Tennessee Down Payment Assistance
Home to both beautiful national parks and beautiful music, Tennessee has something for everyone! However, rising real estate prices can make home ownership in Tennessee difficult. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Tennessee Housing Development Agency is one organization that offers such programs.
If you're thinking about purchasing a home in Tennessee, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!
First Time Home-Buyers Program
Through the Housing and Community Development Office of Clarksville, eligible applicants can receive down payment and closing cost assistance. Assistance is offered in the form of a second mortgage.
Down payment assistance can be forgiven as long as the applicant uses the house as their primary residence for a minimum of five years and one month. Closing cost assistance needs to be repaid if the property is sold or transferred.
Applicants must meet numerous requirements in order to be eligible for this program. One of these requirements is meeting specified income limits. Households must fall within 50% to 80% of the Area Median Limit in Clarksville. As of 2022, these numbers are:
- 1 person household: $21,350-$34,100
- 2 person household :$24,400-$39,000
- 3 person household: $27,450-$43,850
- 4 person household: $30,450-$48,700
- 5 person household: $32,900-$52,600
- 6 person household: $35,350-$56,500
- 7 person household: $37,800-$60,400
Only first-time homebuyers, displaced homemakers, and single parents are allowed to apply. Each of these has their own specific definitions: a first-time homebuyer is someone who has not owned a house in the past three years; displaced homemakers are those who previously owned a home with a spouse or lived in a home owned by a spouse; and single parents are unmarried individuals with minor children with full or joint custody.
Only single-family homes, townhouses and condominiums are allowed to be purchased using this program, and all properties must be located in Clarksville, Tennessee. Properties must be inspected and fulfill the City of Clarksville Housing Maintenance Code. Older properties (built in 1978 or before) must additionally be inspected for lead-based paint.
Offered through the Tennessee Housing Development Agency, Great Choice Plus allows applicants to access as much as 5% of the property price of a home as down payment and closing cost assistance. This is a second mortgage with 0% interest and deferred payment. The loan only has to be paid back if the property is sold or refinanced, or no longer servers as the applicant’s primary residence. However, in certain cases, the loan amount can be forgiven and does not need to be repaid.
Homebuyer education is required prior to approval for this program. Applicants also have to continue to comply with their first mortgage.
Great Choice Plus is offered to any qualified applicant who already has a Great Choice Home Loan. Applicants can be first time or repeat homebuyers, as well as military or veteran buyers. The minimum allowed credit score is 640, but if an applicant wants to improve their credit score or has trouble meeting this requirement, they can meet with a certified counselor who may be able to give them suggestions.
Applicants also have to fall within a specified household income amount and purchase price limits. These limits depend on both location and number of people in the household.
