The two options
The deferred option is a $6,000 second mortgage at 0% interest with no monthly payment. Stay thirty years and it is forgiven. Sell or refinance before then and it is repaid from proceeds.
The amortising option provides up to 5% of the purchase price, capped at $15,000, repaid over the life of the loan at the same rate as the first mortgage. More money, but it carries a payment.
How it sits with the first mortgage
Great Choice Plus goes on top of a THDA Great Choice first mortgage, which is typically FHA or USDA insured.
That means the first mortgage rules still apply: FHA's 3.5% down becomes largely or entirely covered by the assistance, which is the point.
Qualifying, and the Memphis angle
There are income and purchase price limits set by county, a credit standard, and a homebuyer education requirement.
In Shelby County, where property tax runs about 1.30% of value, covering the down payment matters more than usual because the monthly payment is already carrying a heavier tax line.
Questions people ask
Is the $6,000 really forgiven?
On the deferred option, yes, if you stay thirty years. Sell or refinance sooner and it is repaid from the proceeds.
Do I need to be a first time buyer for THDA?
Generally you must not have owned a home in the last three years, though there are exceptions in targeted areas.
Where do I apply?
Through a THDA approved lender. Ask directly whether they offer Great Choice and Great Choice Plus, because not every lender does.
Assistance program terms, limits and availability are set by the housing agencies and change without notice. Eligibility is determined by the agency and the lender, not by this page. Not a commitment to lend.
Get your numbers
Six questions. Jason answers personally, usually the same day.
Thanks — that is on its way to Jason. He will reach out shortly with your numbers.