Down payment assistance

Down payment assistance in Tennessee

1 program can help buyers in Tennessee with a down payment and closing costs. Most are for first-time buyers with moderate incomes and are used with a participating lender.

Check which programs fit your situationDown payment assistance finder

Great Choice Plus

Open · Forgivable or repayable loan

Deferred option: up to $6,000 or up to $10,000. Amortizing option: up to 5% of the sales price, maximum $15,000 (up to $25,000 for newly built/proposed construction)

A second loan paired with a THDA Great Choice Home Loan. The deferred option is 0% with no payments and is forgiven at the end of 10 years, but is due in full if the home is sold or refinanced before then. The larger 5%/$15,000 option is repaid monthly over 30 years at the same rate as the first mortgage; the new-construction option is repaid monthly over 15 years at 0%.

Who qualifies: First-time homebuyers, military and veterans, or repeat buyers in targeted areas. Household income and purchase price limits by county. Homebuyer education class required for down payment assistance. THDA's page does not say which buyers get $6,000 versus $10,000 on the deferred option; credit score minimums are set in THDA lender guidelines.

Tennessee Housing Development Agency · Agency website → · Checked 2026-09-30

How assistance usually works

Most programs are a second loan with no monthly payment that is forgiven over time or repaid when you sell or refinance, and some are grants. You usually need a program first mortgage from a participating lender, a homebuyer education course and income under the program’s limit. Apply before you make offers, so your pre-approval reflects the help.

More for Tennessee

Tennessee closing costs Tennessee property taxes Where can I afford to buy in Tennessee?Down payment timeline

Programs change often; confirm the details with the agency.