Nashville, Tennessee · Updated July 2026
First-Time Homebuyer
Grants in Nashville, TN
Access up to $35,000+ in down payment assistance through city, state, and federal programs — including forgivable grants and 0% interest loans.
✓ Forgivable Grant Options
🏠 5 Programs Available
💰 0% Interest Options
✓ Verified City & State Programs
✓ Updated July 2026
✓ No Hidden Fees
Nashville first-time homebuyers can tap into a strong set of layered assistance programs. The Housing Fund offers up to $35,000 in deferred 0% loans for Davidson County buyers, while THDA’s Great Choice Plus provides up to $6,000 in forgivable assistance stacked on a competitive fixed-rate mortgage. Add NeighborhoodLIFT grants through Affordable Housing Resources and Nashville’s heroes-first rate discount, and qualified buyers can cover a substantial portion of their down payment and closing costs.
Nashville, TN First-Time Buyer Programs at a Glance
| Program | Max Benefit | Type | Level |
|---|---|---|---|
| The Housing Fund DPA | Up to $35,000 | Deferred 0% Loan | Local |
| AHR NeighborhoodLIFT | Up to $15,000 | Grant | Local |
| THDA Great Choice Home Loan | Below-market rate | Mortgage | State |
| THDA Great Choice Plus | Up to $6,000 | Forgivable DPA | State |
| THDA Homeownership for Heroes | 0.5% rate discount | Rate Reduction | State |
1. The Housing Fund — Down Payment Assistance
The Housing Fund is a Nashville-based nonprofit lender that provides one of the largest local DPA loans in Middle Tennessee — up to $35,000 for eligible buyers in Davidson County. The loan is deferred at 0% interest with no monthly payments, repayable only when you sell, refinance, or pay off the first mortgage. It’s designed for buyers who are income-qualified and purchasing a primary residence within the county.
Local Program0% Deferred
| Max Amount | Interest | Repayment |
|---|---|---|
| $35,000 | 0% | Deferred (at sale/refi) |
- Available to buyers in Davidson County purchasing a primary residence
- Income limits apply based on family size and AMI
- Must work with a Housing Fund-approved lender
- Requires homebuyer education through a HUD-approved provider
- Can be layered with THDA Great Choice for maximum benefit
2. Affordable Housing Resources — NeighborhoodLIFT Grant
Affordable Housing Resources (AHR), a Nashville HUD-approved housing counseling agency, administers NeighborhoodLIFT grants of up to $15,000 for eligible Nashville-Davidson County homebuyers. Unlike a loan, this is true grant money — no repayment required as long as you meet the program’s occupancy requirements. Funds are limited and released periodically, so buyers should inquire early.
Local ProgramTrue Grant
| Max Grant | Repayment | County |
|---|---|---|
| $15,000 | None (grant) | Davidson Co. |
- Grant requires no repayment — not a loan
- Household income must be at or below 80% AMI
- Must complete 8-hour HUD-approved homebuyer education course
- Contact AHR at (615) 251-0025 to check fund availability
- Funds are limited and distributed periodically — apply early
3. THDA Great Choice Home Loan
Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan: a 30-year fixed-rate mortgage at a below-market interest rate available statewide to income-eligible first-time buyers. It serves as the foundation for stacking additional DPA programs like Great Choice Plus. The rate is competitive and set by THDA monthly — check with a participating lender for the current rate.
State ProgramBelow-Market Rate
| Loan Type | Rate | Term |
|---|---|---|
| 30-yr Fixed | Below-market | 30 years |
- Available statewide to first-time buyers (or non-first-timers in targeted areas)
- Income limits apply by county and family size
- 640 minimum credit score required
- Works with FHA, VA, USDA, and Conventional loans
- Must be used with Great Choice Plus for DPA
4. THDA Great Choice Plus
Paired with the Great Choice Home Loan, Great Choice Plus provides down payment and closing cost assistance in two forms: up to $6,000 as a forgivable second loan (20% forgiven per year over 5 years if you remain in the home) or up to $15,000 as a deferred second lien at 0% interest repayable upon sale or refinance. The forgivable option is the better deal for most buyers who plan to stay long-term.
State ProgramForgivable Option
| Forgivable Option | Deferred Option | Forgiveness Period |
|---|---|---|
| Up to $6,000 | Up to $15,000 | 5 years (20%/yr) |
- Must be paired with a THDA Great Choice Home Loan
- Forgivable option: 20% forgiven each year over 5 years of occupancy
- Deferred option: 0% interest, repayable at sale or refinance
- Income and purchase price limits apply statewide
- Apply through a THDA-participating lender
5. THDA Homeownership for Heroes
THDA’s Homeownership for Heroes program gives qualifying veterans, active military, and first responders a 0.5% reduction on the Great Choice Home Loan interest rate. Over 30 years, even a half-point rate reduction saves thousands in total interest. Eligible professions include active-duty military, veterans with honorable discharge, law enforcement, firefighters, EMS, and emergency management personnel.
State ProgramRate Reduction
| Rate Benefit | Eligible Groups | Stackable With |
|---|---|---|
| 0.5% lower | 6 categories | Great Choice Plus |
- Veterans (honorable discharge) and active military
- Law enforcement officers, firefighters, and EMS personnel
- Emergency management personnel also qualify
- Can stack with Great Choice Plus DPA
- Contact a THDA-participating lender to apply
💡 Pro Tip: Stack The Housing Fund + THDA Great Choice Plus
Nashville’s biggest DPA move is combining The Housing Fund’s $35,000 deferred loan with THDA Great Choice Plus’s $6,000 forgivable grant on a Great Choice mortgage. That’s $41,000 in upfront help — with $6,000 completely disappearing over 5 years if you stay in the home. Work with a lender approved by both The Housing Fund and THDA, and complete your homebuyer education early since both programs require it before closing.
Frequently Asked Questions
Do I have to be a first-time buyer to use Nashville programs?
Most programs — including The Housing Fund, AHR NeighborhoodLIFT, and THDA Great Choice — require that you haven’t owned a home in the past 3 years. THDA’s definition of “first-time buyer” includes anyone buying in a federally designated targeted area, even if they’ve owned before. Check with your lender to confirm based on the specific property location.
What income limits apply?
The Housing Fund and NeighborhoodLIFT target buyers at or below 80% AMI (roughly $72,000–$77,000 for a family of four in Davidson County for 2026). THDA Great Choice programs have their own income limits set by county — typically somewhat higher. Consult a participating lender for the exact figures based on your household size.
Can I stack multiple programs?
Yes — The Housing Fund loan and THDA Great Choice Plus can be combined on one purchase. The key is finding a lender approved by both THDA and The Housing Fund, and allowing extra time for both approvals before your closing date. NeighborhoodLIFT funds must be confirmed available before contract.
Is the THDA Great Choice Plus grant or loan?
It depends on the option you choose. The forgivable version ($6,000 maximum) functions like a grant — 20% is forgiven each year you live in the home, so after 5 years it’s fully gone. The deferred version ($15,000 maximum) is a 0% loan repaid when you sell or refinance. Most buyers who plan to stay choose the forgivable option.
What credit score do I need?
THDA Great Choice requires a minimum 640 credit score. The Housing Fund and NeighborhoodLIFT do not publish hard minimums but require qualifying for a primary mortgage (FHA typically requires 580+). A higher score improves your rate and approval odds for all programs.
Your Next Steps
- Check your income eligibility — Compare your household income against 80% AMI for Davidson County (Housing Fund and NeighborhoodLIFT) and THDA county limits.
- Complete a HUD-approved homebuyer course — Required for all programs; contact AHR at (615) 251-0025 or find a THDA-approved course online.
- Contact AHR for NeighborhoodLIFT availability — Funds are limited; confirm availability before you write an offer.
- Find a participating lender — Look for a lender approved by both THDA and The Housing Fund to stack programs at closing.
- Get pre-qualified — Your lender will confirm which programs you qualify for based on income, credit, and loan type.
- Close on your home — THDA and Housing Fund assistance is applied at closing alongside your first mortgage.
Disclaimer: Grant amounts, income limits, and program availability change frequently. Always verify current terms directly with THDA (thda.org), The Housing Fund (housinghelptn.org), and Affordable Housing Resources (ahrhousinghelp.org) before applying. This page is for informational purposes only and does not constitute financial or legal advice.
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