THDA Great Choice: East Brainerd Buyer’s DPA Guide

Buying in East Brainerd but worried about the down payment? You are not alone. Many Hamilton County buyers have solid income and good credit, yet find the upfront cash a hurdle. This guide explains how THDA’s Great Choice Home Loan and Great Choice Plus down payment assistance can help, what it takes to qualify in our area, and the exact steps to get started. Let’s dive in.

What Great Choice offers

THDA’s Great Choice is a 30-year fixed-rate mortgage available through participating lenders. You can pair it with Great Choice Plus down payment assistance. Great Choice works with FHA, VA, USDA, and eligible conventional loans, and THDA also offers a Freddie Mac HFA Advantage option with a similar DPA structure. You can explore these loan types on THDA’s program pages for Great Choice and HFA Advantage.

Two Great Choice Plus DPA options

• Deferred forgivable second: $6,000 at 0% interest. It is forgiven at year 30 but becomes due if you sell or refinance before then. See THDA’s overview of down payment assistance options.
• Amortizing second: Up to 5% of the sales price, capped at $15,000. It is a 30-year second mortgage with monthly payments at the same interest rate as the first mortgage. Funds can cover down payment and closing costs. Details are on THDA’s down payment assistance page.

Who qualifies in Hamilton County

• Minimum credit score: THDA generally requires a 640 minimum. Homebuyer education is required if you use DPA. See THDA’s eligibility and partner guidance.
• First-time buyer rule: Usually you must be a first-time buyer, which means no ownership of a principal residence in the past 3 years. THDA may waive this in targeted areas, and veterans or qualified military may also be eligible. Review THDA’s guidance for repeat or exempt buyers.
• Income and purchase price limits: THDA sets county-specific household income and acquisition cost limits. Hamilton County buyers must meet the current limits for the application date. Confirm the latest figures on THDA’s FAQ and limits resources or with a THDA-approved lender.
• Other rules: Loans are 30-year fixed and follow mortgage insurance rules for FHA, VA, USDA, or conventional. THDA notes federal recapture provisions if you sell within the first nine years. See Eligibility Requirements & Conditions.

East Brainerd price reality check

Recent trackers show East Brainerd median sale prices often in the mid 300s to mid 400s. That means the county purchase price limit can be the make-or-break factor for DPA eligibility. Before you write an offer, verify Hamilton County’s current purchase price limit for your household size with a THDA-approved lender.

How to use Great Choice in East Brainerd

1. Get preapproved with a THDA-approved lender. Participating lenders know the paperwork and limits. Start with THDA’s partner resources.

2. Complete required homebuyer education. Education is mandatory when using DPA. Confirm approved providers and timing on THDA’s Eligibility Requirements & Conditions.

3. Confirm Hamilton County limits. Ask your lender to check the latest income and purchase price limits on THDA’s FAQ and limits page.

4. Choose your DPA option. Pick the $6,000 deferred forgivable second or the amortizing second up to 5% with a $15,000 cap. Review details on THDA’s down payment assistance page.

5. Align the contract and closing. Make sure the purchase agreement and closing disclosures show how DPA and any seller credits are applied. If leftover DPA funds will be used toward the selling agent or broker commission, your lender and closing agent must document it correctly. See the Tennessee REALTORS summary of THDA’s lender notice about this topic here.

Choosing your DPA option

• Consider the $6,000 deferred option if you want the smallest payment today and plan to stay long term. Remember, it is due if you sell or refinance before year 30.
• Consider the amortizing option if you need more than $6,000 for down payment or closing costs. You will make monthly payments on the second loan for 30 years, at the same rate as the first.
• Either way, complete homebuyer education and talk with a THDA-approved lender about total monthly costs and how DPA interacts with your loan type. Review THDA’s DPA breakdown.

Watch-outs and fine print

• Income and price limits change. Always verify Hamilton County’s current limits early in your home search. See THDA’s FAQ.
• Loan type differences. Underwriting follows FHA, VA, USDA, or conventional rules, and lenders may have overlays. Review THDA’s eligibility page.
• Early sale or refinance. The $6,000 deferred second becomes due if you sell or refinance before it is forgiven at 30 years. The amortizing second is paid monthly from day one. See THDA’s DPA page.
• Recapture tax. Federal recapture provisions can apply if you sell within nine years. See THDA’s Eligibility Requirements & Conditions.

Local tips to stay competitive

• Get preapproved early and confirm limits before touring homes. In a neighborhood like East Brainerd, prices can approach county caps quickly.
• Build in time for education and second-loan paperwork. DPA adds extra steps at closing, so plan your timeline with your lender and agent.
• Coordinate credits. If using seller concessions and DPA, clarify how each dollar is applied on the closing disclosure. If any DPA could apply to commission, ensure documentation follows the current lender notice summarized by Tennessee REALTORS.

If you want a clear, step-by-step path to using THDA in East Brainerd, you do not have to figure it out alone. Reach out to Deonne Taylor for local guidance, introductions to THDA-approved lenders, and a purchase plan that fits your budget and timeline.

FAQs

THDA basics: What is Great Choice and Great Choice Plus?

• Great Choice is THDA’s 30-year fixed mortgage that can pair with Great Choice Plus down payment assistance, which offers a $6,000 deferred forgivable second or an amortizing second up to 5% with a $15,000 cap; see THDA’s program details and loan options.

Eligibility in Hamilton County: Do I have to be a first-time buyer?

• Generally yes, unless you buy in a THDA-targeted area or qualify as a veteran or eligible military; see THDA’s repeat and exemption guidance.

DPA amounts and repayment: Will I have to pay it back?

• The $6,000 deferred second is forgiven at 30 years but becomes due if you sell or refinance earlier; the amortizing second requires monthly payments for 30 years; see THDA’s DPA overview.

Loan pairing: Can I use THDA with FHA, VA, or USDA?

• Yes, Great Choice works with FHA, VA, USDA, and eligible conventional loans; see THDA’s program page.

County limits: How do I check Hamilton County income and purchase price caps?

• Ask a THDA-approved lender to confirm today’s figures or review THDA’s FAQ and limits resources before house hunting.

Process steps: Where do I find approved lenders and homebuyer education?

• THDA lists participating lenders and education providers on its site; start with the partner resources page and confirm approved counselors with your lender.