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Down Payment Help in Tennessee
Buying a home in Nashville or Middle Tennessee can be tough. Especially saving for a down payment. This program helps first-time and moderate-income buyers get into a home sooner.
See if you qualify for THDA assistanceKeith will check your county limits and walk you through both assistance options.
Who Qualifies
- ✓First-time homebuyers, or anyone who has not owned a home in the past 3 years.
- ✓Minimum credit score of 640 for all borrowers on the application.
- ✓Household income within THDA limits for your county (see table below).
- ✓Home purchase price at or below $500,000 statewide.
- ✓Must complete a THDA-approved homebuyer education class to receive down payment assistance.
- ✓Buying a primary residence in Tennessee.
How It Works: Great Choice Plus
- 1You apply for a THDA Great Choice first mortgage (30-year fixed, FHA or USDA-backed).
- 2You choose one of two Great Choice Plus assistance options: Deferred or Amortizing.
- 3Deferred Option: up to $6,000 or $10,000 as a forgivable second mortgage at 0% interest, forgiven after 10 years.
- 4Amortizing Option: up to 5% of the purchase price (max $15,000) as a 30-year second mortgage at the same rate as your first mortgage.
- 5Assistance covers your down payment, closing costs, or both.
- 6Close on your home and move in.
Income and Purchase Price Limits for Middle Tennessee (Updated May 2026)
THDA updates its limits annually. The figures below are from the official THDA chart dated May 18, 2026. All counties have a $500,000 purchase price limit.
Middle Tennessee income limits:
Davidson County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Williamson County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Rutherford County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Sumner County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Wilson County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Robertson County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Cheatham County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Maury County: $113,040 (1-2 persons) / $131,880 (3+ persons)
Dickson County: $137,760 (1-2 persons) / $160,720 (3+ persons)
Montgomery County: $98,994 (1-2 persons) / $113,843 (3+ persons)
Note: Davidson, Williamson, Rutherford, Sumner, Wilson, Robertson, Cheatham, and Dickson counties are in the highest income tier, giving more Nashville-area buyers access to this program than most people expect. Keith can verify your specific county limits when you reach out.
How It Compares
| Feature | Down Payment Assistance | Standard FHA Loan |
|---|---|---|
| Down Payment | 0% out of pocket (assistance covers it) | 3.5% of home price |
| Credit Score | Generally 640+ | Generally 580+ |
| Mortgage Insurance | Required (can be lower with conventional) | Required |
| Best For | Low cash for down payment, good credit | Lower credit scores, some cash for down payment |
Common Myths About Down Payment Assistance
✓It's for moderate-income buyers too. Income limits vary by county.
✓We make it simple. We guide you through every step.
✓You can combine it with FHA, VA, USDA, or conventional loans.
Frequently Asked Questions
There are two options. The Deferred Option gives you up to $6,000 or $10,000 as a forgivable second mortgage at 0% interest, forgiven after 10 years. The Amortizing Option gives you up to 5% of the purchase price with a maximum of $15,000, paid back over 30 years at the same rate as your first mortgage.
As of May 2026, the income limit for Davidson, Williamson, Rutherford, Sumner, Wilson, Robertson, Cheatham, and Dickson counties is $137,760 for 1-2 person households and $160,720 for 3 or more persons. Maury County is $113,040 / $131,880. Montgomery County is $98,994 / $113,843. These are among the highest limits in the state, meaning more Nashville-area buyers qualify than most people expect.
The statewide purchase price limit is $500,000 as of May 2026. This applies to all Tennessee counties.
For most of Middle Tennessee, yes, you need to be a first-time buyer or not have owned a home in the past 3 years. However, Davidson, Williamson, Rutherford, Sumner, Wilson, Robertson, Cheatham, and Dickson counties are all designated targeted counties, which means the first-time homebuyer requirement is waived. Repeat buyers can use the program in these counties.
All borrowers on the application must have a minimum credit score of 640. If your score is below that, we can connect you with a THDA-approved counselor to help you improve it before applying.
Yes, a THDA-approved homebuyer education class is required to receive the Great Choice Plus down payment assistance. The class is typically a few hours and can be done online. We can point you to approved providers.
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LearnReady to Get Started?
Keith Goeringer (NMLS #488023) will review your file and explain which questions still need an answer before you rely on a loan option.
See if you qualify for THDA assistance(615) 955-0461Questions About Down Payment Assistance?
Keith Goeringer will compare the program with your actual income, debts, cash, property, and current guidelines before you make a decision.
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