How much down payment do I need to buy a house in Tennessee?

You can buy a home in Tennessee with as little as 0% down (VA/USDA), 3% down ($9,450 conventional), or 3.5% down ($11,025 FHA) on the median-priced home of $315,000.

What income do I need to buy a home in Tennessee?

To afford the median-priced home in Tennessee ($315,000) with a 30-year mortgage at 6.15%, you typically need a household income of approximately $77,688 per year (using the 28% rule). The median income in Tennessee is $56,071.

What is the FHA loan limit in Tennessee for 2026?

The FHA loan limit in Tennessee for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Tennessee 2026

Q: What first-time home buyer programs are available in Tennessee?

Tennessee offers 2 major first-time buyer programs including THDA Great Choice, THDA Homeownership for the Brave. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Tennessee. 2+ down payment assistance programs, FHA loans from 5.95%, and step-by-step guidance.

Median Price

$315,000

Min Down (FHA)

$11,025

DPA Programs

Best Rate

5.95%

Check My Tennessee Eligibility

What First-Time Buyer Programs Are Available in Tennessee?

Tennessee offers 2 major first-time home buyer assistance programs. These include THDA Great Choice, THDA Homeownership for the Brave. Programs provide up to $25,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Tennessee?

You can buy a home in Tennessee with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$11,025), and conventional loans start at 3% ($$9,450) on the median price of $315,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,868	620
USDA Loan	0%	$0	$1,919	640
Conventional 3%	3%	$9,450	$1,861	620
FHA Loan	3.5%	$11,025	$1,813	580
Conventional 20%	20%	$63,000	$1,535	620

Tennessee Down Payment Assistance Programs

THDA Great Choice

Below-market rate with DPA up to $25K

Up to $25,000forgivable

THDA Homeownership for the Brave

DPA for military and veterans

Up to $25,000forgivable

5 Steps to Buy Your First Home in Tennessee

To buy your first home in Tennessee, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Tennessee, you may need as little as $11,025 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Tennessee rates: 6.15% (30-year), 5.95% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Tennessee DPA Programs

Tennessee has 2+ DPA programs. The THDA Great Choice offers up to $25,000. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Tennessee: Nashville, Memphis, Knoxville, Chattanooga, Clarksville. Median price is $315,000 (+4.8% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Tennessee typically run 2-5% of the purchase price ($9,450-$15,750). Some DPA programs also cover closing costs.

Start Your Tennessee Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

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Tennessee First-Time Buyer FAQ

What first-time home buyer programs are available in Tennessee?

Tennessee offers 2 major programs: THDA Great Choice, THDA Homeownership for the Brave. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.