First Time Home Buyer

 Programs in Tennessee

Complete First Time Home Buyer Programs Available in Tennessee.

The state agency created by the legislature in Tennessee to offer first time home buyer programs is the Tennessee Housing Development Agency. Here is a summary of the current first time home buyer programs that are offered:

American Dream Down payment Initiative (ADDI)

THDA, working through Partner Agencies, anticipates helping 200 first-time home buyer families with $5,000 of down payment, closing cost and principal buy-down assistance. If you are a first-time home buyer and interested in obtaining down payment assistance, please review the ADDI Program Description, and choose and contact a Partner Agency which serves the county in which you would like to buy a home. When an eligible first-time homebuyer submits all the proper documentation through a THDA Partner Agency, ADDI funds may be reserved on a first-come/first served basis for up to 120 days. The amount of available ADDI funds will be tracked on the THDA web-site.

Great Rate Mortgage Program & Great Start Mortgage Program

The Great Rate Mortgage program offers a below market interest rate loan secured by a first mortgage. Great Start offers a loan at a slightly higher interest rate, secured by a first mortgage, but offers assistance with down payment and closing cost. Not every borrower is eligible for a THDA mortgage. Borrowers must have satisfactory credit and the home must meet certain conditions.

For complete details on these first time home buyer programs available to Tennessee residents, visit the Tennessee Housing Development Agency website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment. This will make it possible for many people to qualify for a first time home buyer loan who wouldn't have qualified without the grant assistance.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.