Down Payment Assistance in Tennessee, Georgia, or Alabama | Jai Williams AXEN Realty
Jai Williams is a licensed REALTOR® with active licensure in Tennessee, Georgia, and Alabama. She serves buyers, sellers, and relocating families across all three states and provides real estate guidance and referral connections for clients nationwide.
The down payment is the barrier that stops more qualified buyers from purchasing a home than any other factor. Tennessee has active programs designed specifically to reduce or eliminate that barrier for buyers who qualify. Understanding which programs apply to your situation is the first step toward closing on a home you may have thought was out of reach.
THDA Great Choice Home Loan
The Tennessee Housing Development Agency Great Choice Home Loan provides a 30-year fixed rate first mortgage at a below-market interest rate for qualifying first-time buyers and eligible veterans. It is the foundation of Tennessee’s primary down payment assistance structure.
THDA Great Choice Plus
Great Choice Plus layers a second mortgage on top of the Great Choice first mortgage to cover the down payment. The second mortgage provides up to 6% of the loan amount as a deferred, non-amortizing loan that does not require monthly payments. It is repaid when the property is sold, refinanced, or the first mortgage is paid off.
Eligibility for both programs is subject to income limits and purchase price caps that vary by county. The programs are available through THDA-approved lenders only. Jai provides a full review of current limits and connects buyers with approved lenders during a buyer consultation.
Other Down Payment Sources
Beyond THDA programs, Tennessee buyers may qualify for down payment assistance through local housing authorities, employer-assisted housing programs, and nonprofit down payment gift programs. Jai reviews all applicable sources during a buyer consultation based on the buyer’s specific income, location, and purchase target.
Heroes Down Payment Advantages
First responders, military and veteran buyers, healthcare workers, and teachers in Tennessee may qualify for additional savings through the Homes for Heroes program on top of any THDA benefit they receive.
Homes for Heroes Tennessee | First-time buyers Tennessee
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Yes. The THDA Great Choice Plus program provides up to 6% of the loan amount as down payment assistance for qualifying first-time buyers and eligible veterans in Tennessee. Eligibility is based on income limits and purchase price caps that vary by county. Jai reviews current eligibility requirements during a buyer consultation.
The THDA Great Choice Plus second mortgage is a deferred loan that does not require monthly payments. It is repaid when the property is sold, refinanced, or the first mortgage is paid off. It is not a grant, it must be repaid, but it carries no interest and requires no monthly payment during the period of ownership.
THDA programs have their own first mortgage requirement, which differs from a VA loan. VA loans and THDA programs generally cannot be combined on the same transaction because each requires its own first mortgage structure. However, VA loans require zero down payment, which eliminates the need for separate down payment assistance in most cases. Jai reviews the best available financing structure for each buyer’s situation.
THDA income limits vary by county and household size. In general, they are set at 80% to 115% of area median income depending on the county. Purchase price caps also vary. Jai reviews current THDA program limits and confirms eligibility during a buyer consultation before the buyer applies with a lender.