Updated 1/26/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.

Connect with a DPA team

How Down Payment Assistance Works

I need to give a quick overview of how down payment assistance works. After that, the programs are listed.

With down payment assistance, you'll run into two different types:

  • A grant

  • A loan

A Grant

If we meet the qualifications up front, then it's money that does not need to be repaid.

A Loan

If the down payment assistance comes in the form of a loan, then pay attention to the three different types:

  • Repayable

  • Deferred

  • Forgivable

Repayable is just as most imagine. It charges interest over a certain amount of time, with monthly payments until it's paid off.

Deferred loans usually don't require a monthly payment, and typically don't charge interest. It's due in full when you refinance, sell the home, or when it ceases to be your primary residence.

Forgivable loans will disappear if you meet the criteria, which usually comes down to keeping the home as your primary residence for a specific amount of time.

Okay with that, here are the programs!

Tennessee

Tennessee Housing Development Agency (THDA) Great Choice Plus Program

  • Deferred Option: $6,000 in assistance.

  • - Or - Amortizing Option: Up to 5% of the sales price (max $15,000).

  • Deferred: 0% interest. No monthly payments. Repayment is deferred until the end of the 30-year term (forgiven if you stay 30 years) or due in full upon sale or refinance.

  • - Or - Amortizing: 30-year loan with monthly payments at the same interest rate as the first mortgage.

  • Eligibility: First-time homebuyers (and repeat buyers in targeted areas) with a minimum credit score of 640. Must be paired with a THDA Great Choice first mortgage.

  • More Information: THDA Great Choice Plus Program

City of Memphis Down Payment Assistance Program

  • Assistance: Provides up to 10% of the purchase price (max $25,000) for down payment and closing costs.

  • Terms: Forgivable deferred loan.
    • Amounts <$15,000: Forgiven after 5 years.

    • Amounts >$15,000: Forgiven after 10 years.

    • 0% interest, no monthly payments.

  • Eligibility: First-time homebuyers purchasing within Memphis city limits. Household income generally capped at 80% AMI.

  • More Information: https://memphistn.gov/down-payment-assistance-program/

City of Knoxville Down Payment Assistance

  • Assistance: Provides financial assistance (amount varies by project) for down payment.

  • Availability Note: As of late 2024/2025, general DPA funds are often fully committed; however, funds remain available specifically for homes developed by partners like Home Source East Tennessee and East Tennessee Housing Development Corp.

  • Eligibility: Low-to-moderate income buyers purchasing specific affordable housing units within the city.

  • More Information: Knoxville Housing Development

City of Clarksville First-Time Homebuyers Program

  • Assistance: Provides up to $15,000 (amount subject to funding cycles) for down payment and closing costs.

  • Terms: Forgivable loan. Forgiven over a 5-year period of residency.

  • Eligibility: First-time homebuyers purchasing within Clarksville city limits; income limits apply.

  • More Information: Clarksville First-Time Homebuyers Program

The Housing Fund

  • Assistance: Provides loans of up to $35,000 (or more for specific Shared Equity programs) for down payment and closing costs.

  • Terms: Revolving Loan. Typically a fixed interest rate (e.g., 5%) amortized over 10 or 15 years. (This is not a grant; monthly payments are required).

  • Eligibility: Available statewide (though based in Nashville). Income limits vary by county (up to 120% AMI for some products).

  • More Information: The Housing Fund

Updated 1/26/2026

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.