The Tennessee Housing Development Agency has several reduced rate mortgage products to aid in purchasing a new home.

The New Start Mortgage Tier I program offers 0% interest rate loan secured by a first mortgage secured for 75% of appraised value. In order to qualify for the New Start Mortgage Tier I, a household must:

• Have less than $30,720 annual income.
• Have not owned a house within the last three years.

The New Start Mortgage Tier II program offers 3% interest rate loan secured by a first mortgage secured for 75% of appraised value. In order to qualify for the New Start Mortgage Tier II, a household must:

• Have less than $35,850 annual income.
• Have not owned a home within the last three years.

The Great Rate Mortgage offers below market interest rate loans secured by a first mortgage (6%). In order to qualify for the Great Rate Mortgage, a family must meet the following criteria.

• Household size 1-2, total household income must be less than $51,200.
• Household size 3+, the total household income must be less than $58,880.

The Great Start Mortgage offers a loan at a slightly higher interest rate than the Great Rate Mortgage but offers assistance with the down payment and closing costs (7%). The loan is secured by a first mortgage.