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Am I eligible?

The Housing Fund (Nashville-based nonprofit lender)

The Housing Fund down payment loan: $5,000 to $35,000 anywhere in Tennessee

A Nashville nonprofit lends $5,000 to $35,000 toward down payment, prepaids and closing costs to buyers up to 120% of their county's area median income. You repay it monthly.

The Housing Fund Down Payment Assistance Loan

Open now

The Housing Fund (Nashville-based nonprofit lender)

For
Buyers anywhere in Tennessee up to 120% AMI (set by county); not limited to first-time buyers
How much
$5,000 to $35,000 for down payment, prepaids and closing costs
Kind of help
Loan with monthly payments
Income cap
Up to 120% of AMI for the county (THF income guidelines page)
First-timers only?
No
Pairs with the 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.

Checked against the source November 2026 · how we check

Could I use this?

How the loan works

The Housing Fund (THF) makes a second mortgage that covers down payment, prepaid items and closing costs. The amount runs from $5,000 to $35,000. This is not a grant: it is a repayable loan with a 120-month or 180-month term at a 5% fixed promotional rate, which THF says holds "until further notice." Plan for that payment in your monthly budget alongside your first mortgage.

Your first mortgage must be an FHA-approved loan from a Tennessee-approved lender, and the home must be your primary residence.

Who qualifies

The program is statewide and you do not have to be a first-time buyer. Household income can go up to 120% of the area median income for your county, using THF's income guidelines. Credit minimums depend on the size of the loan: 600 for amounts under $10,000 and 620 for $10,000 to $35,000. You put in at least 1% of the sales price from your own money and finish homebuyer education with a THDA-approved provider.

That 600 to 620 floor is lower than THDA's 640, which makes THF worth a look if your score sits just under THDA's line. Our credit score guide covers how lenders read your score.

Using it with Homeownership for Heroes

THF's page does not say whether its loan can sit behind a THDA first mortgage such as Homeownership for Heroes. Heroes already has its own Heroes Plus down payment options, so many teachers and first responders will compare the two rather than stack them. A participating lender confirms whether they combine for your file. In Nashville, THF also runs a community land trust; see the Davidson County guide for local context.

Worth knowing: because this loan has a monthly payment, your lender counts it in your debt-to-income ratio. A larger amount at a 120-month term means a higher payment than the same amount at 180 months, so ask your loan officer to price both terms before you choose. The promotional 5% rate can change for future borrowers, so lock in your terms with the lender rather than relying on what a friend got last year.

How to apply

  1. Check your county's 120% AMI figure on THF's income guidelines page.
  2. Get pre-approved for an FHA loan with a Tennessee-approved lender who works with THF.
  3. Complete homebuyer education from a THDA-approved provider.
  4. Have at least 1% of the price ready from your own funds, then apply through the lender.

Want to see whether THDA's program fits you first? Check your eligibility.

Questions about The Housing Fund Down Payment Assistance Loan

Is The Housing Fund down payment help a grant?

No. It is a second loan repaid over 120 or 180 months at a 5% fixed promotional rate. You make monthly payments on it.

Do I need to be a first-time buyer for The Housing Fund loan?

No. The program is open to buyers anywhere in Tennessee up to 120% of area median income, whether or not they have owned before.

What credit score does The Housing Fund require?

At least 600 for loans under $10,000 and at least 620 for loans from $10,000 to $35,000.

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.