How much down payment assistance can I get in Nashville?

Nashville buyers can access multiple layers of assistance. The THDA Great Choice Plus deferred option provides $6,000 as a forgivable second mortgage, or the amortizing option offers up to $15,000 (5% of purchase price). The Housing Fund offers additional loans up to $35,000 for down payment, prepaids, and closing costs. The Affordable Housing Resources NeighborhoodLIFT program provides up to $15,000 as a grant. By stacking eligible programs, Nashville buyers could potentially receive over $50,000 in total assistance.

Do I have to be a first-time homebuyer to qualify?

For THDA Great Choice programs, you generally must be a first-time buyer (no homeownership in the past 3 years), unless you are a veteran, active military, first responder, or buying in a targeted area. The Housing Fund programs are available to first-time buyers. The NeighborhoodLIFT program through Affordable Housing Resources is open to both first-time and repeat buyers.

What is the maximum home price I can pay in Nashville?

THDA purchase price limits for Davidson County vary and are updated periodically. Check GreatChoiceTN.com for the most current limits. The Housing Fund does not impose a specific purchase price limit but requires that the home be the buyer's primary residence and that the buyer qualifies based on income.

What homebuyer education is required?

All THDA programs require completion of a homebuyer education course from a THDA-certified counselor. In Nashville, Woodbine Community Organization offers a free 8-hour Fast Track course that satisfies requirements for THDA, The Housing Fund, and other programs. Affordable Housing Resources also provides housing counseling services. Call Woodbine at 615-833-9580 to register.

What credit score do I need to buy a home in Nashville with assistance?

THDA Great Choice programs require a minimum credit score of 640 for all borrowers on the loan application. The Housing Fund requires a minimum score of 600 for loan requests under $10,000, or 620 for requests between $10,000 and $35,000. Habitat for Humanity of Greater Nashville requires a minimum FICO score of 600.

Are there programs for veterans and first responders in Nashville?

Yes. The THDA Homeownership for Heroes program offers a 0.5% reduced interest rate and waives the first-time buyer requirement for active duty military, National Guard members, veterans, law enforcement officers, paramedics, EMTs, and firefighters. Eligible borrowers can also receive up to $15,000 in down payment assistance and may borrow up to 100% of the purchase price with a VA or USDA loan.

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By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026

Homebuyer Programs in Nashville, TN (2026)

Population: 713,000 | Median home price: $475,000 | Est. closing costs: $9,500 - $14,500

Nashville, Tennessee's capital and largest city, is a booming metro in Davidson County with a median home price around $475,000. Homebuyers in Nashville can access significant assistance through multiple programs, including the THDA Great Choice Plus program offering up to $6,000 as a forgivable loan or up to $15,000 as a repayable loan, The Housing Fund's down payment assistance loans of up to $35,000, and the Affordable Housing Resources NeighborhoodLIFT program providing up to $15,000 in grant assistance. Veterans and first responders can benefit from the THDA Homeownership for Heroes program with a 0.5% reduced interest rate. By combining state and local programs, Nashville buyers could potentially stack over $50,000 in total assistance toward their home purchase.

State Programs in Tennessee

Program Name	Type	Amount	First-Time Only	Details
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 →

THDA Great Choice Home Loan

Type:: Government-Insured Mortgage
Amount:: 30-year fixed-rate mortgage at below-market interest rates
First-time only:: Yes

THDA Great Choice Plus - Amortizing Option

Type:: Repayable Loan
Amount:: Up to 5% of the purchase price, maximum $15,000
First-time only:: Yes

THDA Great Choice Plus - Deferred Option

Type:: Forgivable Loan
Amount:: $6,000 forgivable second mortgage
First-time only:: Yes

THDA Homeownership for Heroes

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

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 →

FHA Loans

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

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

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

HomeReady Mortgage (Fannie Mae)

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

HUD $100 Down Program

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

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

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
AHR NeighborhoodLIFT Program	Grant	Up to $15,000	No	View →
Habitat for Humanity of Greater Nashville 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 →

AHR NeighborhoodLIFT Program

Type:: Grant
Amount:: Up to $15,000
First-time only:: No

Habitat for Humanity of Greater Nashville Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with zero-interest mortgage
First-time only:: Yes

The Housing Fund Down Payment Assistance

Type:: Repayable Loan
Amount:: Up to $35,000
First-time only:: Yes

How to Apply

Step 1: Check your eligibility. Review income limits for Davidson County, which vary by household size. THDA programs require household income below county-specific limits, while The Housing Fund serves buyers up to 120% of the area median income.

Step 2: Complete homebuyer education. Woodbine Community Organization offers a free 8-hour Fast Track homebuyer education course in Nashville that satisfies requirements for THDA, The Housing Fund, and other assistance programs. Call 615-833-9580 to register.

Step 3: Get pre-approved for a mortgage. Contact a THDA-approved lender to apply for a Great Choice Home Loan with down payment assistance. A minimum credit score of 640 is required for THDA programs.

Step 4: Apply for additional local assistance. Contact The Housing Fund at their Madison, TN office for loans up to $35,000 for down payment and closing costs. Your first-mortgage lender must be FHA-approved in Tennessee. Minimum credit score is 600 for loans under $10,000 or 620 for loans up to $35,000.

Step 5: Explore the NeighborhoodLIFT program. Contact Affordable Housing Resources at (615) 251-0025 to learn about up to $15,000 in grant assistance for Nashville-Davidson County homebuyers.

Step 6: Find a home within program limits. Work with your real estate agent to find a home that meets THDA purchase price limits for Davidson County.

Step 7: Submit your applications and close. Your lender will coordinate with THDA and any local assistance programs. Allow 30-45 days for processing.

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