Not a First-Time Buyer? Tennessee's Targeted Counties Explained
THDA is usually for first-time buyers, no primary-home ownership in the last three years. But two big exceptions open it up: targeted census tracts and the Veteran Exemption. Here is how to find out if you qualify anyway.
The first-time rule and why it has exceptions
THDA’s Great Choice program is designed for first-time buyers, defined as not having owned a primary residence in the past 36 months. But federal housing-bond rules let states waive that requirement in targeted areas, neighborhoods the program wants to encourage investment in. Tennessee uses that flexibility, so a repeat buyer purchasing in a targeted census tract can still use Great Choice and the down payment assistance second.
Where the targeted tracts are
Every major Tennessee metro has targeted tracts. Memphis and Shelby County carry a large share of them, and Nashville, Knoxville, Chattanooga, and Clarksville all have targeted areas as well. Targeting is set at the census-tract level, not the whole county, so two homes a few miles apart can have different answers. Some fully or partially targeted counties also raise the income limit. Because it is tract-by-tract, the only reliable way to know is to check a specific address, which we do before you make an offer. Start with your county.
The Veteran Exemption
Veterans get the simplest path. A qualifying veteran is exempt from the 36-month first-time rule anywhere in Tennessee, targeted tract or not. So a veteran who owned a home during a previous assignment can use Great Choice and the DPA second on a new purchase. Combined with a VA loan and Homeownership for Heroes, that makes THDA one of the most veteran-friendly programs in the region, see our DPA + VA page.
Common questions
Can I use THDA if I am not a first-time buyer?
Sometimes. THDA normally requires no primary-home ownership in the last 36 months, but the rule is waived in targeted census tracts and statewide for qualifying veterans. Whether you qualify depends on your specific address or veteran status.
What is a targeted county in Tennessee?
A targeted area is a census tract the program encourages investment in. In a targeted tract, THDA waives the 36-month first-time-buyer rule and may allow higher income limits. Every major Tennessee metro has targeted tracts; targeting is set tract-by-tract, not by whole county.
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