July 8, 2003

NASHVILLE, TN - If you have never owned a home-now is the time! Beginning July 7, the Tennessee Housing Development Agency (THDA) lowered its interest rate to an all-time low! The Great Rate interest is 4.65% and the Great Start program, which offers 4% down payment assistance, is now 6.65%.

“This is a great time for families looking for their first home to take advantage of our new rate,” said THDA’s Executive Director, Janice Myrick. “This is not an adjustable rate. This a30-year fixed mortgage for first-time borrowers.”

THDA mortgage program are generally for the first-time home buyers, or those who have not owned their principle residence within the last three years, or persons who wish to purchase a home in one of Tennessee’s 58 counties that are targeted because of chronic economic distress.

“Local Lenders and real estate professionals should be the first contact for most of our buyers,” said Jerry Sisson, THDA’s Board Vice-Chair. “We encourage families to meet with these professionals to begin looking for a home, or even to make a plan to buy a home in the future. Our Board of Directors has made a commitment that THDA will have a steady flow of mortgage funds available and there has never been a better time to take advantage of THDA’s mortgage programs.”

In addition to our regular programs, the Agency recently implemented a Disaster Relief and Economic Recovery Mortgage program to aid residents of communities impacted by the spring tornadoes and floods. There are three tiers to this program, depending on household income and whether there was direct damage from the storm. Families may qualify for a 30-year fixed rate mortgage with an interest rate of 0%, 3% or 4.5%, including down payment assistance.

Since THDA’s inception in 1973, it has helped over 80,900 families, funding mortgages of over $3 billion. Last year in 2002, THDA provided over $200 million in loans to help over 2,500 Tennessee families purchase their first home. THDA provides these mortgage funds and successfully administers several other programs without state funds.

THDA”s mission is to be the lead state agency promoting sound and affordable housing for people who need help.

THDA also administers several federally funded programs, such as section 8 Programs, low-income housing tax credits, multifamily bond authority and federally funded grants.

For more information regarding THDA’s programs contact the THDA Nashville office at 1-8800-228-8432 hearing impaired number is 615-532-2894. Information on line is www.tennessee.gov/thda.