Down payment assistance, grants, forgivable loans, and tax credits available to Tennessee buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed July 2026·2 programs·6 federal programs
Administered by Tennessee Housing Development Agency
Competitive rate + DPA ($6,000-$10,000 forgivable, or up to $15,000 amortizing)
Below-market mortgage with two Great Choice Plus DPA options: a $6,000 or $10,000 second at 0% with no payments, forgiven at the end of a 10-year term (due in full if you sell or refinance sooner); or an amortizing second of up to 5% of the sales price (max $15,000) repaid over 30 years at the first-mortgage rate.
Income limit
Income limits apply by county
Minimum credit score640
First-time buyer requiredYes
Special requirements: Must complete homebuyer education. First-time buyers only (waived in targeted areas and for Heroes participants).
Administered by Tennessee Housing Development Agency
0.50% off the Great Choice mortgage rate
Half-point interest rate discount on the Great Choice Home Loan, plus a waiver of the first-time buyer requirement. Can be combined with Great Choice Plus down payment assistance.
Special requirements: Must be a veteran/active military, firefighter, EMT/paramedic, state or local law enforcement officer, or K-12 teacher (teachers added May 2026).
Low down payment mortgage with reduced mortgage insurance. Allows income from non-borrower household members. A $2,500 credit for very-low-income borrowers (50% AMI or less) is available through early 2027 when at least one borrower is a first-time buyer.
Do I have to be a first-time homebuyer to qualify?
Most Tennessee programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Tennessee programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
