You may need less than you think
The biggest myth in home buying is that you need 20 percent down. Many Middle Tennessee buyers put down far less, and first-time and moderate-income buyers often qualify for programs that reduce the upfront cost even further.
THDA: Tennessee’s housing agency
The Tennessee Housing Development Agency (THDA) runs programs designed to help Tennesseans become homeowners. Its Great Choice home loan program is paired with down-payment assistance options for eligible buyers. Details, income limits, and assistance amounts change over time, so the current specifics should come from a THDA-approved lender.
Federal loan programs
- FHA loans allow lower down payments and more flexible credit, popular with first-time buyers.
- VA loans offer eligible veterans and service members zero-down financing with strong terms.
- USDA loans support eligible buyers in qualifying rural areas, some just outside the metro, with no down payment.
How to find out what you qualify for
The programs stack and interact in ways that are hard to figure out on your own. The move is to talk to a lender who knows Tennessee programs, ideally a THDA-approved one, and let them run your specific numbers. Karla can connect you with trusted local lenders who do this every day.
Frequently asked questions
What is THDA?
THDA is the Tennessee Housing Development Agency. It offers Great Choice home loans and down-payment assistance to help eligible Tennesseans buy a home. A THDA-approved lender can confirm current eligibility and amounts.
Do I really need 20 percent down?
No. Many buyers put down far less, and first-time and moderate-income programs can lower the barrier further. Twenty percent avoids mortgage insurance but is not required.
Are there first-time home buyer programs in Tennessee?
Yes, through THDA and federal options like FHA, VA, and USDA. Eligibility varies, so a lender who knows Tennessee programs is the best source for your situation.
How do I know which program is right for me?
Talk to a lender, ideally a THDA-approved one, who can run your income, credit, and goals against current programs. Karla can point you to trusted local lenders.