Prepackaged Home Mortgages and Renovation Loans Through THDA and USDA Programs

The Tennessee Housing Development Agency and USDA offer a variety of home financing solutions for individuals and families. The following programs outline available financing options. You can find out more information by visiting links provided through each program or contacting our office directly.

Tennessee Housing Development Agency (THDA)

As the State’s housing finance agency, the Tennessee Housing Development Agency (THDA) is a self-sufficient, independently funded, publicly accountable entity of the State of Tennessee. THDA’s mission is to ensure that every Tennessean has access to safe, sound, affordable housing opportunities. More information about THDA programs can be found online at

THDA Home Loan Programs

As a state agency, the Tennessee Housing Development Agency (THDA) created the Great Choice Home Loan program to make mortgage financing available and affordable to Tennesseans of middle/moderate income.

Every Great Choice Home Loan is a 30-year, fixed interest rate home loan, which is the most common mortgage type in America. They’re available through banks and lenders throughout the state of Tennessee.

Here are the basic facts about a Great Choice Home Loan:

  • 30 year term
  • Fixed interest rate
  • Minimum credit score of 640

What are the minimum and maximum loan amounts?
The minimum loan amount is $5,000. The maximum loan amount is $25,000.

What are the terms of the loans?

For 2015 ARC Distressed Counties:  Fentress, Pickett, and Van Buren

  • Maximum Loan Amount of $25,000
  • 0% Interest Rate
  • No monthly payment
  • 5-Year Loan Term
  • No Prepayment Penalty

For 2015 ARC At-Risk Counties:  Clay, Jackson, Macon, Overton, White, and Warren

  • Maximum Loan Amount of $25,000
  • 0% Interest Rate
  • Repayable
  • 5-Year Loan Term
  • No Prepayment Penalty

** Post Purchase Homebuyer Education will be required for all ARLP loans and must be completed prior to closing.

THDA Homeownership

THDA’s Great Choice Loan Program offers 30-year, fixed rate mortgages and down payment assistance to eligible first-time, repeat and military homebuyers. Borrowers must meet certain requirements and conditions, including credit history, income limits and cost of home. is Tennessee’s free housing locator. It is free for landlords to list housing, and free for tenants to search for housing. Affordable (income based and properties) and market rate properties, including those that accept Housing Choice Vouchers, may be found on the site. The service is ADA Title II 508 compliant; works with assistive technology; uses Google to translate content into almost 100 languages. For those needing additional listing or search assistance, a toll-free, bilingual call center is available.

Additional Homeownership Links:

If you have any questions or need additional information, please contact the Single Family Help Desk at 615-815-2100 or

THDA Community Programs

The Community Programs Division administers a variety of housing programs supported through federal, and state THDA funding. The Division awards grants to local governments and non-profit agencies to meet the housing needs of low income Tennesseans.

THDA Rental Programs

The Housing Choice Voucher (HCV) or “Section 8 Voucher” program is a federal rental assistance program funded through HUD where very low-income families, the elderly and the disabled receive assistance to afford decent, safe and sanitary housing in the private market. As a state housing agency, THDA administers the Housing Choice Voucher program in 72 Tennessee counties, between 4 regional offices. For more information, please contact Rental Housing Programs at 615-815-2164.

THDA Low Income Housing Tax Credit (LIHTC) Program

The Low-Income Housing Tax Credit is a credit against federal income tax liability each year for 10 years for owners and investors in the development of low-income rental housing. The amount of tax credits is based on reasonable costs of development, as determined by THDA, and the number of qualified low-income units.

THDA Research and Planning

For statewide and county-based information about housing and housing affordability, the THDA Research and Planning Division has multiple resources to gain insight into the state’s housing market.

USDA Section 502 Direct Loan Program

Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.

Counties Served

Cannon, Clay, Cumberland, DeKalb, Fentress, Jackson, Macon, Overton, Pickett, Putnam, Smith, Van Buren, Warren, White.

USDA Rural Development Cookeville Area Office

Jerry Jolley, Area Director

931-528-6539 x 2 | 800-342-3149 x 1493

390 S. Lowe Ave, Ste. K | Cookeville, TN 38501

For additional information about these programs, contact our office:

P: 931.432.4111