Tennessee down payment assistance directoryA lower rate and down payment help for Tennessee's teachers and first responders
Homeownership for Heroes is a THDA home loan priced 0.5% below the standard Great Choice rate. Add a Heroes Plus down payment option and you may need far less cash to close. It's open year-round, and since May 2026 full-time K-12 teachers qualify too.
- 0.5% below THDA's Great Choice rate
- Down payment help up to $15,000 (or $25,000 on new builds)
- Teachers, police, fire, EMS, dispatch and veterans
- $500,000 price limit in every county
The program at a glance
Homeownership for Heroes in four numbers
THDA sets the rules and posts rates daily. You get the loan from a THDA-approved lender. Numbers below are from THDA's materials as of November 2026.
Who qualifies
Built for the people who serve Tennessee
You must work in Tennessee now in one of these roles, or be a service member or veteran. THDA also checks your household income against your county's limit.
Teachers & principals
Full-time K-12 teachers in Tennessee public or private schools, added in May 2026.
Law enforcement
State and local officers currently employed in Tennessee.
Firefighters
Firefighters currently employed in Tennessee.
EMTs & paramedics
Licensed or certified EMTs and paramedics working in Tennessee.
Emergency dispatchers
State and local public safety dispatchers, listed on THDA's consumer page.
Military & veterans
Active duty, National Guard, veterans and eligible spouses of veterans.
By county
Find the limits where you're buying
The $500,000 price limit is the same statewide, but income limits run from $94,900 to $162,540 depending on county and household size. Pick your county.
All county guides · Income limits · What can I afford? · All assistance programs
Down payment assistance
Four Heroes Plus down payment options
5% of price, up to $15,000
A second loan for up to 5% of the sales price, capped at $15,000. It is repayable: you make monthly payments over 30 years at the same rate as your first mortgage.
$6,000 forgivable
A 0% second loan with no monthly payments, forgiven after 10 years. If you sell or refinance before then, the full amount is due.
$10,000 forgivable (pilot)
Same terms as the $6,000 option: 0%, no payments, forgiven after 10 years, due in full if you sell or refinance sooner. It's a pilot that began with rate locks on July 1, 2026; THDA hasn't published an end date.
Up to $25,000 for a new build
For a newly built or proposed-construction home. It is repayable: 0% interest, paid back in monthly installments over 15 years.
Eligibility requirements
What you need to qualify
An eligible job
You must be currently employed in Tennessee as a full-time K-12 teacher or principal, law enforcement officer, firefighter, EMT, paramedic or emergency dispatcher, or be active duty, Guard, a veteran or an eligible spouse of a veteran. See every eligible role.
First-time buyer (usually)
You can't have owned your principal residence in the past 3 years, and both spouses must meet that. The rule is waived in THDA's 43 targeted counties and targeted census tracts, and for qualified veterans and military anywhere in Tennessee.
Income under your county's limit
Limits depend on your county and household size (1-2 people or 3+). They range from $94,900 to $162,540. See the full chart.
Credit and debt
Everyone on the loan needs a credit score of at least 640. THDA's maximum debt-to-income ratio is 45%.
Homebuyer education
Every borrower takes a THDA- or HUD-approved class: in person, or the eHomeAmerica online course plus a one-hour one-on-one session.
A home you'll live in
Price of $500,000 or less. You must move in within 60 days of closing and live there for the life of the loan. No second homes or rentals; 1-4 units are allowed if you live in one.
Loan terms
The first mortgage
Heroes is a THDA Great Choice first mortgage with the rate cut built in. For example, THDA's Nov 6, 2026 rate sheet showed Great Choice at 6.625% and Homeownership for Heroes at 6.125%. Rates change daily.
Loan types
- FHA, VA or USDA-RD, 30-year fixed rate
- VA and USDA can finance up to 100% of the price; FHA up to 96.5%
- Whether the Heroes rate applies to THDA's conventional option is unclear in THDA's materials, so ask your lender
Costs and fees
- Customary lender fees capped at $1,800 on the first mortgage
- Down payment loan settlement fee up to $200
- No discount points to buy down the rate
Good to know
- No prepayment penalty
- Assumable by a qualified buyer
- A federal recapture tax may apply if you sell within 9 years; Heroes loans are eligible for THDA's Recapture Reimbursement Program
How to apply
From pre-approval to closing
- Confirm your job is on the list and that you're currently employed in Tennessee (or are a service member or veteran). Our quick check helps.
- Look up your county's income limit and keep the price at $500,000 or less. See the limits.
- Get pre-approved with a THDA-approved lender for a Homeownership for Heroes loan and pick a Heroes Plus down payment option.
- Finish THDA-approved homebuyer education. Every borrower has to complete it.
- Sign a contract on an eligible home. Your lender locks the Heroes rate and submits the loan to THDA.
- Send your employment and license or military documents, close, and move in within 60 days.
Proof of your job
Proof you're currently employed in Tennessee plus your license or certification in the profession. THDA hasn't published a teacher-specific list, so your lender tells you exactly what to send.
Military paperwork
A current LES for active duty, or a DD-214 for veterans (DD-4 for re-enlistment). Veterans may also use THDA's Veteran Exemption Application Declaration (HO-0460).
The usual mortgage file
Pay stubs, tax returns, bank statements and ID for everyone on the loan, plus your homebuyer education certificate.
We're here to help
A loan officer who knows this program
THDA doesn't lend directly. Only THDA-approved lenders can lock the Heroes rate, and they confirm your job, income and county limit before you shop. A loan officer who does these loans often can also price each Heroes Plus option side by side so you see the monthly cost of each. You can browse THDA's lender list, or let us match you.
Self-employed & 1099 buyers
Self-employed or 1099? You may still qualify
THDA's Great Choice loan and most Tennessee city programs are open to business owners and contractors who can show two years of income. See how it works.
- Two years of tax returns is the usual starting point
- Lenders count net income, with depreciation added back
- A W-2 teacher or officer with a self-employed spouse can still use Heroes
Rideshare, delivery & gig workers
Drive for Uber, Lyft or DoorDash?
Gig drivers can use THDA's Great Choice loan and most Tennessee city programs. The catch is how lenders count your income.
- Plan on two years of driving on your tax returns
- Lenders use net profit after the mileage deduction
- Side-gig income counts once it has history
Frequently asked questions
Straight answers about Homeownership for Heroes
Can Tennessee teachers use Homeownership for Heroes?
Yes. Since May 2026, kindergarten through 12th grade teachers and principals in a full-time teaching position at a Tennessee public or private school qualify. They get the same 0.5% rate reduction and down payment options as first responders and military.
How much down payment help can I get?
You choose one Heroes Plus option: up to 5% of the price (max $15,000) as a 30-year repayable loan at your first mortgage rate, a $6,000 or $10,000 0% loan forgiven after 10 years, or up to $25,000 at 0% repaid over 15 years on a new build.
Is the down payment help a grant?
No. Two options are repayable loans with monthly payments. The $6,000 and $10,000 options are forgivable loans with no payments, but they're due in full if you sell or refinance within 10 years.
How big is the rate discount?
Heroes is priced 0.5% below THDA's Great Choice rate on the day your lender locks. On THDA's Nov 6, 2026 rate sheet that was 6.125% versus 6.625%. Rates change daily, so your lender quotes the current number.
Do I have to be a first-time buyer?
Usually. You can't have owned your principal residence in the past three years. That's waived if you buy in one of THDA's 43 targeted counties or a targeted census tract, and for qualified veterans and military anywhere in the state. Teachers and first responders get no separate waiver.
What credit score and income do I need?
Everyone on the loan needs at least a 640 score, and debt-to-income can't top 45%. Income limits depend on county and household size; in the Nashville-area counties they're $139,320 for 1-2 people and $162,540 for 3 or more. See every county.
Do dispatchers and principals qualify?
THDA's consumer page lists public safety emergency dispatchers and principals. THDA's lender guide, revised Sept. 21, 2026, doesn't name them in the Heroes section yet, so have a THDA-approved lender confirm before you count on it.
What loan types can I use?
FHA, VA and USDA-RD, all 30-year fixed. VA and USDA can finance up to 100% of the price, FHA up to 96.5%. THDA's materials disagree on whether conventional loans get the Heroes rate, so ask your lender.
Is homebuyer education required?
Yes, for every person on the loan. You can attend a THDA- or HUD-approved class in person, or take the eHomeAmerica online course plus a one-hour one-on-one follow-up.
How do I apply?
Through a THDA-approved lender. THDA doesn't lend directly. The lender checks eligibility, locks the Heroes rate and submits your loan. Start with our free eligibility check.
See if you qualify in 2 minutes
Answer six questions and we'll match you with a loan officer who offers Homeownership for Heroes. No credit pull.
