Is THDA Still Available in Tennessee in 2026?
Realtors across the Tri-Cities region report that buyers keep asking the same question: is that THDA program still a thing? The short answer is yes — and it's more useful than most buyers realize.
Yes. THDA Great Choice loans are active and available through approved lenders in Tennessee in 2026. First-time buyers can pair them with up to $15,000 in down payment assistance. Veterans can use THDA even if they've owned a home before.
What Is THDA?
THDA stands for the Tennessee Housing Development Agency — a state agency that has been helping Tennesseans become homeowners since 1973. Their flagship product is the Great Choice Home Loan: a 30-year fixed-rate mortgage available through a network of approved lenders across the state, including right here in the Tri-Cities.
THDA doesn't lend directly to buyers. Instead, they work through approved lenders — local loan officers like me — who originate the loan under THDA's guidelines. The rate and terms come from THDA; the service and guidance come from your lender.
What Does THDA Great Choice Offer in 2026?
The core product is a 30-year fixed-rate mortgage with a THDA-set interest rate (typically competitive with or slightly above market, depending on current conditions). The real value is what you can stack on top of it.
| Feature | Details |
|---|---|
| Loan type | 30-year fixed rate |
| Down payment assistance | Great Choice Plus: $6,000 deferred or up to $15,000 amortizing |
| Minimum credit score | 640 (all borrowers) |
| First-time buyer required? | Yes — unless you qualify for Homeownership for Heroes (see below) |
| Compatible loan types | FHA, VA, USDA, or Conventional (Fannie Mae HFA Preferred) |
| Property type | Primary residence in Tennessee |
The Down Payment Assistance: Two Options
THDA's Great Choice Plus program is what makes the loan genuinely useful for buyers who are short on cash to close. There are two structures:
Option 1 — $6,000 Deferred Second Mortgage: No monthly payment. The $6,000 sits as a silent second lien. It's forgiven entirely at 30 years, or becomes due if you sell or refinance before then. For buyers who plan to stay put, this is essentially free money.
Option 2 — Up to $15,000 Amortizing Second Mortgage: Up to 5% of the purchase price (max $15,000) as a second mortgage with its own monthly payment over the life of the loan. Higher assistance, but you're paying it back monthly alongside your first mortgage.
Which option makes sense depends on your purchase price, how long you plan to stay, and what your monthly budget looks like. That's a conversation worth having before you decide.
Homeownership for Heroes: The Veterans Angle
This is the part most veterans — and most agents — don't know about. THDA has a specific program called Homeownership for Heroes designed for active-duty military, veterans, National Guard, and Reserves. It does two things:
1. Waives the first-time buyer requirement. Veterans who have owned a home before can still use the Great Choice program. This is a big deal — it opens THDA to a much larger pool of veteran buyers.
2. Offers a reduced interest rate on the Great Choice loan compared to the standard rate.
The most powerful combination: a veteran uses a VA loan for the first mortgage (zero down payment, no mortgage insurance) and stacks THDA's Homeownership for Heroes assistance on top to cover closing costs. The result is a home purchased with little to no out-of-pocket expense.
As a Marine Corps veteran and THDA-approved lender, this is a combination I help structure regularly. If you served and you're buying in East Tennessee, ask me about it.
Does THDA Work in Johnson City, Kingsport, and Bristol?
Yes. THDA is a statewide program and applies across all of Tennessee — including Washington County (Johnson City), Sullivan County (Kingsport, Bristol), Carter County (Elizabethton), Unicoi County (Erwin), and the rest of the Tri-Cities and surrounding area.
Income and purchase price limits vary by county, so the exact numbers depend on where you're buying and how many people are in your household. I can pull the specific limits for your situation in a few minutes — there's no commitment required to find out if you qualify.
Why Agents Keep Getting Asked About It
Buyers hear about THDA from friends, family, or a quick Google search and then ask their agent: "Is that still a thing?" The confusion usually comes from a few sources: past program changes, misconceptions that state programs run out of money, or simply not knowing where to start.
THDA Great Choice is a permanent program — it doesn't have a fixed pool of funds that runs dry like some local DPA grants. As long as you meet the income and credit requirements and work with an approved lender, the program is available.
If you're a buyer who's been told THDA is too complicated or not worth it, get a second opinion. In many cases it adds meaningful assistance with minimal complexity.
Frequently Asked Questions
Is THDA still available in Tennessee in 2026?
How much down payment assistance does THDA offer?
Do I have to be a first-time buyer to use THDA?
Can I use THDA with a VA loan?
What credit score do I need for THDA?
Does THDA work in Johnson City and the Tri-Cities area?
Find Out If You Qualify for THDA in East Tennessee
I'm a THDA-approved lender serving Johnson City, Kingsport, Bristol, and the entire Tri-Cities area. I can tell you in one conversation whether THDA makes sense for your situation — and how to stack it with a VA, USDA, or FHA loan if it does.