THDA Great Choice Plus Down Payment Assistance

What Great Choice Plus provides

Great Choice Plus is a second mortgage that provides assistance with down payment and closing costs. It is available only in combination with the Great Choice Home Loan first mortgage. The assistance amount is a percentage of the first mortgage loan amount — verify the current percentage with Morgan Hardy, as THDA adjusts program terms periodically.

The second mortgage is structured as a deferred loan — no monthly payments are required. However, it must be repaid when the home is sold, refinanced, or the first mortgage is paid off. This is an important distinction from a grant: the assistance is not free money, it is a deferred obligation.

How Great Choice Plus works in practice

A buyer using Great Choice + Great Choice Plus receives two loans at closing: the Great Choice first mortgage (the primary home loan) and the Great Choice Plus second mortgage (the assistance). The second mortgage funds are applied to the down payment and/or closing costs, reducing the cash the buyer needs to bring to closing.

Because the second mortgage is deferred, the buyer's monthly payment is based only on the first mortgage. The second mortgage balance accrues but does not require monthly payments. When the home is eventually sold or refinanced, the second mortgage balance is repaid from the proceeds.

Who qualifies for Great Choice Plus

Great Choice Plus eligibility mirrors Great Choice eligibility — buyers must qualify for the Great Choice Home Loan first. Additional considerations include:

• Must be used with the Great Choice Home Loan (not available as standalone assistance)
• Income and purchase price limits apply (same as Great Choice)
• The combined loan-to-value (first + second mortgage) cannot exceed program limits
• Homebuyer education is required

Is Great Choice Plus right for you?

Great Choice Plus is most valuable for buyers who have sufficient income to support a mortgage payment but haven't accumulated a large down payment. The deferred repayment structure means you don't pay for the assistance monthly — you repay it when you sell or refinance. If you plan to stay in the home long-term, the assistance can be very cost-effective. If you plan to sell or refinance soon, the repayment obligation reduces the net benefit. Morgan Hardy can help you model the economics for your specific situation.