THDA help for Tennessee buyers · As of 10-28-2026
Down payment help: the options, side by side
Great Choice Plus pairs a THDA first mortgage with down payment help. THDA lists three kinds, and they work differently. Here is what THDA's own page says, with the day we checked it.
Checked against THDA's own page text
- Down payment help of up to $6,000 or up to $10,000 is a forgivable 0% second mortgage over 10 years. It is due if the home is sold or refinanced earlier. As of 10-28-2026.
- Down payment help of 5% of the price, up to $15,000, is a 30-year loan that is paid down over time at the same rate as the first mortgage. As of 10-28-2026.
- Down payment help of up to $25,000 is available for new or proposed construction, as a 15-year 0% loan. As of 10-28-2026.
- Great Choice Plus and Homeownership Heroes need a THDA-approved homebuyer course. As of 10-28-2026.
In plain words: a general explanation, not a rule sheet. THDA's own pages decide.
Forgiven or paid back
The two forgivable amounts are a second mortgage that is forgiven over time if you keep the home. The 5% option and the new construction option are loans you pay back.
Which one may be worth asking about
It depends on the home, the price and whether it is new or proposed. The "Which down payment help" quiz walks through it one question at a time, and a THDA-approved lender confirms what applies.
The course comes first
Great Choice Plus needs a THDA-approved homebuyer course, so plan for it early. The homebuyer education page says more.
Other programs
A separate site, Down Payment Resource, lists other Tennessee programs. We name it and do not link it, and we do not vouch for it.
Down payment help, by option
THDA lists three kinds of down payment help. The bars show the most each one offers; the list underneath says how each one works. As of 10-28-2026.
Show the same facts as a list
| Option | The most it offers | How it works |
|---|---|---|
| Forgivable, up to $6,000 | $6,000 | A forgivable 0% second mortgage over 10 years; due if the home is sold or refinanced earlier. |
| Forgivable, up to $10,000 | $10,000 | A forgivable 0% second mortgage over 10 years; due if the home is sold or refinanced earlier. |
| 5% of the price, up to $15,000 | $15,000 | A 30-year loan paid down over time at the same rate as the first mortgage. |
| New or proposed construction, up to $25,000 | $25,000 | A 15-year 0% loan. |
What this page holds back
Any figure marked "As of" was checked at thda.org on that day. The price limit, the county income limits and other amounts are not printed here until a person has checked them. They change, and they depend on your county and household.
Limits vary by county and change. Ask a THDA-approved lender. THDA's own limits page.
Check where you stand
- Which down payment option fits? (4 questions, about 2 minutes)
- Cash-to-close gap (3 questions, about 2 minutes)
- New construction check (3 questions, about 2 minutes)
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