“For a lot of people who are looking to buy their first home, our Great Choice loans really are a great choice,” THDA Executive Director Ralph Perrey said.
The loan program offers down payment assistance and 30-year fixed interest rate mortgage loans to first-time homebuyers, repeat homebuyers and military members with credit scores of at least 640.
“When people go to our website, they will find the lenders who work with us and they will find a very competitive rate on a 30-year, fixed-rate no gimmick mortgage with closing cost assistance,” Perrey explained. “We have some underwriting flexibility that we can offer because we’re the state’s housing finance agency. ... The message for the lenders is ‘Think about customers you can’t reach now with your other loan products that you might be able to serve with a THDA loan.’ We believe for a lot of those lenders we offer a market expanding opportunity.”
A two-person household earning about $60,000 and larger families earning up to about $76,000 could take advantage of the loan product, Perrey noted.
“We think there are a lot of people in the right income guidelines with sufficient credit,” he added. “Maybe what’s holding them back is they need a little help with the down payment or closing costs, and we can provide that. We want people to know that. We need our lender partners to know that. We discovered we have a great many lenders on our list who were sending us two or three loans a year. We hadn’t stayed in touch with them. They weren’t current on our products or process. ... There’s been a perception that THDA just helped poor people.”
THDA said borrowers are subject to household income limits and home value limits, which vary by county.
For more, go to www.GreatChoiceTN.com.