If you've ever scrolled home listings and thought, "Someday, once we've saved enough," this one's for you.
The down payment is the number-one hurdle I see keeping renters from buying. But in a lot of cases, the real hurdle isn't money. It's not knowing what help exists. Let's fix that.
What is down payment assistance?
Down payment assistance (DPA) is money that helps homebuyers cover their down payment and, often, closing costs. It's offered by state and local governments, housing finance agencies and nonprofits. Here in Tennessee, that includes statewide options through the Tennessee Housing Development Agency (THDA), plus local and nonprofit programs.
And there's a lot of it. Down Payment Resource counted 2,746 homebuyer assistance programs nationwide as of July 1, 2026, up 67 from the quarter before. About 77% were active and funded.
The four types of assistance
Grants. Money you don't pay back. These make up about 9% of programs.
Forgivable second loans. A loan that's forgiven over time, as long as you live in the home for a set number of years.
Deferred second loans. No monthly payment. You repay it when you sell, refinance or pay off your first mortgage.
Repayable second loans. A low-rate second loan with a monthly payment. You still pay it back, but you need far less cash at closing.
Who qualifies? Probably more people than you think.
This is where most buyers count themselves out too early.
Income: 62% of programs serve buyers earning more than $100,000, and 11% have no income limit at all.
First-time buyers: 62% of programs are open to first-time buyers, and in many, "first-time" simply means you haven't owned a home in the past three years. So if you owned years ago, you may still count.
Property type: 80% of programs can be used on new construction, 40% on manufactured homes and 35% on two- to four-unit properties.
Your profession: 209 programs are designed for specific groups, including teachers, veterans, first responders, firefighters, active military and surviving spouses.
Know the fine print
Assistance is a great tool, but every program has rules. Common ones include:
Purchase price limits
A required homebuyer education course (usually short and often online)
Approved lenders and specific loan types only
Repayment if you move out or sell before a certain date
This is exactly why your lender matters. A lender who works with these programs regularly can tell you quickly what you qualify for and how to stack it with the right loan.
The bottom line
When it comes to buying a home, it's the payment that matters more than the rate. Assistance can lower what you need up front and make that monthly payment work for your budget sooner than you'd think.
If you're renting and wondering whether now could be your time, let's talk.
My lender partner and I will run a quick, no-pressure check to see which programs you could qualify for and what your monthly payment could look like.
How Much Down Payment Assistance Can You Get in Tennessee in 2026?
Do you have to be a first-time homebuyer to qualify for THDA assistance?
Can I buy a house in Tennessee with little or no money down?
Who wants this? → 🙋♀️ Call or text me, or send me an email and we'll get you started.
Kayla Gentry, Realtor
Rise Nashville Group | Real Broker
Program availability, terms and eligibility vary and can change. Talk with a qualified lender about your specific situation.
Preferred Lender
Shelley Beckworth | Mortgage Loan Originator
NMLS #1528490
Direct | (615) 403-4795
Email | yourhomegirlshelley@gmail.com
