occupied residence of the buyer(s).
  • Eligible property types include detached homes, townhouses, condominiums, 1-4 unit properties, and Planned Unit Developments (PUDs).

Benefits:

• • $15,000 of down payment assistance available to eligible homebuyers.
  • Access to homebuyer education to enhance financial literacy and preparedness for homeownership.
  • Assistance is not limited to first-time buyers, providing opportunities for a broader range of individuals.

Requirements:

• • Meet income limits based on annual income and household size.
  • Purchase a qualified property located in Davidson, Rutherford, Sumner, or Wilson County.
  • Property must serve as the primary, owner-occupied residence.
  • Property types include detached homes, townhouses, condominiums, 1-4 unit properties, and Planned Unit Developments (PUDs).

How to Apply:

1. Get pre-approved for a mortgage by an approved participating lender.
2. Find a house you want to buy and get a signed purchase and sale agreement to purchase that house. You must be in contract and have a signed purchase and sale agreement in hand to apply for NeighborhoodLIFT funds.
3. Register for homebuyer education (Click here for HBE Info) Successful completion of the eight-hour HBE course is required prior to closing.
4. Explore other homebuyer programs in your area that can be combined with LIFT.

Chattanooga Neighborhood Enterprise Down Payment Assistance

• • Aims to assist homebuyers with covering the closing costs and down payments
  • Eligible individuals can receive up to $15,000 in down payment assistance, which will be provided as a second mortgage loan.
  • Repayment of this loan will commence on a monthly basis following the purchase date, with amortization beginning in the first year at a rate aligned with that of the first mortgage, but not less than 3%.
  • Eligibility for this program is determined based on household size and income.
  • This program is available in the following counties:
• Bledsoe, Bradley
• Marion, Grundy
• Hamilton
• McMinn
• Meigs
• Polk
• Rhea
• Sequatchie.

Texas

TDHCA My First Texas Home

My First Texas Home by Texas Department of Housing and Community Affairs (TDHCA) is a program available exclusively to first-time homebuyers and veterans that provides a 30-year, low- interest rate mortgage with down payment and closing cost assistance option.

Highlights:

• • Statewide availability
  • Exclusive to first-time homebuyers and qualified veterans
  • 30-year term low-interest-rate mortgage
  • Offers flexible down payment and closing cost assistance ranging from 2% to 5% of the loan amount
  • 30 years, 0% interest 2nd Lien
  • 3-Year Forgivable 2nd Lien Available

Eligibility:

• • Be first-time homebuyers (not owned a home in the past 3 years)
  • Exemptions from this requirement:
  • Homebuyer or spouse is a qualified veteran, honorably discharged as evidenced by DD-214, and have not previously qualified for and received a mortgage financed through a mortgage revenue bond program by reason of the qualified veterans exception for the First Time Homebuyer status.
  • Subject property in a Qualified Targeted Census Tract
  • Subject property must be located within the State of Texas
  • Have a minimum credit score of 620
  • Maximum Debt-to-Income (DTI): 55% (subject to change)
  • Maximum Income and Purchase Price Limits apply.
  • Obtain mortgage approval from one of The Texas Homebuyer Program approved lenders
  • Fulfill other program-specific requirements. Additional credit and underwriting guidelines may apply.

Benefits:

• • 30-year mortgage at a low interest rate
  • Up to 5% in interest-free down payment assistance
  • Option for a 3-Year Forgivable 2nd Lien
  • Flexible assistance for down payment and closing costs (2%, 3%, 4%, or 5% of the loan amount)
  • Potential additional savings by combining with a Mortgage Credit Certificate (MCC)

Requirements:

• • Eligible with a credit score as low as 620
  • Meet income and purchase price limits (vary by county)
  • Completion of a homebuyer education course through Texas Homebuyer U
  • All borrowers must occupy the subject property as principal residence within 60 days of mortgage loan closing

How to Apply:

• • Complete a mandatory homebuyer education course through Texas Homebuyer U.
  • Connect with The Texas Homebuyer Program’s approved lenders to get prequalified.
  • Fulfill eligibility criteria, including credit score, income, and property value.
  • Locate a Dedicated Realtor to Guide you through the Process.

TDHCA My Choice Texas Home

TDHCA’s My Choice Texas Home program is designed to assist both first-time and repeat homebuyers with a low-rate mortgage and up to 5 percent assistance for covering closing costs and down payment.

Highlights:

• • 30-year low-interest-rate mortgage
  • No first-time homebuyer requirement.
  • Flexible down payment and closing cost assistance options (2%, 3%, 4%, and 5% of the loan amount).
  • 3-Year Forgivable 2nd Lien Available
  • Higher Income Limits compared to My First/MCC

Eligibility:

• • First-time or repeat homebuyer
  • Income Limits Apply
  • Subject property must be located within the State of Texas.
  • Minimum Credit Score: 620.
  • Homebuyer Education required for all borrowers including Non-Purchasing Spouse
  • Occupancy of the subject property within 60 days of mortgage loan closing.
  • Mortgage loan must conform to the requirements of FHA, VA, USDA, or Fannie Mae for non-U.S. citizen applicants.

Benefits:

• • Statewide availability
  • Competitive 30-year low-interest rate mortgage.
  • Offers flexible down payment and closing cost assistance ranging from 2% to 5% of the loan amount.
  • Option for a 3-Year Forgivable 2nd Lien

Requirements:

• • Minimum credit score of 620.
  • Maximum Debt-to-Income (DTI): 55% (subject to change).
  • Income limits apply.
  • Other requirements may apply.

How to Apply:

• • Complete a mandatory homebuyer education course through Texas Homebuyer U.
  • Connect with The Texas Homebuyer Program’s approved lenders to get prequalified.
  • Locate a Dedicated Realtor to Guide you through the Process.

301

TSAHC Home Sweet Texas Home Loan Program

The Texas State Affordable Housing Corporation (TSAHC) is dedicated to assisting Texans in realizing their dream of homeownership. As a non-profit organization established by the Texas Legislature, TSAHC offers the Home Sweet Texas Home Loan Program, providing home loans and down payment assistance to low and moderate-income families.

Highlights:

• • 30-year fixed-rate mortgage.
  • Up to 5 percent down payment assistance.
  • Down payment assistance options: grant or deferred forgivable second lien loan.
  • Eligible loan types: Fannie Mae HFA Preferred, Freddie Mac HFA Advantage, FHA, VA, or USDA.
  • No interest and no monthly payments on the second mortgage.

Eligibility:

• • Minimum credit score: 620.
  • Income and purchase price limits based on county, household size, and whether buying in a targeted or non-targeted area.
  • Not exclusive to first-time homebuyers.

Benefits:

• • Access to a 30-year fixed-rate mortgage.
  • Up to 5 percent down payment assistance.
  • Option to receive down payment assistance as a grant (non-repayable) or a deferred forgivable second lien loan.
  • Second lien loan forgiven after three years.
  • Eligibility for various loan types: Fannie Mae HFA Preferred, Freddie Mac HFA Advantage, FHA, VA, or USDA.

Requirements:

• • Minimum credit score of 620.
  • Meet income and purchase price limits based on county, household size, and whether buying in a targeted or non-targeted area.

How to Apply:

• • Take the Eligibility Quiz here to see if you qualify.
  • Apply with an Approved Lender.
  • Take a Homebuyer Education course.
  • Find a REALTOR® familiar with TSAHC’s programs
  • Complete the application process with required documentation.

Note: Further details and specific requirements can be obtained through an approved lender. You may also contact TSAHC’s Homeownership Hotline: 877-508-4611 or email [email protected]

TSAHC Homes for Texas Heroes Program

The Texas State Affordable Housing Corporation (TSAHC) is committed to assisting Texas Heroes in realizing their dream of homeownership. As a non-profit organization created by the Texas Legislature, TSAHC offers the Homes for Texas Heroes Program, providing home loans and down payment assistance to teachers, police officers, firefighters, EMS personnel, corrections officers, veterans, nursing faculty, and allied health faculty.

Highlights:

• • 30-year mortgage.
  • Up to 5 percent down payment assistance.
  • Assistance options: grant or deferred forgivable second lien loan.
  • Assistance is either a grant (non-repayable) or a deferred forgivable second lien loan.
  • Eligible professions include educators, police officers, firefighters, EMS personnel, veterans, correction officers, and nursing faculty.

Eligibility:

• • Works in a public service profession such as teacher, police officer, firefighter, or an eligible veteran (List of eligible occupations can be found here)
  • Minimum credit score: 620.
  • Meet income and purchase price limits.
  • Non-exclusive to first-time homebuyers.

Benefits:

• • Access to a 30-year mortgage.
  • Up to 5 percent down payment assistance.
  • Option to receive assistance as a grant or deferred forgivable second lien loan.
  • Assistance is forgiven after three years.
  • Eligibility for various professions, including educators, police officers, firefighters, EMS personnel, veterans, correction officers, and nursing faculty (List of eligible occupations can be found here).
  • Additional eligibility for a Mortgage Credit Certificate (MCC) for first-time homebuyers.
  • MCC usage with Down Payment Assistance offers an additional $500 in savings.

Requirements:

• • Minimum credit score of 620.
  • Meet income and purchase price limits.
  • Completion of an approved homebuyer education course before closing.
  • No specific requirement to work with a designated REALTOR^®.

How to Apply:

• • Complete the online Eligibility Quiz to determine program suitability.
  • If eligible, contact a participating lender in your area to initiate the application process.
  • Submit all required documents to the lender; no direct submissions to TSAHC.
  • Mandatory completion of an approved homebuyer education course before closing.
  • Note: Detailed program information, specific requirements, and eligible occupations can be obtained through TSAHC or participating lenders.

Dallas Homebuyer Assistance Program (DHAP)

The Dallas Homebuyer Assistance Program (DHAP) strives to make homeownership accessible to low- and moderate-income individuals by offering financial assistance during the home purchase process.

Compliant with federal, state, and local regulations, DHAP extends its support through three program extensions.

Highlights:

• Dallas Homebuyer Assistance Program: Aids low to moderate-income homebuyers within the city limits of Dallas.
• Targeted Occupations Homebuyer Assistance Program: Supports professionals in Education and Librarian Services, Healthcare, and Protective Services.
• Anti-Displacement Homebuyer Assistance Program (DHAP 10): Assists current Dallas residents who have lived within the city limits of Dallas for a period of at least 10 years collectively.

Eligibility:

Dallas Homebuyer Assistance Program:

• • U.S. Citizen, Permanent Resident, or Eligible Immigration Status.
  • Annual household income ≤ 80% of the Area Median Income (AMI).
  • Executed real estate sales contract and mortgage lender approval required for a first lien mortgage.
  • Assistance limits based on need, location, and additional DHAP requirements.
  • Home maximum sales price limits based on property type.

Targeted Occupations Homebuyer Assistance Program:

• • U.S. Citizen, Permanent Resident, or Eligible Immigration Status.
  • Homebuyer incomes between 80% and 120% of the AMI.
  • Executed real estate sales contract and mortgage lender approval required.
  • Intended for specific occupations in Education, Healthcare, and Protective Services.
  • Assistance based on need and may not exceed $50,000.
  • No sales price limit. Subject to additional DHAP requirements.

Anti-Displacement Homebuyer Assistance Program:

• • U.S. Citizen, Permanent Resident, or Eligible Immigration Status.
  • Current resident of Dallas with at least 10 years of residency within city limits.
  • Homebuyer incomes between 50% and 120% of the AMI.
  • Executed real estate sales contract and mortgage lender approval required.
  • Assistance up to $50,000.
  • No sales price limit. Subject to additional DHAP requirements.

Benefits:

• • Financial assistance tailored to income and location.
  • Assistance options include grants and deferred forgivable second lien loans.
  • Flexibility in sales price limits and housing payment constraints.
  • Assistance based on affordability (subject to DHAP requirements)

Requirements:

• • Completion of DHAP-approved homebuyer education courses.
  • Eligible properties must appraise for at least 100% of the sales price.

How to Apply:

• • Attend a pre-purchase Homebuyer Education Course through one of the DHAP and HUD Approved Education Providers
  • Contact a DHAP-approved lender for prequalification.
  • Submit an online application through the Neighborly Software Portal.
  • Contact a real estate agent with prequalification and DHAP conditional eligibility.
  • Undergo the final review process, anticipate up to 45 days.

Funding Limitation:

• • Determined based on need, second lien, forgivable deferred loan.
  • Interest-free with no monthly payments, prorated annually based on the affordability period (residency term of the loan).
  • Partial repayment required upon sale, lease, transfer or other disposition of the property.
  • Funding subject to availability, first-come, first-served basis.
  • Prequalified applicants need executed sales contract and mortgage loan approval.

Austin’s Down Payment Assistance Program

The Down Payment Assistance Program in Austin aims to support income-eligible first-time homebuyers in achieving homeownership. To qualify for assistance, completion of homebuyer education classes is mandatory.

Highlights:

• • Assistance for income-eligible first-time homebuyers.
  • Required completion of homebuyer education classes.
  • Covers down payment, closing costs, and pre-paid expenses.
  • Maximum assistance up to $40,000.
  • Home sales price limit: $614,054.70.

Eligibility:

• • Must be a first-time homebuyer.
  • Should not have owned a home in the last three years.
  • Individuals who have been displaced or divorced are eligible.
  • Purchase of a single-family home or condominium within Austin’s Full Purpose city limits.
  • Low-income status, defined as at or below 80% Median Family Income (MFI) (see table below)

Requirements:

• • Property must be within Austin City Limits.
  • Completion of a Home Buyer Education Course and obtaining an official Certificate of Completion.
  • Mortgage loan approval from a participating lender.

How to Apply:

• • Confirm property location within Austin City Limits.
  • Complete the Home Buyer Education Course.
  • Obtain an official Certificate of Completion.
  • Gather all required documentation by the program.
  • Get approved for a mortgage loan from a participating lender.
  • Submit the Down Payment Assistance Application through your loan officer.