Advertisement
For brevity’s sake, this article will provide an overview for the THDA program rather than detail each of the 3 loans THDA offers (Great Rate, Great Advantage, and Great Start).
The THDA loan programs were designed to offer help to low to moderate income buyers in TN seeking to purchase an affordable home.
- the loans are always 30 year terms with fixed rates.
- the borrower must qualify for an FHA, USDA Rural Development, or VA loan program before the loan can “become” a THDA subsidized loan program. The vast majority of THDA loans are FHA, since FHA loans have the broadest in eligibility requirements. Minimum credit score for any THDA loan is 620 as of right now.
- THDA loans can effectively make FHA loans near-100% or 100% financing when combined with available THDA grant money, a “community” 2nd mortgage program like The Housing Fund, or THDA’s “Stimulus” 2nd mortgage program.
There are 3 basic loan types: Great Rate (0% assistance), Great Advantage (2% assistance), and Great Start ( 4% assistance)
- THDA loans limit origination fees to 1% and discount points to.25%, which simply protects the buyer from getting overcharged.
What TN Home Buyers Need to Know About THDA Loans
There are many pro’s and con’s associated with a CalPERS Home Loan. 4- CalPERS, as of Oct. 19th are now doing loans up to $729,750.00 with the same great rates as loans under $417,000.00.
Posted in