Homebuyer Assistance

THDA’s Homeownership programs are designed for low- and moderate-income borrowers. The Great Advantage program — available with or without Stimulus Loan — offers a slightly higher interest rate loan secured by a first mortgage offering downpayment and closing cost assistance of 2%. The Great Start program offers a loan at a slightly higher interest rate, secured by a first mortgage, but offers assistance with down payment and closing costs of 4%. The Stimulus second mortgage program — available only in conjunction with Great Rate and Great Advantage — offers assistance with downpayment and closing costs of up to 3.5% of the property’s purchase price.

 

Great Start

Great Advantage

Stimulus Loan

Maximum Household Income

Varies by County (see Sales Price & Income Limits)

Varies by County(see Sales Price & Income Limits)

Varies by County (see Sales Price & Income Limits)

Maximum Sales Price (Including all incidentals)

Varies by County (see Sales Price & Income Limits)

Varies by County (see Sales Price & Income Limits)

Varies by County (see Sales Price & Income Limits)

Interest Rate

5.20% fixed rate, subject to change

4.90% fixed rate, subject to change

Fixed rate at 1% above the 1st mortgage rate

Loan Term

30 years (1st mortgage)

30 years (1st mortgage)

10 years (1st mortgage)

Loan Types

FHA, VA, USDA/RD, Conventional

FHA, VA, USDA/RD, Conventional

FHA

Mortgage Insurance or Guarantee

As required by loan type

As required by loan type

As required by loan type

Buydowns

Not allowed

Not allowed

Not allowed

Assumable

Subject to qualifying

Subject to qualifying

Subject to qualifying

Pre-Payment Penalty

No penalty

No penalty

No penalty

Subject to Recapture

Yes

Yes

N/A

Required Reserve

As required by loan type

As required by loan type

N/A

Minimum Investment

As required by loan type

As required by loan type

N/A

Closing Costs and Downpayment Assistance

4% of loan amount available to borrower(s) as assistance with down payment and closing costs. The entire 4% assistance grant must be used.

2% of loan amount available to borrower(s) as assistance with down payment and closing costs.  The entire 2% assistance grant must be used.

Second mortgage up to 3.5% of the property’s purchase price, used in conjunction with Great Rate or Great Advantage.

Homebuyer Education

Required

Required

Required

Origination Fee

Maximum 1% on 1st mortgage

Maximum 1% on 1st mortgage

Normal and customary

Discount Point

Maximum ¼% on 1st mortgage

Maximum ¼% on 1st mortgage

Not permitted

Comments are closed.