Down Payment Assistance

To help limited-income buyers access the dream of homeownership, The Housing Fund offers an affordable Down Payment Assistance loan product throughout Tennessee.

Homeownership is Possible

The Housing Fund provides affordable loans of up to $35,000 for down payment, prepaids, and closing costs to individuals and families. If you meet the criteria for eligibility, we can help you reach your goal of successful homeownership.

How Do I Qualify?

Eligible buyers must meet the following criteria in order to qualify for Down Payment Assistance from The Housing Fund:

The home being purchased must be the buyer’s primary residence.
The buyer should be approved with a first-mortgage lender, and that lender must be FHA-approved in Tennessee.
Homebuyer Education, provided by a THDA-certified counselor, must be completed prior to closing (Click here for a list of certified counselors).

The Housing Fund also allows Online Homebuyer Education through eHome America when combined with a 1-hour, One-on-One counseling session for all clients using our Down Payment Assistance loan.
Click here for online Homebuyer Education instructions.

For credit standards and underwriting guidelines, see the Underwriting Checklist.

What People Say

The Housing Fund’s Consumer Lending Team was a pleasure to work with. Their Senior Mortgage Advisor provided a lot of useful information and helpful tips to me, as a first-time homebuyer. Service was professional, efficient, and great communication Thanks to The Housing Fund, I am now a homeowner and I could not be happier! I cannot say thank-you enough and am very grateful for all Candice has done!

The Housing Fund's Senior Mortgage Advisor was like a breath of fresh air! So polite, welcoming, and knowledgeable about the homebuying process with a lot of valuable information provided. With all the nervousness I went through with the homebuying process, my conversation with THF's staff definitely helped put me at ease.

The Housing Fund's Senior Mortgage Advisor was knowledgeable and efficient about the entire homebuying process. My husband and I received very valuable information to set us up for continued success. We felt welcome and comfortable about reaching out if we had any further questions or needs. We will definitely utilize the valuable resources offered by The Housing Fund: Thanks for the great customer service!

The Housing Fund’s senior mortgage advisor was EXTREMELY helpful to me as I was in the process of becoming a first-time homeowner. I was provided with a lot of homeowner advice, help with my homebuyer education, as well as explanations for documents that I would sign at the time of closing. I will most definitely stay in contact after closing.

How Do I Apply?

Once you are approved by a first-mortgage lender (who must be FHA-approved in Tennessee), you will notify them that you would like to connect with The Housing Fund for down-payment assistance. Next, you will fill out a THF application and give it to your first-mortgage lender. They will then send the packet of information about your loan, including your application, to THF. The list of documents needed from first-mortgage lenders can be found here in the underwriting checklist.

Income Requirements by County

The U.S. Department of Housing and Urban Development (HUD) publishes Area Median Income guidelines by Tennessee County. The Housing Fund’s Down Payment Assistance and Shared Equity programs serve up to 120% AMI, while our Community Land Trust program only serves clients at or below 80% of the Nashville-Davidson MSA’s AMI. Find income-eligibility guidelines for your county here.

Frequently Asked Questions

Does THF Have a Minimum Credit Score?

For loan requests under $10,000, the minimum credit score is 600. For loan requests between $10,000 and $35,000, the minimum credit score guideline is 620. However we encourage those with lower scores to still apply, as we may be able to recommend specific actions that can be taken to improve credit scores in order to meet THF’s credit requirements.

How Do I Apply for Down Payment Assistance?

Once you are approved by a first mortgage lender (who must be FHA-approved in Tennessee), you will notify them that you would like to use THF for down payment assistance. Next, you will fill out a THF application and give it to your first-mortgage lender. They will then send the packet of information about your loan, including your completed application, to THF. The list of documents needed from first-mortgage lenders can be found here in the underwriting checklist.

Do You Have a List of Approved Lenders?

Any lender that is FHA-approved in the state of Tennessee can use THF’s down payment assistance program, in addition to our investing partners.

How Long Will the Application Process Take?

Once the application and ALL of the required supporting documentation is received from the first-mortgage lender, THF needs 5-7 business days to complete the underwriting process. If the client’s packet of information is incomplete, the process can take longer.

Do I Have to Be a First Time Homebuyer?

No.

How Do I Know If I Am Eligible?

A first-mortgage lender will verify whether a client meets The Housing Fund’s underwriting criteria to qualify for Down Payment Assistance and/or closing-cost loans. For more information, please review this form.

Where is The Housing Fund's DPA program offered?

The Housing Fund works with first-mortgage lenders to provide DPA loans to clients statewide, throughout Tennessee.

What Are the Interest Rates for DPA Loans?

The Housing Fund is currently offering a promotional interest rate on its Down Payment Assistance loan product, currently a 5% Fixed Rate for all income tiers until further notice.

Does THF Provide Grants for Down Payment Assistance?

No. All of The Housing Fund’s DPA loans must be paid back.

Do You Provide First Mortgages for Homeowners?

No. The Housing Fund can provide up to $35,000 in down-payment assistance to qualified borrowers who receive first-mortgage financing from a Tennessee-approved and FHA-approved lender.