THDA stands for the Tennessee Housing Development Agency, a branch of the State government that assists in public housing programs. THDA underwrites an FHA loan programs whereby THDA is the lender for FHA first mortgage loans made to qualifies first time homebuyers. The homebuyer’s income is one the determining eligibility criteria. The application is made through a private mortgage lender, such as a savings and loan, is approved by THDA, and the loan is actually funded by THDA. The originating company usually retains the servicing of the loan. The loan is a normal FHA loan made at below market interest rates.. The THDA provides the closing agent with applicable documents to be used at closing.