THDA Loans- The Great Advantage Program
ByTHDA Loans- Great Advantage Program
Of the 3 different THDA loans (TN Housing Development Agency) available, the Great Advantage program falls right in the middle, in terms of the financial assistance offered and interest rate. This program is ideal for the first time buyer who might already have some or most of their down payment and closing costs in the bank, but who still need a little help. THDA loans are typically based on an FHA loan, so a borrower would need a 3.5% down payment. Whereas the Great Start (GS) program offers a 4% grant to qualified buyers for down payement or closing costs, the Great Advantage (GA) program offers a 2% grant. While the assistance is less, the interest rate is over .25% lower than than the Great Start Program. Currently the GA program rate is only 5.05% which is right in line with market FHA rates. This is particularly impressive when you consider you’d get a $3000 grant for a $150,000 loan amount.
Like the GS program, qualified borrowers would need to complete an 8 hour homebuyer education class prior to closing. For more information about THDA Loans, see my other articles on the subject.
