What is the Tennessee Housing Development Agency “THDA”?

The Tennessee Housing Development Agency, referred to as THDA for short, is an organization dedicated to promoting safe, sound, and affordable housing for Tennessee residents in the low and moderate-income brackets. One of the ways it does this is through the THDA loan program.

What is a THDA Loan?

While the THDA does not offer loans in its own right, it works with lending partners in the private sector who extend favorable loans to people within the community who are best served by the THDA loan program. What do these loans have to offer low and moderate-income families seeking homeownership?

  • Fixed-rate loan terms.
  • 30-year loans.
  • Down-payment assistance grants (up to five percent).

Additionally, homebuyers who receive down-payment assistance grants are required to complete homebuyer education courses so that they can make informed decisions about their purchases.

The THDA also helps low-income households through the Homeownership Voucher Program that subsidizes mortgage payments for families currently receiving rental assistance.

Other Opportunities the THDA Offers

In addition to the THDA home loan program, the Tennessee Housing Development Agency also offers a variety of services to homeowners, including foreclosure prevention assistance and funding for housing repairs and modifications, including:

  • Weatherization Assistance
  • Tennessee Repair Loan Program
  • Emergency Repair Program

While some of these programs are widely available, others are open to select households, such as low income, seniors, veterans, and disabled homeowners or those who have special needs.

Families in Tennessee with dreams of homeownership have a friend to help with the process in the THDA loan program, provided they meet the requirements. For many low and moderate-income families, it is the only path to homeownership available to them.