Down Payment Assistance Programs in Chattanooga Tennessee

The Tennessee Housing & Development Agency or THDA offers several down payment assistance programs for the Greater Chattanooga Area.

1. Great Rate: This program offers a below par rate for first time home buyers which is generally .125% to .25% less.

2. Great Advantage: This program offers a 2% contribution for first time buyers for either closing cost or down payment assistance. This typically is higher than the Great Rate program by .25% to .50%.

3. Great Start: This program offers a 4% contribution for first time buyers for closing cost or down payment assistance. This typically is higher than the Great Advantage program by .25% to .50% and .50% to 1% higher than the Great Rate.

Lending 100% Financing – THDA

– THDA funds can be used either for down payment assistance or closing cost or both. THDA funds can also be used in combination with seller contributions, however once closing cost and the down payment requirement is met no additional credits can be offered to the borrower.

– THDA requires a 45% debt to income ratio which is lower than FHA which means a borrower can have less debt when applying for a loan.

– THDA funds do not charge for their contributions, however lenders will charge a origination charge to the borrower up to 2% (can be financed) to originated the loan. THDA does not lend directly but though approved lenders.