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City of Murfreesboro

Murfreesboro Affordable Housing Assistance: up to $10,000 at 0%

Low-income first-time buyers purchasing inside Murfreesboro city limits can get up to $10,000 as a 0% second mortgage with no monthly payments, repaid when they sell.

Murfreesboro Affordable Housing Assistance Program

Funds limited

City of Murfreesboro

For
Low-income first-time homebuyers
How much
Up to $10,000
Kind of help
Deferred loan, due later
Income cap
HUD low-income limits (updated annually; dollar figures not posted)
First-timers only?
Yes
Fine print
HUD-approved homebuyer education; 1% cash toward closing; inside Murfreesboro city limits

0% second mortgage, no monthly payments, repaid on sale. Contact 615-890-4660.

Checked against the source November 2026 · how we check

Could I use this?
Want a heads-up? Murfreesboro Affordable Housing Assistance Program runs on a limited pot of money that can run dry. We'll tell you when a new round is funded.

What you get

The City of Murfreesboro's Community Development Department uses federal CDBG money for this program. It lends up to $10,000 as a 0% deferred second mortgage. You make no monthly payments, but it is not forgiven: you repay it when you sell the home. Funding depends on the city's yearly allocation.

Who qualifies

  • First-time homebuyers only.
  • Income under HUD's low-income limits for the area. The city updates these each year but did not post the dollar amounts, so ask the department for the current table.
  • The home must be inside Murfreesboro city limits. Smyrna and La Vergne addresses do not qualify.
  • HUD-approved homebuyer education.
  • At least 1% of the cost toward closing from your own funds.

How it fits with THDA

Rutherford County has THDA's highest income limits, $139,320 for one or two people and $162,540 for three or more, because it is grouped with the Nashville area. HUD's low-income line is lower, so many Murfreesboro City Schools teachers or Murfreesboro Fire Rescue staff will fit Homeownership for Heroes but not this city loan. Households that fit both should ask whether the city loan can sit behind a THDA first mortgage; the city does not say, so a participating lender confirms whether they combine. If you use both, you would carry the city lien and whichever Heroes Plus option you pick. Our cash-to-close guide helps you see how far $10,000 goes. More local detail is on the Rutherford County page.

Plan for repayment: since the $10,000 comes due when you sell, it reduces the cash you walk away with later. That is still often cheaper than a repayable loan with monthly interest. Keep your closing papers so you know the exact payoff figure, and remember that the 1% you put in must come from your own funds, not from another assistance program.

How to apply

  1. Call Murfreesboro Community Development at 615-890-4660 to get current income limits and confirm funds are available.
  2. Finish a HUD-approved homebuyer class.
  3. Get pre-approved and find a home inside city limits.
  4. Bring your 1% contribution to closing.

Then check your eligibility for THDA's lower rate.

Counties we cover that it serves: Rutherford County

Questions about Murfreesboro Affordable Housing Assistance Program

Is Murfreesboro down payment assistance forgiven?

No. It is a 0% loan with no monthly payments that you repay when you sell.

What is the income limit for Murfreesboro DPA?

HUD's low-income limits, updated yearly. The city does not post the dollar figures, so call 615-890-4660 for the current table.

Can I use Murfreesboro DPA in Smyrna?

No. The home must be inside Murfreesboro city limits.

Could I use this program?

Other programs worth a look

Summarized from the program's official page as of November 2026. Money and rules change, so check current terms with the program or a lender who takes part. Tennessee Down Payment Assistance has no connection to this program.