Tennessee first-time home buyer programs
Tennessee Housing Development Agency (THDA) lists 3 programs that help buyers in Tennessee with the down payment or closing costs. Amounts and terms are shown as the agency publishes them.
- Programs from the agency
- 3
- Biggest amount listed
- $25,000
- First-time buyers only
- Every program
- Income caps
- Set per program
Down payment assistance programs in Tennessee
| Program | Amount | Grant or loan | Income limit | First-time buyers only |
|---|---|---|---|---|
| Great Choice Plus (Deferred Option). With a THDA Great Choice Home Loan; credit score 640+; homebuyer course; price limit varies by county. | Up to $10,000 | Forgivable loan: 0% loan forgiven after 10 years. You repay all of it if you sell or refinance sooner. | Household income limits vary by county. | Yes, with exceptions |
| Great Choice Plus (Amortizing Option). With a THDA Great Choice Home Loan; credit score 640+; homebuyer course; price limit varies by county. | Up to 5% of the price, at most $15,000 | Repayable loan: Repaid monthly over 30 years at the same interest rate as your main home loan. | Household income limits vary by county. | Yes, with exceptions |
| Great Choice Plus (Amortizing Option - Newly Built/Proposed Construction). With a THDA Great Choice Home Loan; credit score 640+; homebuyer course; price limit varies by county. | Up to $25,000 | Repayable loan: 0% interest loan repaid in monthly payments over 15 years. | Household income limits vary by county. | Yes, with exceptions |
Usually, "first-time buyers only" means you haven't owned a home during the past three years, though every program sets a rule of its own. The name of each program links to a Tennessee Housing Development Agency (THDA) page that says whether applications are open right now. The agency also maintains its own list of participating lenders. Compare down payment assistance programs across all states, or ask a lender that works with Tennessee's programs.
How do you repay Tennessee's programs?
- Forgivable loan: keep the home and its first mortgage for the set years, and this second loan is written off.
- Repayable loan: a small second mortgage you pay back monthly, usually along with your first mortgage payment.
How does your income compare with Tennessee's caps?
Every program has its own income cap, which the table shows, and the exact chart is on that program's agency page. Use the HUD income limits lookup (FY2026) to find the figure for your county and household size. If a program relies on its own county chart or Freddie Mac's, the result can differ from HUD's number, and the agency's chart decides.
| HUD area | Median family income | HUD low-income limit |
|---|---|---|
| Nashville-Davidson--Murfreesboro--Franklin | $116,100 | $92,900 |
| Knoxville | $103,700 | $82,950 |
| Chattanooga | $97,400 | $77,900 |
| Memphis | $92,700 | $74,150 |
| Johnson City | $76,800 | $64,500 |
HUD uses about 80% of the median as a starting point. Its own caps can hold that number down, including a yearly cap on increases, so the low-income limit is under 80% in a few areas.
Talk to a lender that works with Tennessee programs
These programs are paid out through the agency's approved lenders, so the lender is your next step. Tell us where you're buying and a lender that works with Tennessee's programs can explain which ones fit you.
Rather not call? Send your details and the lender will reach you.
Are you buying near a state border?
Alabama, Arkansas, Georgia, Kentucky, Missouri, Mississippi, North Carolina, Virginia or programs for all 50 states plus DC.