Tennessee First-Time Home Buyer Programs and Assistance
Tennessee Housing Development Agency (THDA) currently lists 4 programs for Tennessee buyers, with down payment help up to $15,000 through Great Choice Plus - Amortizing Option. Figures below were read from the agency's own pages on September 11, 2026.
Tennessee first-time buyer programs open now
Tennessee Housing Development Agency (THDA) is the state's housing finance agency (homebuyer programs page). It runs 3 down payment or closing-cost assistance programs alongside 1 below-market first mortgage. THDA's Great Choice Home Loan program is designed for first-time homebuyers, but repeat buyers may qualify if purchasing in one of 43 targeted counties or designated areas within 15 additional counties, or if they are qualified military/veterans (per thda.org/homebuyers/first-time-homebuyers/)
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| Great Choice Home Loan source | First mortgage | See program page | No | 640 | Varies by county; see THDA's Acquisition Income Limits chart |
| Great Choice Plus - Deferred Option source | Forgivable second loan | Up to $6,000 or up to $10,000 | No | 640 | Same as paired Great Choice Home Loan; varies by county |
| Great Choice Plus - Amortizing Option source | Second mortgage | Up to 5% of the sales price, maximum $15,000 | No | 640 | Same as paired Great Choice Home Loan; varies by county |
| Homeownership for Heroes source | Program | See program page | No | 640 | Same as Great Choice Home Loan; varies by county |
- Great Choice Home Loan. Terms: 30-year fixed-rate first mortgage; FHA, USDA-RD, VA, or Freddie Mac HFA Advantage financing Purchase price limit: Varies by county; see THDA's Acquisition Income Limits chart Homebuyer education: required Program page
- Great Choice Plus - Deferred Option. Terms: 0% interest, no payments; forgiven at the end of a 10-year term; due in full if the home is sold or refinanced before then Purchase price limit: Same as paired Great Choice Home Loan; varies by county Must pair with: Great Choice Home Loan Homebuyer education: required Program page
- Great Choice Plus - Amortizing Option. Terms: 30-year amortizing term; interest rate matches the first mortgage Purchase price limit: Same as paired Great Choice Home Loan; varies by county Must pair with: Great Choice Home Loan Homebuyer education: required Program page
- Homeownership for Heroes. Terms: Reduced interest rate on Great Choice Home Loan; can borrow up to 100% of purchase price with VA or USDA-RD loan, or 96.5% with FHA; waives first-time-homebuyer requirement statewide for qualified military/veterans Purchase price limit: Same as Great Choice Home Loan; varies by county Must pair with: Great Choice Home Loan (FHA, USDA, or VA only) Homebuyer education: required Program page
City and county programs in Tennessee
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- The Housing Fund (Nashville/Davidson County area nonprofit CDFI, partnered with the Metropolitan Housing Trust Fund Commission): The Housing Fund Down Payment Assistance. Up to $35,000 for down payment, prepaids, and closing costs. Second mortgage. Income limit: Up to 120% of Area Median Income (HUD AMI by TN county). Official page
- City of Memphis: Citywide Down Payment Assistance (CWDPA). Program. Income limit: Maximum 80% Area Median Income. First-time buyers only. Official page
- City of Knoxville: Downpayment Assistance Program. Program. First-time buyers only. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Tennessee's median-priced home (about $392,100), 3% down is roughly $11,763. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Tennessee programs often add income and purchase-price limits, which is another reason to confirm the details with Tennessee Housing Development Agency (THDA).
Other ways to save in Tennessee
Buyer commission rebates are not available to most buyers in Tennessee, so beyond Tennessee Housing Development Agency (THDA) assistance, your best levers are comparing lenders on rate and fees, shopping title and settlement services, and asking the seller for a closing-cost concession. See our Tennessee closing-costs guide for the full picture.
Frequently asked questions
What first-time home buyer programs are available in Tennessee?
Tennessee Housing Development Agency (THDA) lists 4 programs: Great Choice Home Loan, Great Choice Plus - Deferred Option, Great Choice Plus - Amortizing Option, Homeownership for Heroes. Down payment help runs up to $15,000. The Housing Fund (Nashville/Davidson County area nonprofit CDFI, partnered with the Metropolitan Housing Trust Fund Commission), City of Memphis, City of Knoxville also run local down payment programs.
How much down payment assistance can you get in Tennessee?
Up to $15,000 through Great Choice Plus - Amortizing Option (second mortgage). Other Tennessee programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Tennessee?
Not for every program. 4 of 4 Tennessee programs are open to repeat buyers. THDA's Great Choice Home Loan program is designed for first-time homebuyers, but repeat buyers may qualify if purchasing in one of 43 targeted counties or designated areas within 15 additional counties, or if they are qualified military/veterans (per thda.org/homebuyers/first-time-homebuyers/)
How much down payment do you need in Tennessee?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Tennessee's median-priced home (about $392,100), 3% is roughly $11,763. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Tennessee programs also have income and purchase-price limits, so check with Tennessee Housing Development Agency (THDA).
Can I combine assistance with a buyer rebate in Tennessee?
Tennessee does not permit buyer commission rebates, so first-time buyers here should focus on Tennessee Housing Development Agency (THDA) assistance programs and negotiating the buyer's-agent commission instead.
Official sources
- Tennessee Housing Development Agency (THDA)
- Down Payment Assistance - Tennessee Housing Development Agency
- Homebuyers - THDA
- Down Payment Assistance - The Housing Fund
- Down Payment Assistance Program - City of Memphis
- Downpayment Assistance Program - City of Knoxville
- Consumer Financial Protection Bureau: down payment options and how to prepare
Tennessee program details last verified against Tennessee Housing Development Agency (THDA) on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Tennessee Housing Development Agency (THDA) and your lender before you rely on them.
See first-time buyer programs in all states