Homebuyer Programs in Kingsport, TN (2026)
Kingsport is the largest city in the Tri-Cities region of northeast Tennessee, located in Sullivan County and known for its historic downtown, Eastman Chemical Company headquarters, and affordable cost of living. With a median home price around $295,000, Kingsport offers some of the most affordable homeownership opportunities in the state. Buyers here can access the THDA Great Choice Plus program for up to $15,000 in down payment assistance, the FTDD Consortium Down Payment Assistance Program funded through THDA and HUD block grants, and The Housing Fund for up to $35,000 in affordable DPA loans. Holston Habitat for Humanity builds affordable homes with zero-interest mortgages for qualifying families in Sullivan County. The Kingsport Housing and Redevelopment Authority also offers homeownership support including DPA and closing cost assistance for current program participants. By stacking state, regional, and nonprofit programs, Kingsport homebuyers can significantly reduce their upfront costs.
Top Homebuyer Programs in Kingsport
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Kingsport Housing Authority Homeownership Program | Grant | Down payment and closing cost assistance plus FSS escrow and HCV housing assistance payments | Yes | View → |
| FTDD Consortium Down Payment Assistance Program | Grant | Down payment assistance grant (amount varies by funding availability) | Yes | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| Habitat for Humanity of Holston Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage | Yes | View → |
| The Housing Fund Down Payment Assistance | Repayable Loan | Up to $35,000 | Yes | View → |
| THDA Great Choice Home Loan | Government-Insured Mortgage | 30-year fixed-rate mortgage at below-market interest rates | 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 | 0.5% reduced interest rate plus up to $15,000 or 5% of purchase price in DPA | No | View → |
- Type:
- Grant
- Amount:
- Down payment and closing cost assistance plus FSS escrow and HCV housing assistance payments
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Down payment assistance grant (amount varies by funding availability)
- First-time only:
- Yes
- 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $35,000
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- 30-year fixed-rate mortgage at below-market interest rates
- 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:
- 0.5% reduced interest rate plus up to $15,000 or 5% of purchase price in DPA
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. Review income limits for Sullivan County under the THDA Great Choice program. The FTDD Consortium DPA covers Sullivan County and has its own income guidelines. The Housing Fund serves buyers earning up to 120% of the Area Median Income.
- Step 2:
Complete homebuyer education. THDA requires a homebuyer education course from a THDA-certified counselor. Holston Habitat for Humanity also offers homeowner education classes for their program participants in the Tri-Cities area.
- Step 3:
Contact a local housing partner. Reach out to The Housing Fund at 615-780-7000 to discuss DPA loan options up to $35,000. Contact the First Tennessee Development District for their consortium DPA program. If you are a current Kingsport Housing Authority participant, contact Hope Caruthers at 423-392-2545 about their homeownership program.
- Step 4:
Get pre-approved for a mortgage. Work with a THDA-participating lender in the Tri-Cities area to get pre-approved for a Great Choice Home Loan with down payment assistance.
- Step 5:
Find a home within program price limits. Shop for homes within THDA purchase price limits for Sullivan County. At Kingsport's median price of $295,000, most homes fall well within typical program limits.
- Step 6:
Submit your application and close. Your lender will coordinate DPA funds from THDA and any additional assistance from the FTDD Consortium or The Housing Fund. Expect 30 to 60 days from contract to closing.