Down Payment Assistance Programs in Tennessee: What Chattanooga Residents Need to Know


For most first-time buyers, the biggest thing standing between them and a home isn't their monthly budget. It's the cash needed up front. The down payment and closing costs can feel like a wall, and rightfully so. A house down payment is the standard in the lending industry, and it can quickly become a barrier to entry when trying to save up for that 20 percent number.


Here's what a lot of Chattanoogans don't realize: you may need far less than you think for a down payment, and there are real programs built to help cover that up-front cost, both statewide and right here at home. Let's walk through what's available and how to use it.

First, what is down payment assistance?

Down payment assistance (DPA) is help covering your down payment and, often, your closing costs. It usually comes as a second loan alongside your main mortgage. Some of these are deferred, meaning you make no monthly payments and may not owe anything unless you sell or refinance. Some are even forgiven over time. Others are repaid monthly at a low rate. The right one depends on your situation, which is exactly the kind of thing a good lender helps you sort out.

Statewide help: the Tennessee Housing Development Agency (THDA)

Tennessee's main source of homebuyer help is THDA. It doesn't lend to homebuyers directly. Instead, it offers below-market mortgages paired with down payment assistance through approved local lenders.


Its flagship is the Great Choice Home Loan, a 30-year fixed-rate mortgage. Pair it with Great Choice Plus, THDA's down payment assistance, and you have two options to choose from:



  • A deferred, forgivable option at 0% interest with no monthly payment, forgiven over time as long as you stay in the home.
  • An amortizing option that lets you borrow a larger amount, repaid monthly at the same rate as your first mortgage.


THDA also offers Homeownership for the Brave, a reduced-rate option for military members, veterans, and first responders. One requirement worth knowing up front: THDA down payment assistance requires completing a homebuyer education class, which is something CNE provides.


Exact amounts, income limits, and purchase-price limits vary by county and household size, and THDA updates them periodically. Rather than chase a number that may be out of date by the time you apply, confirm the current figures with a THDA-approved lender.


Source: Tennessee Housing Development Agency. CNE shares this as general information; program terms are set by THDA.

Local help: what CNE offers Chattanooga buyers

Here's where being local matters. CNE is a Chattanooga nonprofit that has helped more than 3,400 residents buy their first home, and we bring the pieces together in one place: homebuyer education, down payment assistance, and access to a range of loan products.


CNE offers its own down payment assistance to help qualified buyers cover up-front costs, and we can help you tap statewide programs like THDA's at the same time. We're also excited about a brand-new down payment assistance program offered in partnership with RockPoint Bank, worth asking us about if you're getting started now.


The advantage of working with a local team is simple: instead of guessing which program fits, you sit down with people who know all of them and can match you to the right combination.

Before you apply: a few things to know

  • Check your credit score first. There's no magic number, but 640 or above generally opens the widest range of options. Below that, CNE's free financial coaching can help you build a plan to get there.
  • “First-time buyer” is broader than it sounds. For many programs, it simply means you haven't owned a home in the past three years.
  • Income and price limits apply. These vary by county and household size, so a quick conversation is the fastest way to know where you stand.
  • Plan for the education class. It's required for most assistance programs, and it's genuinely useful. CNE offers it.

How to get started

You don't have to figure out which program is right on your own. That's the whole point of working with CNE. Reach out, tell us where you are, and we'll help you understand what you qualify for and map the next step, with no pressure.

By Chelsea Smith • October 16, 2026
On September 17th, the stories of Oak Grove residents were featured at the Hispanic HeritageMonth celebration at the Chattanooga Arts Theater. A video showing portions of the storiesfrom our August showcase was presented to the audience as part of the evening's program. Itwas meaningful to see the work these residents did with Jason Tinney of Cast Iron Storytellingreach a much larger audience only a few weeks after they first shared it with their ownneighbors.  The event was a wonderful celebration of connectivity and community. Families and residentsfrom across Chattanooga gathered to celebrate heritage and culture, and Oak Grove wasrepresented through the voices of the people who live there. That is at the heart of our work atChattanooga Neighborhood Enterprise. We are grateful to the organizers for including OakGrove in the celebration, and to our storytellers, whose willingness to share their experiencescontinues to open doors for their community.
By Chelsea Smith • October 16, 2026
On August 14, we welcomed 40 volunteers from the Bryan College soccer team to Oak Grove for our Rock the Porch event. Together, volunteers worked on six neighborhood homes, helping with porch painting, small repairs, landscaping, and other improvements that gave each property a little extra love. And it was HOT! But even with the summer heat, the team's energy, dedication, and willingness to serve never wavered. They showed up ready to work and stayed committed throughout the day. Rock the Porch is about showing up for our neighbors, building relationships, and creating opportunities for people to connect with the Oak Grove community. A special thank you to the Bryan College Womens soccer team and to everyone who helped make the day possible. We appreciate every person who gave their time, energy, and support and connected with our neighborhood through this project. 6 homes. 39 volunteers. One community coming together
By Chelsea Smith • October 16, 2026
On August 31st, six Oak Grove residents stood up in front of their neighbors and told theirstories. That night was the showcase for the Oak Grove Storytelling Workshops, and it was oneof the proudest moments we have had in this neighborhood. Over a series of three workshopswith Jason Tinney of Cast Iron Storytelling, in collaboration with Next Exit Productions and withsupport from ArtsBuild, these residents shared memories, shaped them into stories, and foundthe courage to bring them to a stage. The free performance filled the room with neighbors,families, and community partners, and the stories they heard were about Oak Grove itself: thefamilies who have been here for generations, the newcomers who chose to make it home, andthe everyday moments that make this community what it is.  At Chattanooga Neighborhood Enterprise, we have worked alongside Oak Grove residents foryears through direct outreach, neighborhood meetings, and the development of the Oak GroveNeighborhood Plan, and we believe a strong neighborhood is about more than housing. It isabout the pride people feel in the place they call home. Oak Grove is one of the most diverseneighborhoods in Chattanooga, and its residents deserve to see themselves reflected in it. Thisshowcase was only phase one. The stories shared on August 31st will now be turned intopermanent wayfinding signage and public art throughout the neighborhood, designed by a localartist chosen with community input. To the six residents who trusted us with their stories, andto everyone who came out to listen: thank you. Oak Grove, this was for you.
By Chelsea Smith • October 16, 2026
We had an incredible group of 40 volunteers from the Bryan College Men’s Soccer Team join us in Ridgedaleto help complete our 2026 Community Impact Measurement Survey. The day started with a training session at Redbud, right in the heart of the neighborhood. A special thankyou to Redbud for opening your doors and giving us a space to gather, train, and get everyone ready for theday. After training, the team hit the streets and surveyed the entire Ridgedale neighborhood twice. And whenwe say it was hot, it was HOT! Even in the blazing summer heat, these guys kept going. Their energy,teamwork, and dedication never wavered. The information collected through this survey will help us better understand where we are today and wherewe are going. It gives us another way to measure neighborhood conditions, identify needs, track progress,and make better decisions about where resources and investments can have the greatest impact for theneighborhoods we serve. This was a big undertaking, and we truly could not have done it without these guys.  A huge thank you to the Bryan College Men’s Soccer Team, Redbud, and everyone who helped make thiswork possible. Your time and effort helped us accomplish something that will continue to supportRidgedale long after survey day.
By Chelsea Smith • October 16, 2026
Full Circle is a reentry mentoring program that creates a healthy, supportive community around people as they return home and rebuild their lives. We pair participants with volunteer mentors and bring everyone together regularly, creating a community of people who encourage one another, believe in one another, and genuinely want to see each other succeed. Community agencies are an important part of that circle too, and having CNE spend time with our group and share practical information on housing and neighborhood resources is a great example of what Full Circle is all about.
By Chelsea Smith • October 16, 2026
On July 25, 2026, the Back to School Bash at the Park brought together a wonderful cross-collaboration of community partners, including Green Spaces, Rotary Clubs, Restoration Vineyard Church, and the CNE Oak Grove neighborhood. Together, the group gave out more than 150 backpacks and fed over 180 individuals, helping families get ready for the new school year. We would also like to thank Cricket Wireless for their support of the event, and we were honored to have local elected officials Councilwoman Marvene Noel and Commissioner Joe Graham in attendance. Events like this highlight the power of partnership and shared purpose across our community. We are so thankful for the hard work of everyone involved and for the impact this event had on the families and students it served.
By Chelsea Smith • October 16, 2026
On July 21, 2026, CNE visited members of the Rotary Club as they hosted their Back to School Bash stuffing party, an event dedicated to preparing backpacks and supplies ahead of the upcoming school year. The visit gave CNE the opportunity to see firsthand the care and organization the Rotary Club members put into supporting local students and families.
By Chelsea Smith • October 16, 2026
On Saturday, August 8th, more than 60 volunteers gathered at Restoration Vineyard Church in Oak Grove for the 2nd Annual Meal Packathon. Volunteers of all ages participated, working together across the packing stations throughout the event. The turnout reflected strong continued support for the initiative and its mission.  The event exceeded expectations, with volunteers packing over 11,000 meals, surpassing last year's total. Oak Grove is proud to have so many caring individuals who donated their time to pack meals for those in need.
By Chelsea Smith • August 12, 2026
Over the course of a recent two-week T-Term internship, McCallie High School students Joseph and Jerome had the opportunity to shadow CNE's William Larios, Bilingual Community Organizer, and Grecia Morales, Happy Neighborhoods Manager.  From community meetings to behind-the-scenes planning, Joseph and Jerome got a firsthand look at what it really takes to build a stronger, more connected Chattanooga.
By Chelsea Smith • August 12, 2026
Action leads to change! During a recent Illuminate Oak Grove event, volunteers came together to identify more than 40 streetlights in need of maintenance across 10 neighborhood routes — a hands-on effort aimed at making Oak Grove safer and brighter for everyone who calls it home.
Show More