Homebuyer Programs in Nashville, TN (2026)
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.
Top Homebuyer Programs in Nashville
| 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 → |
| 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 → |
| 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 → |
| 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:
- 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:
- Grant
- Amount:
- Up to $15,000
- 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 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.