Tennessee homebuyers can access up to $7,500 in down payment assistance through the Tennessee Housing Development Agency (THDA). On the state's $313,544 median home price, that covers roughly 12% of a standard 20% down payment. Tennessee has 2 state DPA programs total.
Primary Program: Great Choice Plus DPA
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
- Administering Agency
- Tennessee Housing Development Agency (THDA)
- Income Limit
- 80% of Area Median Income
- Purchase Price Cap
- $481,176
Additional Tennessee DPA Programs
Hardest Hit Fund (HHF) Targeted Areas
Forgivable Loan$15,000
Forgiven over time if you remain in the home as your primary residence.
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Down Payment Calculator
Down Payment Planner
Tennessee median pre-loaded
Your Savings Plan
Timeline
10.5 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →Frequently Asked Questions
What down payment assistance is available in Tennessee?
Tennessee's primary DPA program is the Great Choice Plus DPA, administered by the Tennessee Housing Development Agency (THDA). It provides up to $7,500 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage. Additional programs include Hardest Hit Fund (HHF) Targeted Areas.
How much down payment do I need in Tennessee after using DPA?
On a $313,544 home (Tennessee median), a 20% down payment is $62,709. With the Great Choice Plus DPA covering $7,500, your remaining gap would be $55,209. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Tennessee down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage.
Can I combine Tennessee DPA with other assistance programs?
Yes — Tennessee's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Tennessee down payment assistance?
The Great Choice Plus DPA requires income at or below 80% of the Area Median Income (AMI) for your county. AMI limits vary by location and household size. Your lender or the Tennessee Housing Development Agency (THDA) can confirm the exact limit for your area.
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