Everything You Need to Know...
According to a memo from Rhonda Ronnow, the director of single family loan operations of the Tennessee Housing Development Agency (THDA), an interest reduction for the Great Choice Mortgage Loan Program will take effect on Wednesday, October 7, 2020.
The original interest rate, valued at 3.00% will now decrease to 2.75% (3.970% APR).
In addition, the interest rate for the Homeownership for the Brave Mortgage Loan Program will decrease to 2.25% (2.456% APR).
The memo also says that all interest rate locks received by the THDA on and after Wednesday, October 7, 2020 will be locked in the lower rate.
All interest rate locks received by the THDA before Wednesday, October 7, 2020 will be locked in the higher rate for both programs.
Why is This Important? For buyer's agents, this is important news you absolutely need to share with your clients. It simply means that it's even more affordable to purchase a new home under this program. We understand that you may have a lot of questions surrounding this news. That is why we've compiled all possible questions below with their respective answers.
Questions: 1. What is the THDA?
The THDA is a state-wide program that provides competitive home loan options for Tennessee residents in the form of 30-year fixed loans and downpayment assistance.
2. What is the Great Choice Mortgage Loan Program
The Great Choice Mortgage Loan Program offers a 30-year, fixed-rate mortgage to first-time, repeat, and military veteran homebuyers. It's used commonly with FHA, VA, USDA-RD and uninsured conventional loans.
3. What is the Homeownership for the Brave Mortgage Loan Program?
This program offers a .50% reduction on the THDA's Great Choice Mortgage Loan Program for both active and retired members of the U.S. Armed Forces.
4. How can I prevent any delays with my loan application because of this change?
To prevent any delays for a loan application, please verify that all submitted documents reflect the interest rate based on the when it is submitted.
5. What are the time limits for rate locks on existing and new/proposed construction?
Rate locks for existing construction are for 90 days. Rate locks for new/proposed construction are for 180 days.
Give Us a Call Today! To speak with one of our loan officers familiar with the THDA program, please give us a call at (901) 759-4400 to be paired with one of them.