Every state has down payment or homeownership assistance programs; some states have both. The programs are designed to provide affordable housing opportunities to homebuyers who might not ordinarily be able to afford a house.
Each program can have their own income and eligibility requirements but primarily the programs are available for first-time homebuyers or low-income families.
Keep in mind if you had no ownership in a principal residence in the previous 3 years, you are also considered a first-time homebuyer even if you owned a home prior to that 3-year period.
The programs are not usually administered directly through the State. Instead, they are nonprofit based and handled through a third party agency. The list below will start you on your search but be sure to confirm the program is currently available.
Habitat for Humanity
HOME Program Contacts in Tennessee – contact the agency in your area for information on local homeownership assistance programs funded by HUD’s HOME Investment Partnerships Program
Housing Assistance Council
NeighborWorks – lists member organizations in Tennessee that provide assistance to homebuyers and homeowners
Other local homeownership assistance programs – additional programs serving specific local areas in Tennessee
Rebuilding Together is the nation’s leading nonprofit working to preserve affordable homeownership and revitalize communities. Our network of more than 200 affiliates provides free rehabilitation and critical repairs to the homes of low-income Americans.
Tennessee Association of Community Action – contact your local Community Action Agency for assistance programs that may help you attain housing goals, obtain counseling, seek weatherization assistance and emergency funding
Tennessee Housing Development Agency (THDA)
Homebuyer Education Tennessee Housing Development Agency
(THDA) maintains a list of trainers approved to teach homebuyers about a home. The information is provided by county. Homeownership Programs – THDA’s Homeownership programs are designed for low- and moderate-income borrowers. Some programs include downpayment assistance.
Housing Voucher to Homeownership – THDA offers a Housing Voucher – Section 8 – to Homeownership Program covering most counties in Tennessee. People who meet the guidelines may be able to use their Housing Vouchers to buy homes.