Down Payment Path

Down Payment Assistance Programs in Tennessee

Tennessee offers a range of down payment assistance programs to help homebuyers manage upfront costs. These initiatives are available to both first-time and repeat buyers, making homeownership more accessible across the Volunteer State.

Great Choice Plus Program

The Great Choice Plus Program, offered by the Tennessee Housing Development Agency (THDA), provides financial assistance to help cover down payments and closing costs.

  • Offers up to 6% of the loan amount as assistance.
  • Provided as a second mortgage with no interest and deferred payments.
  • Pairs with THDA's Great Choice Mortgage program, which offers low fixed interest rates on 30-year loans.
  • Open to buyers meeting income and purchase price limits.

Homeownership for the Brave

The Homeownership for the Brave program provides enhanced benefits for military personnel and veterans.

  • Offers reduced interest rates on mortgages for eligible service members.
  • Can be paired with down payment assistance through Great Choice Plus.
  • Eligibility includes active-duty service members, veterans, and certain members of the National Guard.

USDA Rural Development Loans

For buyers in rural Tennessee, the USDA Rural Development Loan provides affordable financing with no down payment required.

  • Available to low- and moderate-income buyers in USDA-designated rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be combined with THDA programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides tax benefits for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be paired with THDA loans and down payment assistance programs.
  • Income and purchase price limits apply but are designed to include a wide range of buyers.

Local Assistance Programs

Many cities and counties in Tennessee provide additional resources for homebuyers through grants or low-interest loans for down payments and closing costs.

  • Programs in areas like Nashville, Memphis, and Chattanooga often include incentives for buyers in revitalization zones or those working in public service roles.
  • Eligibility requirements and assistance amounts vary by location and program specifics.
  • Local initiatives can often be combined with statewide programs for greater financial support.

Tennessee’s down payment assistance programs are designed to reduce financial barriers and make homeownership more attainable for a broad range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your goal of owning a home in the Volunteer State.