How does Tennessee down payment help work?
Updated November 12, 2026
The Tennessee Housing Development Agency, THDA, offers a second loan for your down payment and closing costs when you use its Great Choice home loan and your income is under its limit for your county.
The two options
| Option | Amount | Terms |
|---|---|---|
| No payments | Up to $6,000 or up to $10,000 | 0 percent interest. Forgiven at the end of 10 years. Due in full if you sell or refinance sooner. |
| With payments | Up to 5 percent of the price, $15,000 maximum | Repaid over 30 years at the same rate as the first loan. |
THDA also lists an option for newly built homes. THDA and its approved lenders decide which option and amount apply to you.
Who qualifies
THDA asks for a credit score of 640 or higher and a homebuyer education class. Your household income has to be under the limit for the county where you buy, and the home has to be under THDA's price limit.
| County | Income limit, 1 to 2 people | Income limit, 3 or more |
|---|---|---|
| Davidson | $139,320 | $162,540 |
| Rutherford | $139,320 | $162,540 |
| Sumner | $139,320 | $162,540 |
| Wilson | $139,320 | $162,540 |
| Maury | $124,320 | $145,040 |
Source: THDA acquisition cost and income limits chart, August 2026.
What to know before you count on it
The help comes only with a THDA Great Choice loan from a THDA approved lender. THDA loans carry a federal recapture rule that can apply if you sell within the first nine years. Ask the lender to explain it.
Next steps
The calculator checks your income against the limit for each county. Open the calculator. THDA's own pages have the full terms: down payment assistance and first time homebuyers.
Sources: THDA down payment assistance page and eligibility requirements, read November 12, 2026. Own Nashville is not affiliated with THDA.