Tennessee Down Payment Assistance Programs

Tennessee has 34 down payment assistance programs, offering up to $50,000, including 2 grants that never need repayment. Most buyers combine a statewide program with a local city or county program to cover down payment and closing costs.

34
Total Programs
$50,000
Max Assistance
600
Min Credit Score
2
Grant Programs
Check My Eligibility →

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Last updated: April 2026 | By Down Payment Scout team

Tennessee offers 34 down payment assistance programs to help homebuyers cover their down payment and closing costs. This includes 2 grant programs that never require repayment. Programs range from statewide options administered by the state housing finance agency to local city and county programs targeting specific communities.

Maximum assistance available reaches $50,000 through the most generous program. Credit score requirements start as low as 600 for some programs. Most programs require the home to be your primary residence, and many require homebuyer education.

Top Down Payment Assistance Programs in Tennessee

Highlighted programs that combine high assistance amounts with statewide or major-metro availability. See the full list below.

City of Chattanooga First-Time Homebuyer Grant and Loan Program

verify

City of Chattanooga Housing and Community Investment Division / Chattanooga Neighborhood Enterprise (CNE)

0% interest (down payment (max UP TO $10,000 grant (closing costs) + UP TO $40,000 at 0% interest (down payment) = UP TO $50,000 combined for households at 80-100% AMI)

grant📍 Chattanooga

The Housing Fund

verify

The Housing Fund

UP TO $35,000 (more for Shared Equity programs)

second mortgage📍 Nashville-based, serves statewide

Down Payment Assistance

open

The Housing Fund

10 (max $35,000)

deferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbel...

City of Memphis DPA

verify

City of Memphis Division of Housing and Community Development

10% of purchase price (max (max UP TO 10% of purchase price (max $25,000))

forgivable loan📍 Memphis

City of Clarksville First-Time Homebuyers

verify

City of Clarksville Community Development

UP TO $25,000

forgivable loan📍 Clarksville

Grant Programs (2)

Grants are the gold standard of down payment assistance. You receive the money and never have to pay it back.

City of Chattanooga First-Time Homebuyer Grant and Loan Program

City of Chattanooga Housing and Community Investment Division / Chattanooga Neighborhood Enterprise (CNE)

verify
0% interest (down payment (max UP TO $10,000 grant (closing costs) + UP TO $40,000 at 0% interest (down payment) = UP TO $50,000 combined for households at 80-100% AMI)down payment assistance
citygrant📍 Chattanooga
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
100% AMI
Min Credit Score
Not specified
Property Types
Not specified
Max Price
$300,000

Quick Facts

Loan Types
Not specified
Assistance Type
grant
Profession
all
Homebuyer Ed.
Yes

Income Limits

At or below 100% AMI

Check AMI limits for your county →

Interest Rate

0%

Repayment Terms

Grant portion (up to $10,000): no repayment. Loan portion (up to $40,000): 0% interest, due in full at resale or cash-out refinance.

Additional Requirements

Borrower must use home as primary residence for duration of loan period. Loan is due in full on resale or cash-out refinance. Applications accepted on rolling basis, first-come first-served until funds depleted.

Notes

First-time homebuyer required

Down Payment Assistance

Confederated Tribes of Grand Ronde - Housing

open
20 (max $20,000)down payment assistance
agencygrant📍 Baker, Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Cu...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
grant
Profession
All
Homebuyer Ed.
Yes

Shared Appreciation Loans (1)

Shared appreciation loans provide large assistance amounts. You repay the original amount plus a share of your home's appreciation when you sell.

The Housing Fund Shared Equity Program (Our House)

The Housing Fund (nonprofit CDFI)

verify
25% of purchase pricedown payment assistance
stateshared appreciation📍 Statewide (focused on Nashville/Davidson County; expanded to...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
120% AMI
Min Credit Score
620+
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Conventional
Assistance Type
shared appreciation
Profession
all
Homebuyer Ed.
Yes

Income Limits

Up to 120% AMI (tiered: 80%, 100%, 120% AMI tiers)

Check AMI limits for your county →

Interest Rate

0%

Repayment Terms

No-cost, due-on-sale loan. No monthly payments. Full repayment (of THF's shared equity portion) triggered on sale or transfer. Designed to preserve long-term affordability.

Additional Requirements

The Housing Fund acquires properties statewide for Shared Equity homeownership. Program has expanded beyond Nashville to Chattanooga, Knoxville, and Memphis. THF is a nonprofit CDFI. Contact Senior Mortgage Advisor Candice Winburn for details.

Notes

Homebuyer education from a THDA-certified counselor required; check program for first-time buyer requirements

Forgivable Loans (4)

Forgivable loans are forgiven after a set period of living in the home. If you stay, you keep the money.

City of Memphis DPA

City of Memphis Division of Housing and Community Development

verify
10% of purchase price (max (max UP TO 10% of purchase price (max $25,000))down payment assistance
cityforgivable loan📍 Memphis
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
80% AMI
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
forgivable loan
Profession
all
Homebuyer Ed.
Not specified

Repayment Terms

Amounts over $15,000 forgiven after 10 years of owner-occupancy

Notes

First-time homebuyers required. Occupancy requirement: Primary residence

City of Clarksville First-Time Homebuyers

City of Clarksville Community Development

verify
UP TO $25,000down payment assistance
cityforgivable loan📍 Clarksville
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
50-80% AMI
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
forgivable loan
Profession
all
Homebuyer Ed.
Yes

Income Limits

50 - 80% AMI

Check AMI limits for your county →

Repayment Terms

Down payment portion forgiven after 5 years 1 month; closing cost portion forgiven after 10 years

Additional Requirements

Funded through HOME funds

Notes

First-time homebuyers required. Occupancy requirement: Primary residence

City of Memphis Homebuyer Incentive Program for MSCS Employees

City of Memphis Division of Housing and Community Development (HCD)

verify
10% of purchase price (max UP TO 10% of purchase price, not to exceed $25,000)down payment assistance
cityforgivable loan📍 Memphis
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
No income limit
Min Credit Score
Not specified
Property Types
single-family
Max Price
$300,000

Quick Facts

Loan Types
Not specified
Assistance Type
forgivable loan
Profession
all
Homebuyer Ed.
No

Income Limits

No income limit

Check AMI limits for your county →

Repayment Terms

Forgivable over a period of affordability contingent on continued MSCS employment and occupancy. Amount over $15,000 forgiven after 10 years of owner-occupancy per parent DPA program structure.

Additional Requirements

Must remain employed and in good standing with MSCS during period of affordability. No other property ownership allowed at time of purchase.

Notes

Not required to be first-time homebuyer, but may not own any other property at time of purchase

THDA County First Initiative

Tennessee Housing Development Agency (THDA)

verify
$15,000 regardless of purchase pricedown payment assistance
stateforgivable loan📍 Statewide (targeted underserved counties)
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Varies by county and household size
Min Credit Score
640+
Property Types
Not specified
Max Price
$400,000

Quick Facts

Loan Types
FHA, USDA, Conventional
Assistance Type
forgivable loan
Profession
all
Homebuyer Ed.
Yes

Income Limits

Varies by county and household size

Check AMI limits for your county →

Interest Rate

0%

Repayment Terms

10-year forgivable loan at 0% interest with no monthly payments. Forgiven in full after 10 years of owner-occupancy. Due in full on sale, refinance, or if property ceases to be primary residence before 10 years.

Additional Requirements

Must pair with a THDA Great Choice Home Loan. Existing home purchases only; new construction not eligible. Special lower fixed interest rate offered. Homebuyer education required.

Notes

First-time homebuyer required; repeat buyers may qualify in targeted areas. Waived for qualifying military/veterans.

Deferred Payment Loans (22)

Deferred loans require no monthly payments while you live in the home. You repay when you sell, refinance, or move out.

Down Payment Assistance

The Housing Fund

open
10 (max $35,000)down payment assistance
agencydeferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbel...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

5% Fixed Simple Interest

Repayment Terms

Fully Amortizing

First-Time Homebuyer Program

Clarksville - Neighborhood and Community Services

verify
$25,000down payment assistance
agencydeferred loan📍 Montgomery
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, 2 units, 3 units, 4 units, Condominium, Townhouse/PUD
Max Price
$282,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Repayment Terms

Fully Amortizing

Citywide DPA (CWDPA)

Memphis - Div. of Housing and Community Develop.

open
10 (max $25,000)down payment assistance
agencydeferred loan📍 Shelby
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
$300,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Interest Rate

None

Repayment Terms

Deferred Payment - Repayable at sale or refinance

Memphis Housing Authority (MHA)

Memphis - Div. of Housing and Community Develop.

open
10 (max $25,000)down payment assistance
agencydeferred loan📍 Shelby
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
$300,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Interest Rate

None

Repayment Terms

Deferred Payment - Repayable at sale or refinance

Section 8 Homeownership Program (SHAPE)

Memphis - Div. of Housing and Community Develop.

open
10 (max $25,000)down payment assistance
agencydeferred loan📍 Shelby
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
$300,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Interest Rate

None

Repayment Terms

Deferred Payment - Repayable at sale or refinance

Targeted Area DPA (TADPA)

Memphis - Div. of Housing and Community Develop.

open
10 (max $25,000)down payment assistance
agencydeferred loan📍 Shelby
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
$300,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Interest Rate

None

Repayment Terms

Deferred Payment - Repayable at sale or refinance

Northeast Tennessee/Virginia HOME Consortium DPA Program

Northeast Tennessee/Virginia HOME Consortium; administered by First Tennessee Development District (FTDD)

verify
$1,000 to $15,000 based on applicant need (subsidy analysis required)down payment assistance
statedeferred loan📍 Northeast Tennessee (Bristol, Kingsport, Johnson City, Bluff...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Low-moderate income
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
deferred loan
Profession
all
Homebuyer Ed.
Not specified

Income Limits

Low-to-moderate income; HUD income guidelines apply

Check AMI limits for your county →

Repayment Terms

Deferred payment loan, due-on-sale. No monthly payments required. Full repayment triggered on sale or transfer of property.

Additional Requirements

Subsidy analysis prepared to determine exact assistance amount. Applicants encouraged to contact FTDD before submitting application. Federal HOME program rules apply. Subject to 2025 HUD funding uncertainty.

Notes

First-time homebuyers required per HOME program requirements

CNE Down Payment Assistance

Chattanooga Neighborhood Enterprise

open
$15,000down payment assistance
agencydeferred loan📍 Bledsoe, Bradley, Grundy, Hamilton, Marion, McMinn, Meigs, P...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Repayment Terms

Fully Amortizing

Freddie Mac HFA Advantage - Amortizing

Tennessee Housing Development Agency

open
5 (max $15,000)down payment assistance
agencydeferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbel...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Townhouse/PUD, Condominium
Max Price
$400,000

Quick Facts

Loan Types
Freddie Mac
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Not specified

Interest Rate

same as the first mortgage rate

Repayment Terms

Fully Amortizing

Great Choice Plus - Amortizing

Tennessee Housing Development Agency

open
5 (max $15,000)down payment assistance
agencydeferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbel...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Townhouse/PUD, Condominium
Max Price
$400,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Not specified

Interest Rate

Interest rate is the same as the first mortgage.

Repayment Terms

Fully Amortizing

Affordable Homeownership Program

Northeast Tennessee/Virginia HOME Consortium

open
$10,000down payment assistance
agencydeferred loan📍 Sullivan, Washington
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD, Manufactured
Max Price
$261,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

None

Repayment Terms

Deferred Payment - Repayable at sale or refinance

Down Payment Assistance Program

Shelby County Department of Housing

open
$6,000down payment assistance
agencydeferred loan📍 Shelby
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
$400,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

3% Fixed Simple Interest Rate

Repayment Terms

Fully Amortizing

Freddie Mac HFA Advantage - Deferred

Tennessee Housing Development Agency

open
$6,000down payment assistance
agencydeferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbel...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Townhouse/PUD, Condominium
Max Price
$400,000

Quick Facts

Loan Types
Freddie Mac
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Not specified

Interest Rate

0%

Repayment Terms

Deferred Payment - Repayment at sale or refinance

Great Choice Plus - Deferred

Tennessee Housing Development Agency

open
$6,000down payment assistance
agencydeferred loan📍 Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Callowa...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Townhouse/PUD, Condominium
Max Price
$400,000

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

0%

Repayment Terms

Forgivable - Fully forgiven at closing or forgiven on a schedule

City of Knoxville DPA

City of Knoxville Community Development

open
Varies by projectdown payment assistance
citydeferred loan📍 Knoxville
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Not specified
Income Limit
Low-moderate income
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
deferred loan
Profession
all
Homebuyer Ed.
Not specified

Income Limits

Low-to-moderate income

Check AMI limits for your county →

Repayment Terms

Varies by project

Additional Requirements

Program currently closed to general applicants. Only homes from approved developers eligible

Notes

Check program requirements; currently limited availability. Occupancy requirement: Primary residence

The Housing Fund Community Land Trust (CLT) Program

The Housing Fund (nonprofit CDFI)

verify
Varies; land value subsidy reduces purchase price significantly for qualifying buyersdown payment assistance
nonprofitdeferred loan📍 Nashville-Davidson County
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
80% AMI
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
deferred loan
Profession
all
Homebuyer Ed.
Yes

Income Limits

At or below 80% AMI (Nashville-Davidson MSA)

Check AMI limits for your county →

Repayment Terms

N/A for CLT subsidy - land lease structure. Buyers pay a nominal annual ground lease fee. On resale, home must be sold at an affordable price per CLT formula.

Additional Requirements

CLT model creates permanent affordability by keeping land in trust. Created in 2017. Homes on CLT land must be sold per CLT resale restrictions to preserve affordability for future buyers.

Notes

Program serves households at or below 80% AMI in the Nashville area; check requirements with THF directly

AHR Tennessee Downpayment Partnership

Affordable Housing Resources (AHR) / Wells Fargo / NeighborWorks America

open
Amount not specified
citydeferred loan📍 40 Middle Tennessee counties
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
80% AMI
Min Credit Score
Not specified
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
deferred loan
Profession
all
Homebuyer Ed.
Yes

Income Limits

At or below 80% AMI (HUD income guidelines)

Check AMI limits for your county →

Repayment Terms

Deferred loan due on sale; no monthly payments required. Repaid funds are reinvested to assist the next first-time homebuyer.

Additional Requirements

Program is administered by AHR in partnership with Wells Fargo NeighborhoodLIFT and NeighborWorks America. Funding availability may be limited. Confirm current availability before proceeding.

Notes

Available to both first-time and repeat buyers in Nashville-Davidson County

City Down Payment Assistance

Chattanooga Neighborhood Enterprise

open
Amount not specified
agencydeferred loan📍 Hamilton
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
No

Downpayment Assistance Program

City of Knoxville

open
Amount not specified
agencydeferred loan📍 Knox
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Condominium, Townhouse/PUD
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Affordable Housing Assistance

City of Murfreesboro

open
Amount not specified
agencydeferred loan📍 Rutherford
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Yes
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, Townhouse/PUD, Condominium
Max Price
Not specified

Quick Facts

Loan Types
Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Repayment Terms

Deferred Payment - Repayment at sale or refinance

Chenoa Fund FHA Down Payment Assistance Forgivable

CBC Mortgage Agency (Chenoa Fund)

verify
5down payment assistance
agencydeferred loan📍 US
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
Max Price
$766,550

Quick Facts

Loan Types
FHA
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

0

Repayment Terms

0

Chenoa Fund FHA Down Payment Assistance Repayable

CBC Mortgage Agency (Chenoa Fund)

verify
5down payment assistance
agencydeferred loan📍 US
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Not specified
Min Credit Score
Not specified
Property Types
Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
Max Price
$766,550

Quick Facts

Loan Types
FHA
Assistance Type
deferred loan
Profession
All
Homebuyer Ed.
Yes

Interest Rate

Note rate 1% above the first mortgage note rate

Repayment Terms

This loan does require a monthly payment on the second mortgage.

Second Mortgages (5)

These programs provide DPA as a second mortgage, sometimes with monthly payments, sometimes deferred.

The Housing Fund

The Housing Fund

verify
UP TO $35,000 (more for Shared Equity programs)down payment assistance
statesecond mortgage📍 Nashville-based, serves statewide
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
120% AMI
Min Credit Score
600+
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
second mortgage
Profession
all
Homebuyer Ed.
Yes

Income Limits

Up to 120% AMI (varies by county and product)

Check AMI limits for your county →

Interest Rate

5% fixed rate

Repayment Terms

Amortizing second mortgage at 5% fixed rate; must be fully repaid; lender must be FHA-approved in Tennessee; borrower must contribute at least 1% of sales price

Notes

Check program requirements. Occupancy requirement: Primary residence

Chattanooga Neighborhood Enterprise (CNE) DPA Program

Chattanooga Neighborhood Enterprise, Inc. (CNE) / Chattanooga Neighborhood Lending

verify
UP TO $25,000down payment assistance
nonprofitsecond mortgage📍 Bledsoe, Bradley, Grundy, Hamilton, Marion, McMinn, Meigs, P...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Not specified
Income Limit
Varies by household size; income-based e...
Min Credit Score
640+
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
Not specified
Assistance Type
second mortgage
Profession
all
Homebuyer Ed.
Yes

Income Limits

Varies by household size; income-based eligibility

Check AMI limits for your county →

Interest Rate

Same as first mortgage rate

Repayment Terms

$15,000 option: second mortgage loan, monthly payments begin after closing, amortizes over loan term at rate of first mortgage but no less than 3%. $25,000 option: 15-year second loan at same rate as first mortgage.

Additional Requirements

Homebuyer education course required. CNE also offers ITIN mortgage products for non-SSN buyers.

Notes

Open to both first-time and repeat homebuyers. Homebuyer education course required.

THDA Great Choice Plus DPA

Tennessee Housing Development Agency (THDA)

verify
5% of purchase price (max Deferred: UP TO $6,000; Amortizing: UP TO $15,000 (5% of purchase price))down payment assistance
statesecond mortgage📍 Statewide
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Varies by county
Min Credit Score
640+
Property Types
Not specified
Max Price
Not specified

Quick Facts

Loan Types
FHA, USDA, Conventional
Assistance Type
second mortgage
Profession
all
Homebuyer Ed.
Yes

Income Limits

Varies by county

Check AMI limits for your county →

Interest Rate

0%

Repayment Terms

Deferred option: 0% interest, no monthly payments, forgiven at end of 30-year term or due on sale/refinance. Amortizing option: 30-year repayment at same rate as first mortgage.

Additional Requirements

Must be paired with a THDA Great Choice first mortgage. Homebuyer education required (max $99 cost)

Notes

First-time homebuyers required; repeat buyers eligible in targeted areas. Occupancy requirement: Primary residence

THDA Homeownership for Heroes

Tennessee Housing Development Agency (THDA)

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5% of purchase price (amortizing (max UP TO $6,000 (deferred/forgivable) or UP TO $15,000 / 5% of purchase price (amortizing); plus 0.5% interest rate reduction on first mortgage)down payment assistance
statesecond mortgage📍 Statewide
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
No
Income Limit
Varies by county and household size
Min Credit Score
640+
Property Types
Not specified
Max Price
$400,000

Quick Facts

Loan Types
FHA, VA, USDA
Assistance Type
second mortgage
Profession
veterans, first responders, law enforcement
Homebuyer Ed.
Yes

Income Limits

Varies by county and household size

Check AMI limits for your county →

Interest Rate

0%

Repayment Terms

Deferred option: $6,000 at 0% interest, no payments, forgiven at end of 30-year term; due in full on sale or refinance before term. Amortizing option: up to $15,000 at same rate as first mortgage, 30-year repayment.

Additional Requirements

Must pair with a THDA Great Choice Home Loan. Homebuyer education course required (max $99). Primary residence only, must occupy within 60 days. Subject to federal recapture provisions if sold within first 9 years.

Notes

First-time buyer requirement WAIVED for active duty, National Guard, retired military, and veterans in all Tennessee counties. Firefighters, EMTs, paramedics, and law enforcement must be first-time buyers.

Shelby County Department of Housing DPA Program

Shelby County Department of Housing (SCDH)

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UP TO $6,000down payment assistance
countysecond mortgage📍 Shelby County (unincorporated areas outside Memphis city lim...
See eligibility details ↓

Eligibility Snapshot

First-Time Buyer
Not specified
Income Limit
2 or fewer: $26,100 - $85,990; 3 or more: ...
Min Credit Score
Not specified
Property Types
Not specified
Max Price
$300,000

Quick Facts

Loan Types
FHA, VA, USDA, Conventional
Assistance Type
second mortgage
Profession
all
Homebuyer Ed.
Yes

Income Limits

2 or fewer: $26,100 - $85,990; 3 or more: $26,100 - $98,888

Check AMI limits for your county →

Interest Rate

3% fixed rate

Repayment Terms

3% fixed rate second mortgage, repayment up to 15 years (180 months). Effective February 15, 2023. Total debt ratio must not exceed 45%. Minimum $500 personal investment required.

Additional Requirements

Lender submits DPA application on behalf of buyer after home is under contract. Applications processed first-come, first-served. Funds subject to availability.

Notes

Good credit history and stable employment required; first-time buyer status not explicitly stated as required

How to Apply for Down Payment Assistance in Tennessee

  1. 1

    Check Your Eligibility

    Use our free eligibility tool to see which programs match your situation. Enter your state, city, income, and target home price.

  2. 2

    Contact the Program Administrator

    Each program has its own application process. Visit the program website or call the administering agency to get started. Many programs work through approved lenders.

  3. 3

    Get Pre-Approved with a Participating Lender

    Not every lender participates in every DPA program. Work with a lender who is approved for the programs you want. The program administrator can provide a list of approved lenders.

  4. 4

    Complete Homebuyer Education (If Required)

    Many programs require a HUD-approved homebuyer education course. Online options through eHome America and Framework are accepted by most programs.

  5. 5

    Close & Move In

    DPA funds are typically disbursed at closing alongside your first mortgage. Your lender coordinates the DPA program paperwork as part of the loan process.

Frequently Asked Questions

How much down payment assistance can I get in Tennessee?

Up to $50,000 through available programs in Tennessee. Multiple programs can often be combined for even more assistance. The exact amount depends on your income, location, and the specific program requirements.

Do I need to be a first-time homebuyer?

Not always. 13 programs in Tennessee are open to repeat buyers. "First-time buyer" is typically defined as not having owned a home in the past three years.

What credit score do I need?

As low as 600 for some programs. Most programs require 620-660. Higher credit scores may qualify you for more programs and better terms.

Can I combine multiple DPA programs?

In many cases, yes. Some programs are specifically designed to be layered with others. For example, you might combine a state grant with a local deferred loan. Check with each program administrator about stacking eligibility.

Help Us Keep This Data Accurate

Know about a DPA program in Tennessee that's changed, closed, or one we're missing? This directory is community-maintained. Your input helps thousands of homebuyers find the right programs.

Submit a Program Update →

Get Your Free Tennessee DPA Action Plan

Tell us about your situation and we will put together a personalized guide to the programs you may qualify for.

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