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First-Time Buyer loans in Tennessee

Quick answer

First-time buyers in Tennessee can use FHA (3.5% down), conventional 97 (3% down), VA or USDA loans, plus programs from Tennessee Housing Development Agency (THDA). On a $256,800 home, 3% down is about $7,704.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

First-Time Buyer loan snapshot for Tennessee

ItemEstimate
Minimum down payment0%–3.5%
Minimum credit score580–620
Typical TN home value$256,800
3.5% down on typical home$8,988
20% down on typical home$51,360
Avg. effective property tax0.55%/yr (~$117/mo)
Income for typical home (31% rule)$78,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Tennessee programs pair with First-Time Buyer loans?

  • Great Choice Home Loan: A fixed-rate first mortgage for buyers within income and price limits.
  • Great Choice Plus: Down payment assistance as a deferred or amortizing second loan.

Details and current limits: Tennessee Housing Development Agency (THDA).

Compare first-time buyer loan options

LoanMin. downMin. creditMortgage insurance
FHA3.5%5801.75% upfront + annual MIP
Conventional 97 / HomeReady / Home Possible3%620PMI, removable
VA0%Lender-set (~580–620)None (funding fee)
USDA0%~6401% upfront + 0.35% annual

Who counts as a first-time home buyer?

Under HUD and most agency definitions, you're a first-time buyer if you haven't owned a principal residence in the last three years. Single parents and displaced homemakers who only owned with a former spouse may also qualify.

First-Time Buyer loans in Tennessee cities

First-Time Buyer in NashvilleFirst-Time Buyer in MemphisFirst-Time Buyer in KnoxvilleFirst-Time Buyer in ChattanoogaFirst-Time Buyer in ClarksvilleFirst-Time Buyer in MurfreesboroFirst-Time Buyer in FranklinFirst-Time Buyer in Johnson CityFirst-Time Buyer in JacksonFirst-Time Buyer in HendersonvilleFirst-Time Buyer in BartlettFirst-Time Buyer in KingsportFirst-Time Buyer in SmyrnaFirst-Time Buyer in Spring HillFirst-Time Buyer in ColliervilleFirst-Time Buyer in ClevelandFirst-Time Buyer in GallatinFirst-Time Buyer in BrentwoodFirst-Time Buyer in ColumbiaFirst-Time Buyer in LebanonFirst-Time Buyer in Mount JulietFirst-Time Buyer in GermantownFirst-Time Buyer in La VergneFirst-Time Buyer in CookevilleFirst-Time Buyer in MaryvilleFirst-Time Buyer in Oak RidgeFirst-Time Buyer in MorristownFirst-Time Buyer in BristolFirst-Time Buyer in FarragutFirst-Time Buyer in ShelbyvilleFirst-Time Buyer in East RidgeFirst-Time Buyer in TullahomaFirst-Time Buyer in SpringfieldFirst-Time Buyer in SeviervilleFirst-Time Buyer in GoodlettsvilleFirst-Time Buyer in DicksonFirst-Time Buyer in DyersburgFirst-Time Buyer in SeymourFirst-Time Buyer in GreenevilleFirst-Time Buyer in ArlingtonFirst-Time Buyer in NolensvilleFirst-Time Buyer in ElizabethtonFirst-Time Buyer in AthensFirst-Time Buyer in LakelandFirst-Time Buyer in White HouseFirst-Time Buyer in McMinnvilleFirst-Time Buyer in PowellFirst-Time Buyer in PortlandFirst-Time Buyer in Soddy-DaisyFirst-Time Buyer in ManchesterFirst-Time Buyer in LewisburgFirst-Time Buyer in CrossvilleFirst-Time Buyer in Red BankFirst-Time Buyer in Middle ValleyFirst-Time Buyer in Hartsville/Trousdale CountyFirst-Time Buyer in LawrenceburgFirst-Time Buyer in AlcoaFirst-Time Buyer in CollegedaleFirst-Time Buyer in MillingtonFirst-Time Buyer in Union City

Frequently asked questions

Yes. First-Time Buyer loans are available statewide in Tennessee through approved lenders, subject to county loan limits where they apply.

Often yes. Tennessee Housing Development Agency (THDA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.