Buying your first home in Millington and wondering how to cover the down payment and closing costs? You’re not alone. Many Shelby County buyers use THDA’s Great Choice mortgage and its Great Choice Plus assistance to make the numbers work. In this guide, you’ll learn what the program is, who may qualify, where to check today’s limits and lenders, and how to write a strong offer in Millington using this financing. Let’s dive in.
Great Choice basics
THDA’s Great Choice is a mortgage program that helps eligible Tennesseans access below‑market financing. When you pair it with Great Choice Plus, you can add down‑payment assistance as a second mortgage to reduce your cash to close. Because program details can change, always start with the official THDA Great Choice program page for the latest terms and options.
Two ways Great Choice Plus can help
Great Choice Plus typically comes in two forms. Your lender will help you choose the option that fits your goals.
- Deferred 0% second mortgage. This assistance is usually a subordinate loan with no monthly payment while you live in the home. Repayment is commonly due if you sell, refinance, or move out. Confirm current terms on the THDA program page.
- Low‑interest repayable second mortgage. This option adds a small monthly payment over a set term, usually at a below‑market rate. The exact rate and term can vary by program cycle and lender, so verify with an approved lender and THDA.
Who may qualify in Shelby County
- Primary residence only. The property must be your principal residence. Investment or vacation homes are not eligible.
- First‑time homebuyer rule. THDA generally defines a first‑time buyer as someone who has not owned and occupied a primary residence in the last three years. Certain exceptions may apply for veterans and targeted areas. Review the current definition on the THDA Great Choice page.
- Income and purchase‑price limits. THDA sets household income and maximum purchase‑price limits by county and household size. These change over time, so check the current THDA tables for Shelby County on the Great Choice page before you shop.
- Lender and education requirements. You must use a THDA‑approved lender and, if you use down‑payment assistance, complete THDA‑approved homebuyer education. Find lenders on THDA’s Find a Lender page.
- Property types. Single‑family homes and some condos may qualify. Manufactured homes and certain condo projects can have restrictions. Confirm eligibility with your lender early.
How to choose your DPA option
Both assistance types can lower your upfront cash needs, but they work differently over time.
- If you want the lowest monthly payment now, the deferred 0% option may help, since it often has no monthly payment while you live in the home.
- If you prefer to build equity faster and keep future refinance or sale choices simpler, the repayable option may fit, since you pay it down monthly.
Because terms change, compare both options on the THDA program page and confirm with a THDA‑approved lender.
Step‑by‑step: Use Great Choice in Millington
- Check basics. Review your household size and income against Shelby County’s current limits and confirm first‑time status if applicable on the THDA program page.
- Complete homebuyer education. If you plan to use assistance, finish THDA‑approved education before you write offers.
- Talk to multiple approved lenders. Use THDA’s Find a Lender tool and request written pre‑approvals that specify the Great Choice Plus option you will use.
- Pick your DPA structure. Decide between deferred or repayable assistance and have your lender outline how the second mortgage will be documented.
- Write a lender‑aligned offer. Coordinate contingencies and timelines with your lender, including any appraisal and DPA approval milestones, so sellers see a clear path to closing.
Make a competitive Millington offer
You can use THDA financing and still write a strong, clean offer if you anticipate common questions from sellers and listing agents.
- Seller‑paid costs. Many loan types allow seller credits toward closing costs up to certain caps. Credits can reduce your cash at closing without changing your assistance amount. Your lender will confirm caps for FHA, VA, USDA, or conventional.
- Credits vs price drops. A seller credit preserves the contract price, which can help with appraisal risk. A price reduction lowers your loan amount and may affect assistance percentages. Ask your lender which route supports your plan.
- Rate buydowns and lender credits. You can often combine DPA with a rate buydown if the loan structure permits it. Confirm with your lender before you present terms in an offer.
- Appraisal gaps. If an appraisal comes in low, your primary loan and assistance may need to be restructured, or you may need extra funds. Plan your appraisal language with your agent and lender.
- Multiple incentives. In some cases you can combine Great Choice Plus with other programs, such as a Mortgage Credit Certificate, if available. Confirm compatibility on the THDA program page and with your lender.
Quick offer checklist for THDA buyers
- Pre‑approval from a THDA‑approved lender that references Great Choice and your chosen DPA option.
- Proof of completed THDA homebuyer education if you are using assistance.
- Clear financing and appraisal contingencies aligned to lender and THDA timelines.
- Contact info for your lender so the listing agent can verify program details quickly.
- Closing date that reflects THDA processing and second‑lien documentation.
Common mistakes to avoid
- Waiting to compare lenders. THDA works through participating lenders, and underwriting overlays vary. Compare at least two to three that offer Great Choice.
- Skipping condo or property‑type checks. Some properties have restrictions. Confirm eligibility before making an offer.
- Guessing income or price limits. Limits change, and they differ by loan type. Verify Shelby County’s current tables on the THDA Great Choice page.
- Changing price strategy mid‑contract. Shifting from credits to a price reduction can change your assistance math. Loop in your lender before amending terms.
Local guidance you can trust
If Millington is on your list, you’re shopping in a part of Shelby County with a mix of established neighborhoods and convenient access to the broader Memphis suburbs. Using THDA Great Choice thoughtfully can make your first purchase more affordable without sacrificing offer strength. With the right plan, you can pair down‑payment assistance with smart contract terms and a lender who closes on time.
You don’t have to navigate this alone. If you want a calm, step‑by‑step path from pre‑approval to keys in hand, reach out for local guidance and an offer strategy that works with THDA financing. Schedule your consultation with Unknown Company today.
FAQs
What is THDA Great Choice for Millington buyers?
- It’s a Tennessee Housing Development Agency mortgage program that offers below‑market financing and optional Great Choice Plus down‑payment assistance. Start with THDA’s Great Choice overview for current details.
How do I find THDA‑approved lenders in Shelby County?
- Use THDA’s consumer tool to find a participating lender and contact a few to compare rates, fees, and DPA options.
What are the current Shelby County income and price limits?
- Limits change periodically and vary by loan type and household size. Review the latest tables for Shelby County on THDA’s Great Choice page before you apply.
Will Great Choice Plus increase my monthly payment?
- A deferred 0% second typically has no monthly payment while you live in the home. A repayable second adds a small monthly payment. Your lender can estimate the exact impact.
Can I use Great Choice with FHA, VA, USDA, or conventional loans?
- Yes, Great Choice often pairs with these loan types. Your lender will confirm the best fit and any assistance caps based on the loan product and your profile.
What happens if I sell or refinance later?
- Deferred assistance is usually due when you sell, refinance, or move out. A repayable second follows its set amortization. Review your DPA note and confirm details with your lender and THDA.
