Down Payment Assistance Programs Can Help Pave the Way to Homeownership - Tennessee Real Estate Listings (2024)

FAQs

Does Tennessee have down payment assistance programs? ›

Homeownership Programs - THDA's Homeownership programs are designed for low- and moderate-income borrowers. Some programs include downpayment assistance. THDA Homeownership Voucher Program - THDA offers a Housing Voucher (Section 8) to Homeownership Program covering most counties in Tennessee.

The Tennessee Down Payment Partnership program also provides first-time home buyers with their down payment or closing costs in the form of deferred loans. These loans are due on sale and will only be repaid when the property is sold; the repaid down payment will then be made available for another first-time homebuyer.

Welcome Home funds may be used to fund reasonable down payment and closing costs. Welcome Home grants may not exceed $25,000 for honorably discharged veterans, active-duty military, reservists, and surviving spouses of service personnel homebuyers or $20,000 for all other homebuyers.

THDA administers its Program in 72 of 95 Tennessee counties. The purpose of the Program is to enable eligible low-income households to obtain decent, safe and sanitary housing by the PHA paying a portion of rental costs (including utilities) directly to a landlord in the private rental market.

You don't need to put 20 percent down to get a mortgage — some mortgages don't even require a down payment. You can get a conventional mortgage with 3 percent down, but with anything less than 20 percent, you'll have to pay mortgage insurance. Making a larger down payment can get you a lower interest rate.

In Tennessee, buyers can generally expect closing costs to be around 5% of the home's purchase price. This percentage encompasses a range of fees, including but not limited to, loan origination fees, appraisal fees, title insurance, escrow fees, and prepaid items such as property taxes and homeowners insurance.

A down payment is an initial payment of a portion of a purchase price, paid by a buyer to a seller upon the execution of a sale agreement (note: agreement and contract are synonymous for purposes of this definition).

The Tennessee Reconnect Grant is a last-dollar grant that pays the remaining balance of tuition and mandatory fees after other state and federal financial aid have been applied.

What is Tennessee Block Grant? ›

The Social Services Block Grant (SSBG) program in Tennessee provides funding for Adult Homemaker Services and Adult Day Care services.

The Housing Choice Voucher Program (HCVP), also known as Section 8, is a federally funded program that provides assistance to eligible very low-income families, the elderly and the disabled, to rent housing in the private market.

The median sale price of a starter home in Nashville is $315,000. In order to afford this, first-time homebuyers in Nashville should make $98,314 per year, up 7% from 2023.

If you bring the national average down payment of 6% to closing and have a 7.69% rate on a 30-year fixed mortgage, that's just shy of $1,700 a month in principal and interest. What does $1,500 buy with those same terms? About $225,000 worth of house, give or take.

How little can a down payment be? “Well, $3,000 is not enough for a down payment on most houses,” says Jill Gonzalez, an analyst with WalletHub. “The lowest percentage of down payment required is 3.5% for an FHA loan.

LEAP is the acronym for Lottery for Education: Afterschool Programs. In order to sustain funding, students are strongly encouraged to attend at least 30 days throughout the school year.

The Tennessee Reconnect Grant is a last-dollar grant that pays the remaining balance of tuition and mandatory fees after other state and federal financial aid have been applied.

The state-funded RAFT program is a tool used by the HCEC team to provide eligible households or individuals funding that can be used to help keep their housing, obtain new housing, or otherwise avoid becoming homeless.

Each first-time homebuyer program in Tennessee has a different set of qualifications. In general, however, there are income and maximum home price limits, both of which vary by county. A minimum credit score of 640 is necessary for most programs, though it drops to 620 for New Start loans.