See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026
Homebuyer Programs in Chattanooga, TN (2026)
Chattanooga, nestled along the Tennessee River in Hamilton County, offers one of the strongest local homebuyer assistance programs in the state with a median home price around $340,000. The City of Chattanooga First-Time Homebuyer Program provides up to $10,000 as a grant plus up to $50,000 as a zero-interest loan for buyers below 80% AMI. Chattanooga Neighborhood Enterprise (CNE) offers additional down payment assistance up to $15,000. Combined with the THDA Great Choice Plus program offering up to $6,000 as a forgivable loan or up to $15,000 as a repayable loan, Chattanooga buyers could potentially access over $75,000 in total assistance.
City Programs in Chattanooga
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Chattanooga First-Time Homebuyer Grant and Loan Program | Grant | Up to $10,000 grant plus up to $50,000 zero-interest loan (below 80% AMI) or $40,000 loan (80-100% AMI) | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000 grant plus up to $50,000 zero-interest loan (below 80% AMI) or $40,000 loan (80-100% AMI)
- First-time only:
- Yes
State Programs in Tennessee
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| THDA Great Choice Home Loan | Government-Insured Mortgage | 30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years) | Yes | View → |
| THDA Great Choice Plus - Amortizing Option | Repayable Loan | Up to 5% of the purchase price, maximum $15,000 | Yes | View → |
| THDA Great Choice Plus - Deferred Option | Forgivable Loan | $6,000 forgivable second mortgage | Yes | View → |
| THDA Homeownership for Heroes | Government-Insured Mortgage | 0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable | Yes | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- 30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years)
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to 5% of the purchase price, maximum $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $6,000 forgivable second mortgage
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- 0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| CNE Down Payment Assistance Program | Repayable Loan | Up to $15,000 | No | View → |
| The Housing Fund Down Payment Assistance | Repayable Loan | Up to $35,000 | Yes | View → |
- Type:
- Repayable Loan
- Amount:
- Up to $15,000
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Up to $35,000
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. The City of Chattanooga program requires household income at or below 100% AMI. Buyers below 80% AMI qualify for the highest assistance levels. THDA programs have county-specific income limits for Hamilton County.
Step 2: Complete homebuyer education. All programs require homebuyer education classes. Contact Chattanooga Neighborhood Enterprise (CNE) for local courses.
Step 3: Get pre-approved for a mortgage. Contact a THDA-approved lender to apply for a Great Choice Home Loan. A minimum credit score of 640 is required for THDA programs. CNE also offers FHA, VA, USDA, and HomeReady mortgage products.
Step 4: Apply for the City of Chattanooga program. Contact CNE, which administers the city's First-Time Homebuyer Grant and Loan Program. Buyers below 80% AMI can receive up to $10,000 in grant assistance plus a $50,000 zero-interest loan. Buyers at 80-100% AMI can receive up to $10,000 grant plus a $40,000 zero-interest loan.
Step 5: Apply for CNE Down Payment Assistance. CNE offers an additional $15,000 in down payment assistance as a second mortgage for purchases in Hamilton County and surrounding counties.
Step 6: Find a home within program limits. The City program requires a purchase price of $300,000 or less. Contribute a minimum of $500 toward the purchase. The home must be your primary residence.
Frequently Asked Questions
How much down payment assistance can I get in Chattanooga?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay in Chattanooga?+−
What homebuyer education is required?+−
What happens to the city loan if I sell or refinance?+−
Are there programs for veterans and first responders in Chattanooga?+−
Free eligibility check
Buying a home in Chattanooga? 14 programs could help.
How soon are you looking to buy?