Tennessee Down Payment Assistance
Tennessee Down Payment Assistance Programs
A guide to current down payment assistance options in Tennessee, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Tennessee homebuyers.
Tennessee Housing Finance Agency
Tennessee Housing Development Agency (THDA)
THDA administers the primary DPA programs for Tennessee. Program details below are current as of April 23, 2026 - confirm current terms directly with THDA before applying.
Statewide DPA Programs in Tennessee
Great Choice Home Loan
THDA
30-year fixed-rate first mortgage available to first-time homebuyers and veterans (and to buyers in targeted areas without the first-time requirement); foundation product for pairing with Great Choice Plus DPA.
Paired with: FHA, VA, USDA, Conventional
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 640
- Income: See THDA county-specific household income limits.
- Homebuyer education required
First-time homebuyer requirement waived in THDA-designated targeted areas and for qualifying veterans.
Source: thda.org
Great Choice Plus - Deferred Option
THDA
$6,000 in the form of a 0% interest forgivable second mortgage with no monthly payments; forgiven at the end of the 30-year term if the home is not sold or refinanced.
Paired with: FHA, VA, USDA, Conventional
- Primary residence only
- Minimum FICO: 640
- Homebuyer education required
Only available in conjunction with a THDA Great Choice first mortgage. Due in full if the home is sold or refinanced before the 30-year term is complete.
Source: thda.org
Great Choice Plus - Amortizing Option
THDA
Up to 5% of the sales price (maximum $15,000) as a 30-year amortizing second mortgage at the same interest rate as the first mortgage.
Paired with: FHA, VA, USDA, Conventional
- Primary residence only
- Minimum FICO: 640
- Homebuyer education required
Only available with a THDA Great Choice first mortgage. Borrowers make monthly payments on both first and second mortgages.
Source: thda.org
Homeownership for the Brave
THDA
Great Choice first mortgage with a 0.5% interest rate reduction for eligible active-duty military, veterans, reservists, National Guard, and surviving spouses. May be combined with Great Choice Plus DPA.
Paired with: FHA, VA, USDA, Conventional
- Primary residence only
- Minimum FICO: 640
- Homebuyer education required
First-time homebuyer requirement is waived for this program.
Source: thda.org
Major City & County Programs in Tennessee
City of Memphis Down Payment Assistance Program
City of Memphis Division of Housing and Community Development · City of Memphis, TN
Up to $25,000 or 10% of the sales price (whichever is less) for down payment and closing costs; structured as a deferred loan with a 5-year affordability period.
Applicants must be first-time homebuyers with no ownership interest in the last three years, income at or below 80% AMI, complete HUD-certified homebuyer counseling, and occupy the home as a primary residence. Separate Targeted Area and Police Officer variants are offered with different criteria.
Source: memphis.hosted.civiclive.com
Tennessee Notes for Homebuyers
- Tennessee uses deeds of trust; non-judicial foreclosure is standard.
2026 Loan Limits in Tennessee
Conforming (Conventional)
$806,500 baseline
Some Tennessee counties qualify as high-cost, with limits up to $1,209,750.
FHA
$524,225 floor
Higher-cost Tennessee counties can reach the FHA ceiling of $1,209,750.
Live DPA Pricing for Tennessee
Pricing below is sourced live from hundreds of wholesale lenders for a Tennessee scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Tennessee with live pricing
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