Down payment assistance in Tennessee
Tennessee's primary statewide down payment assistance program, run by Tennessee Housing Development Agency (THDA). Numbers and eligibility reflect the program's published 2025 guidelines.
Great Choice Plus
Deferred loan- Maximum assistance
- Up to 6% of sale price as a 0% deferred second
- Income limit
- Up to $134,560
- Home price limit
- Up to $481,176
- First-time buyer
- Preferred (some products)
- Eligible loan types
- FHA, VA, USDA, Conventional
- •0% deferred - no monthly payment, repaid only on sale/refi/payoff.
- •Homeownership for Heroes program adds 0.5% rate discount for veterans, teachers, etc.
How Tennessee DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Tennessee's Great Choice Plus pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Tennessee's primary statewide DPA is Great Choice Plus from Tennessee Housing Development Agency (THDA). Up to 6% of sale price as a 0% deferred second. Many Tennessee cities and counties also run additional DPA layered on top.
Some product variants are first-time-buyer only; others are open to repeat buyers. Check the agency page for the current matrix.
Yes. Great Choice Plus works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.