What Is Down Payment Assistance?

Down Payment Assistance (DPA) programs help homebuyers cover the upfront costs of purchasing a home — primarily the down payment and sometimes closing costs. These programs are offered by state housing agencies, local governments, and non-profit organizations. Tennessee has several active DPA programs, and CFC Mortgage is experienced in pairing them with FHA, USDA, VA, and conventional loans.

Tennessee DPA Programs

The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan program, which provides down payment assistance of up to 6% of the purchase price as a second mortgage. The Great Choice Plus program offers a forgivable second mortgage for qualifying buyers. Income and purchase price limits apply, and the home must be your primary residence.

Who Qualifies?

Most DPA programs are designed for first-time homebuyers (defined as not having owned a home in the past 3 years), though some programs are available to repeat buyers in targeted areas. Income limits, credit score minimums, and purchase price caps vary by program. CFC Mortgage will review all available programs and identify which ones you qualify for at no cost.

Key Benefits

• Up to 6% of purchase price in assistance (THDA programs)
• Forgivable second mortgage options available
• Can be combined with FHA, USDA, VA, and Conventional loans
• Available for first-time and repeat buyers (program-dependent)
• Covers down payment and sometimes closing costs
• No repayment required on forgivable grants after qualifying period
• CFC Mortgage identifies and applies all eligible programs for you