Who qualifies for Chattanooga's down payment program?
The City of Chattanooga Down Payment Assistance Program is run by the Department of Economic Development's housing policy team through participating lenders. It is a 0% deferred second mortgage of up to $15,000 with no payments. It is forgiven at the end of 30 years and repaid only if you sell or do a cash-out refinance. Through a city-THDA partnership, the combined help can reach $21,000. That is one of the few local programs in Tennessee that says outright it stacks with the state loan. Guidelines were revised in May 2026, and the program depends on city funding.
You must be a first-time buyer, meaning no ownership in the past three years (THDA's first-time definitions are also accepted), with household income up to 120% of AMI. For fiscal 2026 that is $81,800 for one person, $105,200 for three and $116,900 for four. The home must sit inside Chattanooga city limits and cost no more than $400,000, measured as the lesser of price or appraised value. You also need approved homebuyer education within 12 months of closing, a professional inspection, an approved lender and at least $1,000 of your own money.
The $400,000 city cap is lower than THDA's $500,000 limit, so check it first if you are a Chattanooga Police or Fire Department employee or a Hamilton County Schools teacher pairing the city money with Homeownership for Heroes. Buyers in East Ridge, Red Bank, Soddy-Daisy or Collegedale fall outside the city program. They can still look at the countywide CNE and RockPointBank loan, explained on the Hamilton County page. The program finder shows how these layers fit together for you.
Programs in Chattanooga
City of Chattanooga
- For
- First-time buyers (no ownership in past 3 years; THDA first-time definitions also accepted) up to 120% AMI
- How much
- Up to $15,000; up to $21,000 total combined with THDA through a city-THDA partnership
- Kind of help
- Forgivable loan
- Income cap
- 120% AMI (FY2026: $81,800 1-person, $93,500 2, $105,200 3, $116,900 4, $126,250 5, $135,600 6)
- Price cap
- $400,000 (lesser of price or appraised value)
- First-timers only?
- Yes
- Fine print
- 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.
Checked against the source November 2026 · how we check
The long versionCounty programs Chattanooga buyers can use
CNE / RockPointBank Down Payment Assistance
Open nowHamilton County
- For
- Low- to moderate-income buyers of single-family primary residences in Hamilton County
- How much
- $10,000 to $50,000
- Kind of help
- Loan with monthly payments
- Income cap
- 80% AMI
- Fine print
- 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.
Checked against the source November 2026 · how we check
Help that covers the whole state
Buyers in Chattanooga can also use 4 programs that reach every corner of Tennessee, Homeownership for Heroes among them. See the full Tennessee list or try the program matcher.
Your county page: Hamilton County
Homebuyer class options near Hamilton County
Plan on a homebuyer class; almost every assistance program makes you take one before the closing date. Here is who near Hamilton County is HUD-approved to teach it or sit down with you one on one:
| Agency | Office in | Miles away | Help offered | Spoken in | Ways to attend |
|---|
| Chattanooga Neighborhood Enterprise, Inc. | Chattanooga | 13 mi | homebuyer education class, pre-purchase counseling | English | Face to Face, Phone, Internet |
Pulled from HUD's housing counseling agency list. Programs don't all accept the same classes.
Which class does your program want? Ask a loan officer who does Tennessee programs. They'll name the class that counts and can get your pre-approval going at the same time.
See if I qualify
What people in Chattanooga ask
How much down payment help 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 through the city-THDA partnership. Funding-dependent.
What is the price limit for Chattanooga down payment assistance?
$400,000, measured as the lesser of the sales price or appraised value. The home must be inside Chattanooga city limits.
Do I have to be a first-time buyer in Chattanooga?
Yes. You cannot have owned a home in the past three years; THDA's first-time buyer definitions are also accepted. Income must be at or below 120% of AMI.
