Tennessee DOWN PAYMENT ASSISTANCE PROGRAMS
What is down payment assistance?
Down payment assistance is help from a local or state housing authority, a nonprofit or your lender that gives you the cash infusion you need as a down payment on a mortgage loan.
There are three types of down payment assistance programs:
- Grants: You don't have to pay back a grant.
- Loans: You eventually pay back a loan. Sometimes these loans are interest-free.
- Tax credits: You get a tax credit, which saves you money that you can then use for a down payment.
- Down Payment Approval is separate from the Mortgage Approval Process.
- May have credit score requirements.
- May be Limited to Specific Lenders.
- May be Subjected to Median Income Limits.
Tennessee Housing Development Agency
Deferred Option
THDA will provide $6,000 in the form of a forgivable second mortgage loan on your home. The loan has a 0% interest rate and the payments are deferred until the end of the 30 year term, at that time the loan is forgiven. The loan will be due in full at the time the home is refinanced or sold.
Payment Option
THDA will provid
Deferred Option
THDA will provide $6,000 in the form of a forgivable second mortgage loan on your home. The loan has a 0% interest rate and the payments are deferred until the end of the 30 year term, at that time the loan is forgiven. The loan will be due in full at the time the home is refinanced or sold.
Payment Option
THDA will provide 6% of the sales price in the form of a second mortgage loan on your home, that is paid in monthly payments over 30 years at an interest rate that is the same as the first mortgage rate.
Homebuyer Education
To qualify for down payment assistance, you must complete a pre-purchase Homebuyer Education course from a THDA-approved instructor.
Shelby County Down Payment Assistance Program
May be located anywhere within the boundaries of Shelby County as long as the purchase price does not exceed $300,000. Effective February 15, 2023, up to $6,000 is available as a 3% fixed rate loan and repayment terms can extend up to 15 years (180 months). Debt ratios must not exceed 45% total debt.
Program Requirements & Eligibility
- Must
May be located anywhere within the boundaries of Shelby County as long as the purchase price does not exceed $300,000. Effective February 15, 2023, up to $6,000 is available as a 3% fixed rate loan and repayment terms can extend up to 15 years (180 months). Debt ratios must not exceed 45% total debt.
Program Requirements & Eligibility
- Must invest a minimum of $500 of own funds.
- Must be located within Shelby County.
- Must be able to qualify for either THDA, FHA, VA, or Conventional Financing.
- Complete a certified Homebuyer Education Class.
- You must also meet income limit requirements.
Household Income Limits:
Minimum
$26,100
Maximum
$79,490 (Up to 2 incomes)
$91,414 (3 or more incomes)
Neighborbood Lift Program - Nashville
Neighborbood Lift Program - Nashville
- Provides eligible homebuyers with $15,000 of down payment assistance on qualified properties.
- Provides homebuyer education that will prepare you for finding and financing a home and for managing the financial responsibilities of homeownership.
- Assistance is not limited to first-time buyers.
- Borrowers’ annual income in combination with hous
- Provides eligible homebuyers with $15,000 of down payment assistance on qualified properties.
- Provides homebuyer education that will prepare you for finding and financing a home and for managing the financial responsibilities of homeownership.
- Assistance is not limited to first-time buyers.
- Borrowers’ annual income in combination with household size must be at or below the income limits set for the program in the Nashville area. Income limits are higher for military service members, veterans, law enforcement officers, Pre-K-12th grade teachers, firefighters and emergency medical technicians.
- Properties qualified for the program must be:
- Located in Davidson, Rutherford, Sumner or Wilson County.
- The primary, owner-occupied home of the buyer(s)
- A detached home, townhouse, condominium, 1-4 unit property, Planned Unit Development