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THDA raises eligibility for its down payment assistance program

THDA raises eligibility for its down payment assistance program


The Tennessee Housing Development Agency a has increased the maximum household income to more than $100,000 in Sumner and other Middle Tennessee counties to qualify for a home loan with down payment assistance.

Starting August 1, the maximum income to buy a home in Davidson and surrounding counties
with one of THDA’s Great Choice Home Loans is rising to $104,860 for a household of three or
more people. That’s an increase of $8,680 over the current cap.

For a one- or two-person household, the new cap will be $89,880, an increase of $7,440.

THDA’s Board of Directors approved the new income limits Tuesday afternoon, acknowledging that many families who can afford a monthly house payment don’t have the money for a down payment.

“Our state is enjoying a lot of economic growth right now, along with low unemployment, and that’s resulting in fast-growing home prices in many areas,” said THDA Executive Director Ralph M. Perrey. “Our new income limits will keep us in line with the changes we see in wages and home prices by county.”

All of THDA’s Great Choice Home Loans include the option of financial assistance to help cover the loan’s down payment and closing costs.

“The down payment is the number one barrier that keeps renters from becoming homeowners,”
said THDA Executive Director Ralph M. Perrey. “We designed our down payment assistance
program to give qualified homebuyers a little boost over that barrier so their families can enjoy
the financial benefits of homeownership.”

THDA’s down payment assistance typically comes in the form of a Great Choice Plus second
mortgage loan of up to five percent of the home’s purchase price. The second mortgage accrues
no interest and requires no monthly payments. Homebuyers are only required to repay exactly
what they borrowed when they sell, refinance, or move out of the home.

For a limited time, qualified homebuyers in certain ZIP Codes have the option of a flat $15,000
second mortgage loan in place of the typical five-percent loan.

“People are regularly surprised to find out just how wide a range of homebuyers we’re able to
help with our down payment assistance program,” Perrey said. “By design, we serve families
who can ably afford a monthly mortgage payment if only they had help with the down payment. That’s our niche, and it’s a very important one in order to keep our state’s housing market
moving in the right direction.”

The new $89,880 and $104,860 income limits are for Davidson and surrounding counties, including Cheatham, Sumner, Robertson, Rutherford, Williamson, and Wilson Counties, as well as Dickson County. THDA revises its income limits annually based on the Area Gross Median Family Income (AGMFI) as provided by HUD and the average area home purchase price (AAPP) as provided by the IRS.

The new income limits for every Tennessee county are available at

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