Down payment assistance

What is actually available

Tennessee's THDA runs Great Choice Plus alongside its Great Choice first mortgage. Mississippi has its own agency routes. Both sit on top of a normal FHA, VA, USDA or conventional loan rather than replacing it.

Separately, VA and USDA need no down payment at all for those who qualify, which makes them a form of assistance in their own right and often the cheaper answer.

• THDA deferred: $6,000 second at 0%, forgiven at thirty years
• THDA amortising: up to 5% of price, capped at $15,000
• VA: no down payment for eligible service members and veterans
• USDA: no down payment inside eligible areas
• Gift funds: family can provide the whole FHA 3.5%

The catch worth knowing

Assistance comes with conditions: income limits, purchase price limits, a first-time buyer definition that is broader than people expect, and usually a homebuyer education course.

The first-time definition typically means not having owned in three years, so plenty of previous owners qualify again.

Which one is right

If you are VA eligible, take the VA loan. If the address is USDA eligible and you fit the income limit, that is usually next cheapest.

Assistance on top of FHA is for the buyer who has neither, and it is genuinely useful there. Jason works out which of these you actually qualify for before you start looking.

Questions people ask