Can You Use a THDA Loan in Franklin and Middle Tennessee?
All ArticlesYes, if the file fits. Great Choice is a 30-year fixed THDA mortgage with down payment help, a 640 credit floor, and county income and price caps. Williamson County is not a targeted area. Confirm the current chart on THDA.org.
Yes. A lot of Franklin and Middle Tennessee buyers can use a THDA Great Choice loan, as long as the file actually fits. THDA is the Tennessee Housing Development Agency. Great Choice is their 30-year fixed mortgage for moderate-income buyers, usually insured by FHA or USDA, with a published 640 credit floor and county income and purchase-price caps.
It is not a free house and it is not automatic because you live in Tennessee. Down payment help is a second mortgage. Education is required. If you are a repeat buyer in Williamson County, the first-time rule still applies unless you are military or we find another product. I will tell you if THDA is the wrong tool.
What THDA actually is
THDA is a state housing agency, not a bank. They set the rules. Approved lenders originate the loan. Barrett Financial Group can run THDA files when the borrower and the property qualify.
The core product is Great Choice: 30 years, fixed rate, principal residence only. Most files are FHA or USDA-RD. Heroes files can use VA. THDA also has a Freddie Mac HFA Advantage option (GC97) that treats income a little differently and does not use the same first-time-homebuyer test as classic Great Choice. We pick the box that matches the file, not the brochure.
The 640 floor, and why it bites
THDA says everyone on the application needs a credit score of at least 640. That is higher than FHA's typical 580 conversation. It is also a hard number, not a vibe.
I have had a THDA file die two days before closing when a collection reported and the score fell from 640 to 621. They re-pulled. If you are on 640, you are not safe. We pull fresh credit, hunt collections, and sometimes put you on FHA or a gift structure instead of walking a cliff.
Down payment help: Great Choice Plus
If you qualify for Great Choice, you can often add Great Choice Plus to cover down payment and closing costs. THDA currently publishes two shapes.
Deferred: a forgivable second of $6,000 or $10,000, 0% interest, forgiven after 10 years. If you sell or refinance before that, the balance is due. Amortizing: up to 5% of the sales price, maximum $15,000, 30-year second at the same rate as the first, with a monthly payment.
Which dollar amount you get is a file question. Do not budget $15,000 because a Facebook post said so. We look at the live THDA menu for that lock week.
Franklin the city is not Franklin County
This is the mix-up that wastes a Zoom. The city of Franklin is in Williamson County. THDA also lists Franklin County (Winchester area) as a targeted county for repeat buyers. Those are different places.
On THDA's targeted-area list, Williamson County is not a targeted county. Wilson, Sumner, and Cheatham are not listed as targeted counties either. Davidson and Rutherford have specific census tracts, not the whole county. Repeat buyers in most of Franklin, Brentwood, and Nolensville still need the three-year first-time test or military eligibility.
Targeted lists change. Before you write an offer as a repeat buyer, we check the address against the current THDA map, not a blog from last year.
Income, price, and why Williamson is tight
THDA is built for low- and moderate-income buyers. Household income and purchase price cannot exceed the cap for that county and household size. THDA publishes the chart. I do not quote last year's numbers as if they were law.
Williamson and parts of Davidson often bump the price cap before they bump the rate. A listing that works on conventional with a gift can miss THDA by $20,000. That is not a reason to stretch. It is a reason to price PITI on the real parcel and pick the program that closes.
Homeownership for Heroes, including teachers
On May 5, 2026, THDA expanded Homeownership for Heroes to full-time K-12 teachers in Tennessee public or private schools. The program already covered veterans, active-duty and National Guard, firefighters, EMTs and paramedics, and state and local law enforcement.
THDA describes a 0.50% interest-rate reduction on Great Choice and cites about $125 a month in savings. That is their illustration, not a quote on your file. Heroes still sits on Great Choice rules: 640, income, price, education, occupancy.
Education, recapture, and the fine print
A THDA-approved homebuyer education class is required for Great Choice, Great Choice Plus, and Heroes. Take it early. Do not schedule it the week of closing.
If you sell within the first nine years, federal recapture tax can apply. That is an IRS and THDA conversation, not a slogan. Occupancy has to be your principal residence. Investment property and second homes are out.
Manufactured and off-site construction have their own THDA path. Condos and new construction add overlays. We read the property before we promise the product.
When I will tell you not to use THDA
If your score is 640 on a good day. If a collection is about to report. If the price is over the county cap and you are hoping the appraiser saves you. If you can gift 3.5% and sleep at night on FHA. If you earned VA. If waiting 90 days gets you a conventional file that is cheaper over five years.
THDA is a strong tool for the right Tennessee buyer. It is a bad religion. Call or text me at (615) 955-0461 and we will run the actual menu against your numbers.
Next: The Loan That Died Two Days Before Closing: What Every Homebuyer Should Know About THDA Loans, What It's Like Buying a Home in Franklin, TN: Neighborhoods, Prices, and What to Expect, and 50-Year Mortgage Pros and Cons: Who Should Use It and Who Should Avoid It. Or take the Free Home Affordability Check.
Sources and what to verify
This is general mortgage education, not a commitment to lend. Rates, programs, and eligibility depend on the borrower, the property, and investor guidelines. Confirm tax, school, zoning, and legal facts with the official source.
Questions about your specific situation? Call or text Keith directly. No call centers, no runaround.
Book a 15-min ZoomFrequently Asked Questions
Yes, if you meet Great Choice rules on credit, income, purchase price, occupancy, and first-time status. The city of Franklin sits in Williamson County, which is not a THDA targeted county. Repeat buyers there usually need the three-year first-time test, military eligibility, or a different loan. Confirm income and price caps on the current THDA chart.
THDA publishes a minimum credit score of 640 for everyone on the loan application. In files I have closed, they also re-pull before closing. A collection that reports late can kill a 640 file. If you are sitting on the number, we talk about FHA, a gift, or waiting before we put you on THDA.
Great Choice Plus is a second loan, not a grant. THDA currently publishes a deferred option of $6,000 or $10,000 at 0% (forgiven after 10 years, due if you sell or refinance sooner) and an amortizing option of up to 5% of the sales price, capped at $15,000, at the same rate as the first mortgage. Which amount you get depends on the file. We check the live THDA menu.
Usually yes. THDA defines first-time as not occupying a home you owned as a principal residence in the past three years. That requirement is waived in targeted counties or targeted census tracts, and for qualified military and spouses. Williamson County is not targeted. Some census tracts in Davidson and Rutherford are. Verify the address on THDA's current list.
As of THDA's May 5, 2026 announcement, Heroes includes veterans, active-duty and National Guard, firefighters, EMTs and paramedics, state and local law enforcement, and full-time K-12 teachers in Tennessee public or private schools. THDA describes a 0.50% rate reduction on Great Choice. Confirm occupation rules with a participating lender and the current THDA page.
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