Tennessee down payment assistance with THDA
Pick your Tennessee county, income and price: the THDA second loan that fits, what it costs each month, and the cash you still bring.
Help you may get in Davidson County
$15,000
THDA Great Choice Plus, amortizing option: monthly-payment loan, 30 years. 0 programs likely fit, 2 to check.
| Your income vs. area median for 3 people | 81% |
| HUD 80% income limit, 3 people | $83,650 |
| Down payment at 3.5% | $13,300 |
| Cash still needed with the help | $0 |
| Monthly payment, no help | $2,539 |
| Monthly payment, with the help | $2,643 |
| FHA limit · conforming limit | $1,029,250 · $1,029,250 |
Programs read on the Tennessee Housing Development Agency (THDA) pages; HUD FY 2026 limits; payment = principal and interest over 30 years at 7.4% (Freddie Mac, October 15, 2026). The approved lender confirms eligibility.
| Program | Fit | Amount | Form | Why |
|---|---|---|---|---|
| THDA Great Choice Plus, amortizing option | Check with the agency | $15,000 | Monthly-payment loan, 30 years | county income limit not transcribed: see the agency table; price limit by county: see the agency table |
| THDA Great Choice Plus, deferred option | Check with the agency | $10,000 | Forgivable loan, 10 years | county income limit not transcribed: see the agency table; price limit by county: see the agency table |
Prepared by Radif Partners · Method · updated: HUD 2026 limits effective May 1, 2026 · Freddie Mac rate of October 15, 2026 · programs read on October 21, 2026
The Tennessee Housing Development Agency (THDA) attaches its help to the Great Choice Home Loan, as a second mortgage called Great Choice Plus, in three versions. The deferred version lends up to $6,000 or up to $10,000 at 0% with no payment, forgiven at the end of a 10-year term, and due in full if you sell or refinance before then. The amortizing version lends up to 5% of the price, capped at $15,000, repaid over 30 years at the same rate as the first mortgage. A third version, for newly built or proposed homes, lends up to $25,000 at 0% over 15 years. All need a 640 credit score and THDA's county income and price limits. In Davidson County, a household of three earning $85,000 buying at $380,000 could take $15,000 for about $104 a month, or $10,000 with no payment.
Great Choice Plus, in THDA's words
| Program | Amount | Repayment (agency wording) | First-time only | Min. credit | Status |
|---|---|---|---|---|---|
| THDA Great Choice Plus, deferred option | up to $6,000 or up to $10,000 | 0% interest; forgiven at the end of a 10-year term; due in full if the home is sold or refinanced before then | depends | 640 | open |
| THDA Great Choice Plus, amortizing option | up to 5% of the sales price, maximum $15,000 | 30-year amortizing second mortgage at the same interest rate as the first mortgage | depends | 640 | open |
The two options split the same need in opposite ways. The deferred loan is small and free if you stay. The amortizing loan grows with the price up to $15,000, reached at a $300,000 home, and adds a second monthly payment at the first mortgage rate, currently near 7.4% on the market average. A buyer who can cover the gap with $10,000 should take the deferred one.
Middle Tennessee and Memphis, side by side
| County | HUD median (4 people) | HUD 80% limit (3 people) | FHA limit | Conforming limit |
|---|---|---|---|---|
| Davidson County | $116,100 | $83,650 | $1,029,250 | $1,029,250 |
| Shelby County | $92,700 | $66,750 | $541,287 | $832,750 |
| Knox County | $103,700 | $74,700 | $541,287 | $832,750 |
| Hamilton County | $97,400 | $70,150 | $541,287 | $832,750 |
| Rutherford County | $116,100 | $83,650 | $1,029,250 | $1,029,250 |
| Williamson County | $116,100 | $83,650 | $1,029,250 | $1,029,250 |
| Montgomery County | $93,800 | $67,550 | $541,287 | $832,750 |
| Sumner County | $116,100 | $83,650 | $1,029,250 | $1,029,250 |
| Wilson County | $116,100 | $83,650 | $1,029,250 | $1,029,250 |
| Sullivan County | $81,800 | $58,950 | $541,287 | $832,750 |
Nashville's growth shows in the numbers: Davidson County has a HUD median of $116,100 and an FHA limit of $1,029,250, while Shelby County sits at $92,700 and the FHA floor. THDA's own income and price limits are set by county and household size; we link them, and the calculator marks them to confirm while showing your income against the HUD median.
Your Tennessee county
Help you may get in Shelby County
$12,000
| Your income vs. area median for 3 people | 84% |
| HUD 80% income limit, 3 people | $66,750 |
| Down payment at 3.5% | $8,400 |
| Cash still needed with the help | $0 |
Davidson County, line by line
| Program | Result | Amount | Why |
|---|---|---|---|
| THDA Great Choice Plus, amortizing option | Check with the agency | $15,000 | county income limit not transcribed: see the agency table; price limit by county: see the agency table |
| THDA Great Choice Plus, deferred option | Check with the agency | $10,000 | county income limit not transcribed: see the agency table; price limit by county: see the agency table |
The FHA minimum here is $13,300. The amortizing loan covers it and leaves $1,700 for closing costs; the deferred loan leaves $3,300 of the down payment to find. In Shelby County, at $240,000, the amortizing loan is $12,000 for about $83 a month, and the deferred loan nearly matches the $8,400 minimum on its own.
Newly built homes
The new construction version raises the ceiling to $25,000 and keeps the rate at zero, so every payment of about $139 reduces the balance. It suits buyers of homes in new subdivisions around Nashville, Knoxville and Chattanooga, where a builder's price often exceeds what the smaller loans can bridge.
Applying in Tennessee
THDA lends through participating lenders and requires a homebuyer education course before closing. The help is reserved with the first mortgage; ask the lender to price the Great Choice loan with each option, because the first rate is the same but the total monthly payment is not. Bring the course certificate early, and keep the closing date: it starts the ten years that end the deferred loan.