Down Payment Assistance Programs in Tennessee

Tennessee provides homebuyer assistance through the Tennessee Housing Development Agency (THDA), which offers programs designed to help first-time and moderate-income buyers throughout the state. With no state income tax, Tennessee is already a financially favorable state for homeowners, and the addition of down payment assistance makes it even more accessible.

THDA Great Choice Home Loan The Great Choice program provides 30-year fixed-rate mortgages at competitive interest rates. It is designed for first-time buyers (or those who have not owned a home in the past three years) and buyers purchasing in federally designated target areas.

THDA Great Choice Plus Great Choice Plus pairs the Great Choice loan with down payment assistance equal to 6 percent of the mortgage amount. This assistance is structured as a second mortgage with no monthly payments, due when the home is sold, refinanced, or no longer used as a primary residence. For a $250,000 home, this translates to $15,000 in assistance.

Hardest Hit Fund Program Areas Some Tennessee counties may have additional resources through community development programs. Counties that experienced significant economic hardship have historically received additional federal funding that flows through local housing agencies.

Local Programs in Nashville and Memphis Nashville and Davidson County have local first-time buyer assistance programs that can supplement state programs. Memphis and Shelby County also have locally funded assistance. Benefit amounts and eligibility vary.

Homebuyer Education Requirement THDA requires completion of a homebuyer education course from a HUD-approved counseling agency before closing.

Homexa® in Tennessee Homexa® agents in Tennessee understand the THDA programs and local assistance options across Nashville, Memphis, Knoxville, and other markets. Connect with a Homexa® agent to find out what you qualify for.