First-time homebuyer programs in Tennessee: everything you need to know

A huge part of what we do at House Haven Realty — and a huge part of why Stephen launched the Rent Less, Own More! initiative back in 2019 — is helping first-time Tennessee homebuyers get into their first home without the anxiety that usually comes with it. A lot of that anxiety is information asymmetry. Most first-time buyers have no idea how many state and federal programs exist, how they stack, or which ones they actually qualify for.

This guide is our cheat sheet. It is written for Middle Tennessee buyers, and we update it whenever program rules change. If you want to talk through your specific numbers, message us and one of our agents will walk you through it — no obligation, no sales pitch.

The flagship Tennessee first-time buyer program is the THDA (Tennessee Housing Development Agency) Great Choice Home Loan. It is a 30-year fixed-rate government-backed mortgage with income limits that vary by household size and county, and purchase price limits that adjust each year. Rates are typically a fraction of a percent below conventional market rates because THDA gets favorable pricing.

The biggest win is not the rate itself — it is what you can combine with it.

THDA layers a program called Great Choice Plus on top of the base loan. It provides up to a set dollar amount or a percentage of the sales price toward your downpayment and closing costs, in the form of a second mortgage that is forgivable over time if you stay in the home.

In practice, this means a lot of our Middle Tennessee first-time buyers close on a home with effectively zero out-of-pocket expense beyond earnest money and an inspection. On a $350,000 home that typically means bringing a few thousand dollars to closing instead of the twenty or thirty thousand they thought they needed.

THDA also runs Homeownership for the Brave, which is available to active-duty military, veterans, National Guard, and reservists. It is typically a lower interest rate on the Great Choice loan and has the same Great Choice Plus stacking option. If you served — even briefly — ask your lender about this before settling on a standard conventional loan.

FHA loans allow 3.5% down with more flexible credit. VA loans allow 0% down for qualified military. USDA Rural Development loans allow 0% down in eligible rural areas — and a surprising number of Middle Tennessee towns still qualify as "rural" for USDA purposes, including parts of Ashland City, Greenbrier, Pegram, and Dickson County. If you are open to a 30-45 minute commute, USDA can be transformative.

These can be combined with THDA Great Choice Plus in most cases, though the exact combination depends on underwriter guidelines. Your lender will guide you — if they do not know, get a different lender.

Not every lender in Tennessee is a THDA-approved originator. The list is public and changes periodically. Our strongest advice to every first-time buyer we work with is this: get two quotes, at least one of which should be from a lender who actively works with THDA and downpayment assistance programs. The difference between a lender who "can do" these programs and one who runs them every week is night and day.

We keep a short list of lenders we trust across Middle Tennessee and we are happy to share it — not a kickback arrangement, just lenders who consistently close these loans cleanly for our clients.

When Stephen started Rent Less, Own More! in 2019, the goal was simple: stop first-time buyers from feeling like they needed to be perfect before they could start. You do not need 20% down. You do not need a 780 credit score. You do not need to have read every personal-finance blog. You need a lender who knows these programs, a REALTOR® who knows the market, and a plan you understand.

We run first-time buyer workshops a few times a year and we are happy to do one-on-one walkthroughs any time. Send us a message and tell us your rough numbers — we will come back with a real, specific plan for how to get you into your first home.