First-time home buyer programs in Tennessee
Tennessee's THDA pairs its Great Choice 30-year fixed mortgage with Great Choice Plus assistance, offered two ways: a $6,000 forgivable second, or an amortizing second worth up to 5% of the price (capped at $15,000). With Nashville now one of the most expensive FHA markets in the South, the assistance math matters more than ever.
Brokers in our network can pair these programs with competing loan offers — free, no obligation.
Great Choice Home Loan
THDA's core 30-year fixed mortgage for first-time and qualifying repeat buyers.
- 30-year fixed rate, typically paired with FHA, VA, USDA, or conventional
- Income and purchase-price limits vary by county
- Homebuyer education required
- Gateway to Great Choice Plus assistance
Great Choice Plus
Two down-payment assistance structures — pick the one that fits.
- Deferred option: $6,000 at 0% — forgiven after the 30-year term, due only on early sale or refinance
- Amortizing option: up to 5% of the sales price, capped at $15,000
- Usable for down payment and closing costs
- Stacks with the Great Choice first mortgage
Program terms, income limits, and funding availability change throughout the year — confirm current details with THDA or a licensed Tennessee broker before relying on them.
Pair assistance with an FHA loan in Tennessee
Most Tennessee first-time buyers combine down payment assistance with an FHA first mortgage. 2026 FHA one-unit limits run from $541,287 (the national floor) up to $1,029,250 in Nashville.
See all 2026 Tennessee FHA loan limits →Find a broker in your Tennessee market
Local brokers know which programs are funded right now and how to stack them:
Tennessee first-time buyer FAQ
How much down payment help does Tennessee offer?
Through Great Choice Plus, either a $6,000 0%-interest forgivable second, or an amortizing second worth up to 5% of the sales price (max $15,000). The right choice depends on how long you plan to stay and your monthly budget.
Is THDA assistance available in Nashville's high prices?
Yes — Great Choice works statewide within county purchase-price limits, and Nashville-area limits are set higher to reflect the market. Davidson County's 2026 FHA loan limit is $1,029,250, the highest in the state.
Do I have to be a first-time buyer for THDA programs?
Great Choice targets first-time buyers (no primary-residence ownership in 3 years), but veterans and buyers in targeted counties can qualify as repeat buyers.
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