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First-time home buyer programs in Alcoa, TN

Quick answer

First-time buyers in Alcoa, TN can use 3%-down conventional loans (up to the $832,750 Blount County conforming limit), 3.5%-down FHA, or VA and USDA where eligible, plus 2 verified city, county or statewide assistance programs. On the $232,300 median home, 3% down is about $6,969 and the estimated payment is $1,863/month at 7.18%.

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

Median household income: $60,049; value-to-income ratio 3.87. Alcoa ranks 41 by home value and 57 by population among 65 places in our TN dataset.

What does a first-time buyer loan cost on a typical Alcoa home?

ItemAlcoa
Median home value (Census ACS)$232,300
Tennessee median home value$256,800
Down payment (3%)$6,969
Loan amount$225,331
Estimated monthly payment (PITI + MI)$1,863
Income needed (28% / 36%)$80,000 / $63,000
Blount County 2026 conforming limit (1 unit)$832,750
Max purchase price at the limit$858,000

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

Payment includes Tennessee's 0.55% effective property tax rate (Census ACS), $1,649/yr homeowners insurance (NAIC state average) and an estimated 0.5% PMI.

What is the 2026 conforming loan limit in Alcoa?

Alcoa is in Blount County. Conventional 3%-down loans go up to the $832,750 conforming limit (price ≈ $858,000); FHA loans go up to $541,287.

The Alcoa median home value of $232,300 is 10% below the Tennessee median, and within what the county limit supports.

Which down payment assistance programs can Alcoa buyers use?

First-time buyer loans in nearby cities

MaryvilleKnoxvilleFarragutSeymourPowellLenoir City

First-time buyer loan FAQs for Alcoa

On the $232,300 median: 3% conventional ≈ $6,969, 3.5% FHA ≈ $8,131, and 0% for eligible VA or USDA buyers. Conventional loans above $832,750 in Blount County become jumbo loans.

At the $232,300 median value (below the Tennessee median of $256,800), the estimated payment of $1,863/month at 7.18% needs about $80,000 a year under the 28% housing guideline, or $63,000 if your total debts stay under 36%.

0 city-level, 0 county-level and 2 statewide programs are verified for this city (2 total). Check each official administrator's eligibility rules and available funds.

Sources

Data last updated October 23, 2026.

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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.