From securing an affordable mortgage to covering down payment and closing costs, first-time homebuyers face a variety of unique financial challenges. That is especially true for buyers with only a modest income.
In Tennessee, the state Housing Development Agency offers a specialized loan program for middle-income residents looking to purchase a house, build equity and provide a secure home for themselves and their families.
What benefits does the Great Choice Loan program offer?
Tennesseans who receive a loan through the Great Choice program have the benefit of affordable mortgage payments spread out over a 30-year term and a fixed interest rate that lasts for the life of the loan.
Buyers who qualify for a mortgage through the program may also be eligible for down payment and closing cost assistance in the form of a second fixed-rate loan.
Who is eligible for a Great Choice Home Loan?
To be eligible for this state-run program, the buyer must have a minimum credit score of 640 and meet certain income and purchase-price limits. In Blount County, the current cost limit of a home purchased using a Great Choice loan is $250,000 with an income cap of $73,900 for a one or two-person household and a cap of $84,985 for a household of three or more.
How can first-time buyers learn more about homeownership?
Applicants for this type of loan may also attend a homebuyer’s education course. During these virtual or in-person classes, individuals may learn about a range of topics, including household budgeting, determining what type of home will work best and how to keep up with home maintenance after moving in.