Glossary: THDA, DPA, targeted area and more
The words you will hear when you look into a THDA loan, one plain sentence each.
THDA, DPA, HFA and targeted area: the four words most buyers hear first.
In a picture
Four words most buyers hear first. The full list is below, one sentence each.
Show the same facts as a list
| Word | What happens |
|---|---|
| THDA | The Tennessee Housing Development Agency, the state agency that helps Tennesseans buy a home. |
| DPA (down payment assistance) | Money toward the cash a buyer brings to closing, offered with a THDA loan. |
| HFA | A housing finance agency, a state group like THDA that helps people buy homes. |
| Targeted area | A county or area THDA marks so that buyers who have owned before may still be eligible there. |
The words, one sentence each
- THDA
- The Tennessee Housing Development Agency, the state agency that helps Tennesseans buy a home.
- THDA-approved lender
- A lender that THDA has signed up to offer its loans; only one of these can tell you where you stand.
- Great Choice
- THDA's main home loan for buyers who meet its rules.
- Great Choice Plus
- The version of Great Choice that adds down payment help.
- Homeownership Heroes
- A THDA program for people in certain public-service and community jobs.
- HFA
- A housing finance agency, a state group like THDA that helps people buy homes.
- HFA Advantage
- A Freddie Mac loan option that housing finance agencies can offer; ask a lender how it differs from Great Choice.
- DPA (down payment assistance)
- Money toward the cash a buyer brings to closing, offered with a THDA loan.
- Forgivable
- Help that does not have to be paid back if you keep the home for the full term.
- First mortgage
- The main loan on the home, the one that pays most of the price.
- Second mortgage
- A smaller loan on the same home, behind the first one; some down payment help comes this way.
- First-time buyer (THDA's meaning)
- Someone who has not lived in a home they owned in the last 3 years, even if they owned one before that.
- 3-year test
- The look-back THDA uses to decide whether you count as a first-time buyer.
- Targeted area
- A county or area THDA marks so that buyers who have owned before may still be eligible there.
- Repeat buyer
- A buyer who has owned a home before and may fit through a targeted area or another route.
- Homebuyer course
- A class on buying and owning a home; some THDA help asks you to finish a THDA-approved one first.
- Credit score
- A number that sums up how you have handled credit; THDA publishes a minimum.
- Income limit
- The most a household can earn and still fit a THDA program; it depends on the county and the household.
- Purchase price limit
- The most a home can cost and still fit a THDA program; ask a lender for the current one for your county.
- Pre-approval
- A lender's written look at what you may be able to borrow, after it reviews your file; a quiz is not one.
- Debt-to-income (DTI)
- Your monthly debts compared with your monthly income, one of the things a lender weighs.
- Cash to close
- The money you bring to closing: the down payment plus closing costs, less any help.
- Closing costs
- Fees paid when the loan is finished, such as for the title work and the appraisal.
- Appraisal
- A professional's opinion of what the home is worth, ordered by the lender.
- Closing
- The meeting where you sign the loan papers and the home becomes yours.
What this rests on
Each line below was read at thda.org on the date shown.
- A buyer who has not lived in a home they owned in the last 3 years may be a first-time buyer under THDA's rule. Repeat buyers may also be eligible in a targeted county or area, or as qualified military and spouse. THDA lists 43 counties as targeted, and designated areas in additional counties. As of 10-28-2026.
What this page holds back
Any figure marked "As of" was checked at thda.org on that day. The price limit, the county income limits and other amounts are not printed here until a person has checked them. They change, and they depend on your county and household.
Limits vary by county and change. Ask a THDA-approved lender. THDA's own limits page.
Check where you stand
Myth busters: buying in Tennessee
Four true-or-false cards. Quick, and easy to share. 4 questions, about 2 minutes
- First-time buyer check (3 questions, about 2 minutes)
Last checked 10-28-2026 · Source: THDA's own site (thda.org)