How much down payment assistance can I get in Tennessee?

THDA Great Choice Plus provides up to 5% of the purchase price as DPA. On a $400,000 home in Nashville, that is $20,000. The DPA is a forgivable second mortgage — forgiven 10% per year over 10 years. If you stay in the home for 10 years, the entire amount is forgiven.

What are THDA income limits for 2026?

THDA income limits vary by county. Most Tennessee counties cap at $64,000-$97,000 for 1-2 person households. Higher-cost areas like Nashville (Davidson County) have higher limits. Check THDA.org for your county limits.

Do I have to be a first-time home buyer for THDA?

Yes, most THDA programs require first-time buyer status (no home ownership in past 3 years). However, buyers in federally designated Target Areas are exempt from this requirement. Veterans and active military may also be exempt.

Tennessee Down Payment Assistance 2026: THDA Great Choice Plus

Q: What down payment assistance is available in Tennessee for 2026?

Tennessee Housing Development Agency (THDA) offers the Great Choice Plus program — up to 5% of the purchase price as a forgivable second mortgage (forgiven over 10 years). Combined with a Great Choice first mortgage (FHA or conventional) at below-market rates. Requires 640+ credit and income limits apply.

Updated August 2, 2026 · 10 min read · By David Rodriguez, Rate Specialist

TL;DR: THDA Great Choice Plus gives 5% of your purchase price as a forgivable second mortgage — forgiven 10% per year over 10 years. On a $400K Nashville home, that is $20,000 in free DPA. Plus below-market FHA/conventional rates. Check if you qualify →

Of purchase price (forgiven 10 yrs)

$20K

On a $400K home in Nashville

640

Min credit score

Interest on DPA second mortgage

THDA Great Choice Plus — 5% Forgivable DPA

THDA (Tennessee Housing Development Agency) offers Great Choice Plus — up to 5% of the purchase price as a forgivable second mortgage at 0% interest. The DPA is forgiven 10% per year over 10 years. If you stay in the home for 10 years, the entire amount is forgiven. Combined with a Great Choice first mortgage at below-market rates. Check your DPA eligibility →

Program	DPA Amount	Type	Min Credit	Best For
Great Choice Plus (FHA)	5% of purchase price	Forgiven over 10 years	640+	Most popular — FHA + 5% DPA forgiven
Great Choice Plus (Conv)	5% of purchase price	Forgiven over 10 years	640+	Conventional option with 5% DPA
Great Choice 30-yr Fixed	Optional (add Plus)	Below-market rate	640+	Below-market FHA/conventional rate

THDA Income Limits by County

County	1-2 Person Household	3+ Person Household
Davidson (Nashville)	$97,000	$111,550
Shelby (Memphis)	$79,200	$91,080
Knox (Knoxville)	$82,000	$94,300
Hamilton (Chattanooga)	$79,200	$91,080
Rutherford (Murfreesboro)	$97,000	$111,550
Williamson (Franklin)	$97,000	$111,550

Source: THDA, 2026 income limits. Check THDA.org for current limits.

Get 5% Forgivable DPA in Tennessee

THDA Great Choice Plus. Forgiven over 10 years. Below-market rates.

Check DPA Eligibility →

How to Apply for THDA DPA

1. Complete THDA-approved homebuyer education (online, ~4 hours)
2. Find a THDA-approved lender
3. Get pre-approved for a Great Choice first mortgage
4. Apply for Great Choice Plus DPA simultaneously
5. Close with first mortgage + 5% DPA second mortgage

FAQ

What down payment assistance is available in Tennessee?

THDA Great Choice Plus — up to 5% of purchase price as a forgivable second mortgage (forgiven over 10 years). Check eligibility →

How much DPA can I get in Tennessee?

5% of the purchase price. On a $400K Nashville home, that is $20,000. Forgiven 10% per year over 10 years. Get pre-approved →

Do I have to be a first-time buyer for THDA?

Yes, most THDA programs require first-time buyer status. Buyers in Target Areas and veterans may be exempt. Compare lenders →

Ready to Buy in Tennessee with DPA?

5% forgivable DPA + below-market rates. Most Tennesseans don't know this exists.