Teacher Home Loans in Tennessee: THDA Homeownership for Heroes
How THDA's teacher rate discount works, which teachers qualify, pairing it with Great Choice Plus down payment help, and the county limits.
Quick answer
Tennessee teachers can use THDA’s Homeownership for Heroes program, which takes 0.50% off the interest rate on a THDA Great Choice home loan (30-year fixed FHA, VA or USDA). It is open to full-time K–12 teachers and principals at Tennessee public or private schools.
It can be paired with THDA’s Great Choice Plus down payment assistance. THDA’s usual rules still apply: a 640 credit score, homebuyer education, county income and price limits, and the first-time buyer rule.
Program details on this page were verified on THDA’s website on October 27, 2026, using THDA limits effective August 1, 2026. Program terms and eligibility are subject to THDA and lender guidelines and may change.
At a glance: THDA programs for Tennessee teachers
- Homeownership for Heroes: 0.50% off the Great Choice interest rate, for teachers since May 2026
- Who counts: full-time K–12 teachers and principals, public or private school in Tennessee
- Down payment help: Great Choice Plus, $6,000 or $10,000 deferred, or up to 5% / $15,000 amortizing
- Limits: $500,000 price cap; household income caps by county
- First-time rule: applies to teachers, waived in THDA’s targeted areas
- How to apply: through a THDA-approved lender, not THDA directly
Which THDA programs can Tennessee teachers use?
The Tennessee Housing Development Agency (THDA) doesn’t have a stand-alone teacher loan. Teachers get a rate discount on THDA’s regular home loan, and can add THDA’s down payment assistance on top:
| THDA program | What it is | Teacher benefit |
|---|---|---|
| Homeownership for Heroes | A Great Choice option for public servants | 0.50% off the Great Choice interest rate |
| Great Choice Home Loan | THDA’s 30-year fixed first mortgage, insured by FHA, VA or USDA | The loan the discount applies to |
| Great Choice Plus | A second mortgage for down payment and closing costs | Same terms as any Great Choice buyer; can be combined with Heroes |
| Homebuyer education | A THDA-approved homebuyer class | Required; same for every buyer |
Sources: THDA, Great Choice Home Loan and Homeownership for Heroes; THDA, Down Payment Assistance, checked October 27, 2026. Program terms and eligibility are subject to THDA and lender guidelines and may change.
What is THDA Homeownership for Heroes?
Homeownership for Heroes gives a 0.50% discount on THDA’s current Great Choice interest rate. It is available only on Great Choice loans insured by FHA, VA or USDA, and comes with the rest of the Great Choice benefits: a 30-year fixed rate, up to 96.5% financing with FHA, and up to 100% with VA or USDA.
THDA added teachers on May 5, 2026, during National Teacher Appreciation Week. The program was already open to veterans and military, firefighters, EMTs and paramedics, law enforcement officers and emergency dispatchers, and THDA says it has helped 5,448 public servants buy homes since it started.
There is no separate approval standard for teachers. Your credit, income, debts and the property are underwritten exactly as for any Great Choice borrower; the benefit is the lower rate. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Which teachers qualify?
- Job: a full-time teaching position, kindergarten through 12th grade, at a Tennessee public or private school. THDA’s program page lists teachers and principals.
- Proof: expect the lender to verify your full-time employment with your school or district. Have a recent pay stub and your school’s contact information ready.
- Credit: 640 minimum for everyone on the loan application.
- Homebuyer education: a THDA-approved class, finished before closing.
- Income and price: within THDA’s limits for the county you’re buying in (below).
- Primary residence: you must live in the home.
- First-time buyer status, unless the home is in a targeted area (below).
Not on THDA’s list: college and university faculty, pre-K-only teachers, substitutes, part-time teachers and non-teaching school staff such as aides, counselors and bus drivers. If your position is borderline, I’ll confirm it with the THDA lender before you apply. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Can teachers combine Homeownership for Heroes with down payment assistance?
Yes. A Heroes loan is a Great Choice loan, so you can add Great Choice Plus, THDA’s down payment assistance second mortgage. You pick one structure:
| Option | Amount | Rate and term | When it is repaid |
|---|---|---|---|
| Deferred | $6,000 or $10,000 | 0% interest, no monthly payment, 10-year term | Forgiven after 10 years; due in full if you sell or refinance sooner |
| Amortizing | Up to 5% of the sales price, maximum $15,000 | 30 years, same interest rate as the first mortgage | Monthly payments |
| Amortizing, new construction | Up to $25,000 | 15 years, 0% interest | Monthly payments |
Source: THDA, Down Payment Assistance, checked October 27, 2026. Program terms and eligibility are subject to THDA and lender guidelines and may change. More detail: down payment assistance in Tennessee.
What are THDA’s income and price limits for teachers?
The same as for every Great Choice buyer. The price limit is $500,000 in every county. Income limits depend on the county and household size, and THDA counts income from every adult in the household, not only the people on the loan:
| County (largest city) | 1–2 persons | 3+ persons |
|---|---|---|
| Davidson (Nashville), Robertson, Sumner, Williamson, Wilson, Rutherford, Cheatham, Dickson | $139,320 | $162,540 |
| Maury (Columbia) | $124,320 | $145,040 |
| Knox (Knoxville) | $103,700 | $119,255 |
| Shelby (Memphis) | $102,794 | $118,214 |
| Montgomery (Clarksville) | $102,574 | $117,961 |
| Hamilton (Chattanooga) | $101,854 | $117,133 |
| Madison (Jackson) | $95,400 | $111,300 |
| Most targeted counties (e.g. Gibson, Lincoln, Hawkins) | $113,880 | $132,860 |
Source: THDA Acquisition Cost & Income Limits by County, effective August 1, 2026. Program terms and eligibility are subject to THDA and lender guidelines and may change.
A two-teacher household in Davidson County would need combined household income at or under $139,320 (two people) or $162,540 (three or more).
Do teachers have to be first-time buyers?
Generally yes. THDA counts you as a first-time buyer if you haven’t lived in a home you owned for at least three years. The rule is waived if you buy in one of THDA’s 43 targeted counties (for example Trousdale, Macon, Houston, Stewart, Tipton or White) or in a designated census tract in 15 other counties, decided by the property address. The automatic waiver for veterans and service members does not extend to teachers. Program terms and eligibility are subject to THDA and lender guidelines and may change.
What could this look like for a teacher buying a $300,000 home in Robertson County?
| Item | Heroes FHA + deferred assistance |
|---|---|
| Purchase price | $300,000 |
| FHA minimum down payment (3.5%) | $10,500 |
| Great Choice Plus (deferred) | $6,000 or $10,000, depending on the THDA product |
| Left for the buyer toward the down payment | $4,500 with $6,000; $500 with $10,000; plus closing costs |
| Interest rate | THDA’s current Great Choice rate, less 0.50% |
| Robertson County THDA limits | Income $139,320 (1–2 persons) / $162,540 (3+); price $500,000, so this home fits |
Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs, prepaid taxes and insurance and FHA mortgage insurance are not shown. Program terms and eligibility are subject to THDA, HUD and lender guidelines and may change.
To try your own numbers, including the property tax for a specific Tennessee address, use the Tennessee mortgage calculator.
How do teachers apply for Homeownership for Heroes?
- Start homebuyer education early. THDA recommends finishing the class at least four weeks before closing; the certificate is good for 12 months.
- Apply through a THDA-approved lender. THDA doesn’t lend directly. As a broker, I place Great Choice and Heroes loans with a THDA-approved wholesale lender, so the first mortgage and Great Choice Plus go on one application.
- Tell us you’re a teacher up front, so the loan is set up as Homeownership for Heroes from the start.
- Compare before you commit. I’ll price the Heroes loan next to FHA, VA, USDA and conventional loans from our other lenders. A discounted THDA rate isn’t automatically the lowest-cost option, so we compare total cost over the time you plan to own the home.
What are the catches?
- The discount is off THDA’s rate, which can be higher or lower than an outside lender’s rate on a given day. Compare the full cost, not only the discount.
- It is for buying a home to live in. Homeownership for Heroes isn’t available for refinancing or investment property.
- Household income counts every adult in the home, including people not on the loan.
- Great Choice Plus is a loan, not a grant: the deferred amount is due if you sell or refinance within 10 years.
- Conventional loans: THDA’s program page lists Heroes on FHA, VA and USDA loans only, so a buyer who wants a conventional loan would use THDA’s HFA Advantage without the Heroes discount.
- THDA files take extra steps (education, the household income check and THDA’s compliance review), so allow more time before closing.
Teacher home loan FAQ
Is there a THDA loan just for teachers?
Not a separate loan. Teachers qualify for Homeownership for Heroes, which takes 0.50% off the rate on a THDA Great Choice loan (FHA, VA or USDA, 30-year fixed). Teachers were added in May 2026. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Who counts as a teacher for Homeownership for Heroes?
THDA lists full-time K–12 teachers and principals employed at a Tennessee public or private school. College faculty, substitutes, part-time teachers and non-teaching staff aren’t on THDA’s list. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Can teachers get down payment assistance with Homeownership for Heroes?
Yes. Great Choice Plus can be added to a Heroes loan: $6,000 or $10,000 deferred and forgiven after 10 years, or up to 5% of the price (maximum $15,000) repaid over 30 years, or up to $25,000 on new construction. Program terms are subject to THDA and lender guidelines and may change.
Do teachers have to be first-time homebuyers?
Yes, unless you buy in a THDA targeted area. THDA treats you as first-time if you haven’t lived in a home you owned for three years, and waives the rule in 43 targeted counties and designated census tracts in 15 more. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Can teachers refinance with Homeownership for Heroes?
No. Homeownership for Heroes is a Great Choice purchase loan for a home you will live in. Teachers who already own can compare a rate-and-term or cash-out refinance through our other lenders instead. Program terms and eligibility are subject to THDA and lender guidelines and may change.
How do teachers apply?
Through a THDA-approved lender. I submit Great Choice and Heroes loans to a THDA-approved wholesale lender, so the first mortgage and any Great Choice Plus assistance go on one application. Start homebuyer education early; THDA recommends finishing it at least four weeks before closing.
Where these figures come from
| Figure | Source | As of |
|---|---|---|
| Teachers added, 0.50% discount, 5,448 buyers helped | THDA news release | May 5, 2026 |
| Eligible jobs, FHA/VA/USDA only, 640 score, financing percentages | THDA, Great Choice Home Loan | Checked Oct 27, 2026 |
| Great Choice Plus amounts, rates and terms | THDA, Down Payment Assistance | Checked Oct 27, 2026 |
| First-time rule and waivers | THDA, Repeat Homebuyers; Targeted Areas | Checked Oct 27, 2026 |
| Income and price limits by county | THDA Acquisition Cost & Income Limits | Effective Aug 1, 2026 |
| Homebuyer education | THDA, Homebuyer Education | Checked Oct 27, 2026 |
Related guides
- Down payment assistance in Tennessee: THDA Great Choice Plus and The Housing Fund.
- Tennessee first-time homebuyer programs, with the full THDA income-limit table.
- First responder loans: Homeownership for Heroes for firefighters, EMTs and law enforcement.
- FHA, VA and USDA loan pages.
- Davidson County and metro buyers can work with me as a mortgage broker in Nashville.
- About Christopher Armantrout, the licensed originator who wrote this page.
Call me at (615) 671-9178. I’ll confirm your position qualifies, check your county’s THDA limits, and compare a Homeownership for Heroes loan with your other options.
If it’s after hours, grab a time on my calendar, or start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.