First-Time Home Buyer Programs in Nashville, TN
Nashville runs a named local FTHB program (MDHA Homebuyer Assistance (Nashville)) that layers on top of the state flagship — first-time buyers here regularly stack both plus a federal loan. Median first-time buyer purchase price in the Nashville-Davidson-Murfreesboro area is around $365,000.
MDHA Homebuyer Assistance (Nashville)
MDHA Homebuyer Assistance (Nashville) is a Nashville-specific program that layers on top of THDA's state flagship (THDA Great Choice Home Loan) and federal FHA/VA/USDA loans. Terms, income caps, and funding cycles change each fiscal year — verify current details before applying.
How first-time homebuyer programs work in Nashville
Nashville first-time buyers assemble their financing from three layers. The state flagship — THDA Great Choice Home Loan from THDA — pairs a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien. Federal programs (FHA at 3.5% down, VA at 0% for eligible veterans, USDA for qualifying outer-ring Nashville-Davidson-Murfreesboro ZIPs) layer underneath.
On top of that, Nashville runs MDHA Homebuyer Assistance (Nashville) — a local program with ZIP or income restrictions that often delivers the largest per-buyer totals in the Nashville-Davidson-Murfreesboro area. Combined, Nashville buyers regularly stack all three.
Eligibility hinges on three inputs: credit score, household income relative to program caps that vary by county in TN, and purchase price. Completing a HUD-approved homebuyer education course is required before closing.
How to qualify: Nashville first-time buyer steps
- 1
Check your credit for Nashville program eligibility
Most Tennessee first-time buyer programs require typically 620–640 for conventional, 580 for FHA. Pull your score for free with a soft inquiry.
- 2
Confirm first-time buyer status
THDA defines "first-time buyer" as not owning a principal residence in the past three years. Some Nashville targeted ZIPs waive this rule.
- 3
Take a HUD-approved homebuyer education course
Most TN programs require an approved homebuyer education course before closing. Most run 6–8 hours online.
- 4
Apply through a participating Nashville lender
MDHA Homebuyer Assistance (Nashville) is originated by participating lenders in the Nashville-Davidson-Murfreesboro area, not directly by the program agency. Your loan officer submits the DPA package alongside your main mortgage.
- 5
Close on your Nashville home
First mortgage funds and DPA come to closing together. Median first-time buyer purchase price in the Nashville-Davidson-Murfreesboro area is around $365,000.
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Start my readiness checkNashville first-time buyer programs: FAQ
What first-time buyer programs are available in Nashville, TN?▾
Nashville runs a named local program — MDHA Homebuyer Assistance (Nashville) — which layers on top of the state flagship THDA Great Choice Home Loan from THDA. Combined, they stack with federal FHA, VA, and USDA loans for the largest per-buyer total.
What credit score do I need for first-time buyer programs in Nashville?▾
Most Tennessee first-time buyer programs require typically 620–640 for conventional, 580 for FHA. Higher scores unlock better rates and more DPA options.
How much home can a first-time buyer afford in Nashville?▾
Median first-time buyer purchase price in the Nashville-Davidson-Murfreesboro area is around $365,000 — meaningfully below the overall metro median of $445,000 because FTHBs concentrate in condos and starter homes. Use HomeApproach's Affordability Simulator to model what you can afford in your target ZIP.
Do Nashville programs work with FHA or VA loans?▾
Yes. MDHA Homebuyer Assistance (Nashville) and most THDA products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA package alongside your first mortgage.
Can I stack Nashville local DPA with state and federal programs?▾
In most cases yes. Nashville buyers regularly combine the local program with county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your total.