Down payment assistance in Tennessee: every program (2026)
Most Tennessee buyers start with THDA's statewide options, then check for a city, county or employer program on top. Here is what we verified, with the catch for each.
Down payment help in Tennessee comes in three forms: grants you never repay, forgivable loans that go away if you stay in the home long enough, and second loans you pay back monthly or when you sell. The type matters as much as the dollar amount, so every card below lists it. If a program has not posted its repayment terms, we say so instead of guessing.
Some doors are shut right now. The City of Knoxville's down payment program is closed except for homes built by three local nonprofit developers, and the Fahe Rise Up grant for first-generation buyers in Kentucky and Tennessee has stopped taking applications. Shelby County's own program is listed, but its official sheet and recent news coverage give different amounts, so confirm with the county before you count on it. Many Memphis and regional programs are marked "Funding varies" because money is released in rounds.
Free: the Tennessee Down Payment Assistance Checklist. Documents, steps, programs and the questions to ask, on one printable page. Get the checklist
Not sure where to start? The program finder narrows these programs to the ones that fit your county, job and situation. Every program below was checked against its official source; see how we verify.
Homeownership for Heroes
Homeownership for Heroes is a THDA Great Choice home loan (FHA, VA or USDA, 30-year fixed) priced 0.5% below the standard Great Choice rate. Through Heroes Plus you can add one down payment option: a repayable 5% loan up to $15,000, a forgivable 0% loan of $6,000 or $10,000, or up to $25,000 repaid at 0% on a new-build home. You apply through a THDA-approved lender, not through THDA. How it works · Check eligibility
The Housing Fund (Nashville-based nonprofit lender)
Who
Buyers anywhere in Tennessee up to 120% AMI (set by county); not limited to first-time buyers
Help
$5,000 to $35,000 for down payment, prepaids and closing costs
Type
Repayable loan (monthly payments)
Income limit
Up to 120% of AMI for the county (THF income guidelines page)
First-time buyers only
No
Combines with state program
unknown - THF requires an FHA-approved first mortgage from a Tennessee-approved lender; whether it can sit behind a THDA first mortgage is not stated
Repayable second loan, 120- or 180-month term at a 5% fixed promotional rate 'until further notice'. Min credit 600 under $10,000, 620 for $10,000-$35,000. Borrower contributes at least 1% of sales price; homebuyer education from a THDA-approved provider required; primary residence.
Federal Home Loan Bank of Cincinnati, through participating member banks
Who
Buyers at or below 80% of the Mortgage Revenue Bond income limit for the county; first-time buyers must complete homebuyer counseling
Help
Up to $20,000 grant
Type
Grant
Income limit
80% of MRB limits for the property's county
First-time buyers only
No
Combines with state program
unknown - depends on whether the THDA-approved lender is also an FHLB Cincinnati member
Reservations opened 8:00 a.m. ET April 6, 2026, first-come first-served until funds are reserved (per member bank Peoples Exchange Bank page). The FHLB pages are script-rendered and could not be read this session, so remaining 2026 funds and Tennessee member lenders are unverified.
Low/moderate-income buyers purchasing anywhere in Memphis city limits
Help
Up to 10% of sales price, not to exceed $25,000 (cap applies across City DPA programs, subject to funding)
Income limit
80% AMI
Price limit
Current HUD HOME value limits
Other rules
Property must be inside Memphis city limits and pay Memphis city taxes; apply through an approved DPA lender with the Income Asset Questionnaire; DPA promissory note and deed signed after first mortgage
City page says requirements 'may include' first-time buyer status; per-program amounts and forgiveness terms not posted. Contact 901-636-7300.
Up to $3,500 per county program sheet (undated); a Local Memphis news report says the max rose to $6,000 at 3% for 15 years - not confirmed on an official page
Type
Repayable loan (monthly payments)
County program sheet: 5% fixed, 10-year term. SCDH's PY2026 Action Plan (Jul 1 2026-Jun 30 2027) says it plans to continue a DPA program countywide, funded with state and local funds.
Rise Up - Memphis and West Tennessee (United Housing)
Funding varies
Memphis and West Tennessee
Who
First-time, first-generation homebuyers
Help
$25,000 grant (total pool up to $2 million)
Type
Grant
First-time buyers only
Yes
Other rules
Must use an FHLB Cincinnati member lender
Announced Aug-Oct 2025 (news reports). Official FHLB page could not be rendered; county list and whether funds remain are unverified. Madison County inclusion assumed from 'West Tennessee' wording.
Inside Chattanooga city limits; approved homebuyer education within 12 months of closing; at least $1,000 of buyer's own funds; professional home inspection; approved lender
0% deferred second mortgage, no payments, forgiven at end of 30 years; repaid if sold or cash-out refinanced. Guidelines revised 05.08.2026. Explicitly stacks with THDA. Contact Megan Miles, (423) 643-7440.
Low- to moderate-income buyers of single-family primary residences in Hamilton County
Help
$10,000 to $50,000
Type
Repayable loan (monthly payments)
Income limit
80% AMI
Other rules
Min credit 660, max DTI 45%, buyer contributes at least $1,000, eHome America homebuyer education
Launched July 13, 2026. 30-year second mortgage at the first-mortgage rate, no prepayment penalty. Source is a news release; CNE contact cnelending.homes, 423-402-8978.
Sullivan County, Washington County, Kingsport, Bristol TN, Johnson City, Bluff City (and Bristol VA)
Who
Low- and moderate-income buyers (80% AMI)
Help
$1,000 to $15,000 based on a subsidy analysis
Type
Deferred loan (repaid later)
Income limit
80% AMI (2026 dollar figures not posted; 2021 packet showed $47,700-$48,250 for a family of 4)
First-time buyers only
Yes
Other rules
Homebuyer education before closing; principal residence; minimum buyer investment ($500 in the 2021-22 packet); Jonesborough town limits excluded per 2021-22 packet
Due-on-sale deferred loan. 2021-22 packet terms (10-year, forgiven 20%/yr in years 6-10; price caps $170K-$190K; no ownership in last 12 months) may be outdated. Call Rene' Mann, FTDD, 423-722-5122 before applying.
First-time, mortgage-ready buyers at or below 80% of Nashville AMI
Help
Reduced price - land held in trust and leased; buyer owns the house
Income limit
80% of Nashville-Davidson AMI
First-time buyers only
Yes
Other rules
Pre-approval from a THF lending partner; homebuyer education and financial counseling; primary residence; $600 processing fee at closing; resale restrictions
Running prequalified list served first-come, first-served.
HUD Good Neighbor Next Door: teachers, police, firefighters and EMTs can buy listed HUD homes in revitalization areas at 50% off list price, and must live there 3 years. Tennessee listings not checked: HUD's GNND page rendered without content this session. Point readers to the HUD search link and filter by Tennessee.
FHA loan limits by county: FHA loans need 3.5% down with a 580 credit score.
Can you combine programs?
Sometimes. Chattanooga is the only local program we found that says outright it works with THDA: through a city and THDA partnership, a buyer inside city limits can reach up to $21,000 in combined help. Memphis caps its city assistance at 10% of the price or $25,000 across all City programs, so you cannot stack two Memphis incentives past that line. The FHLB Cincinnati Welcome Home grant only works if your lender is an FHLB Cincinnati member bank.
For everything else, including The Housing Fund's statewide loan and the Murfreesboro and Tri-Cities programs, the official pages do not say whether they can sit behind a THDA first mortgage. A participating lender confirms that before you sign a contract. See grant vs. forgivable vs. repayable help to compare what you would owe.
Questions
Is there a down payment grant in Memphis?
The City of Memphis offers up to 10% of the sales price, capped at $25,000, through several programs, including ones for city police, firefighters and Memphis-Shelby County Schools staff. The city has not posted whether that money is forgiven or repaid, so ask your approved lender to show you the note before closing.
Does Nashville have its own down payment assistance?
We did not find a Metro Nashville government program for buyers; MDHA's HOME homebuyer money goes to developers. In Davidson County the options are The Housing Fund's community land trust homes, its statewide repayable loan, and THDA's Heroes Plus or Great Choice Plus.
Is Knoxville's down payment program open?
Not for most buyers. The City of Knoxville says applications are closed except for homes developed by Home Source East Tennessee, Neighborhood Housing Inc. or East Tennessee Housing Development Corp. THDA's statewide options still work anywhere in Knox County.
How much can I get in Chattanooga?
Up to $15,000 from the city as a 0% deferred loan forgiven after 30 years, or up to $21,000 total when combined with THDA. You must be a first-time buyer under 120% of area income buying inside city limits at $400,000 or less.
Is there statewide help besides THDA?
Yes. The Housing Fund lends $5,000 to $35,000 anywhere in Tennessee for buyers up to 120% of area income, repaid monthly at a 5% fixed promotional rate. FHLB Cincinnati's Welcome Home grant of up to $20,000 also runs in Tennessee through member banks while funds last.
Program details summarized from official pages as of November 2026. Funding and rules change; confirm with the program or a participating lender.
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