Chattanooga & Hamilton County Down Payment Assistance (THDA)
Buying in Chattanooga or across Hamilton County? THDA can cover your down payment and closing costs. Here is how Great Choice and Great Choice Plus work in the Scenic City.
How THDA works in Hamilton County
Chattanooga has drawn national attention for its downtown revival and its outdoor draw, and prices have followed. Hamilton County buyers get a $101,854 income limit for a couple and $117,133 for a larger household. THDA pairs a Great Choice first mortgage (FHA, VA, or USDA) with Great Choice Plus assistance to cover the down payment and closing costs on a home up to the $500,000 statewide cap. For a first-time buyer priced out of a cash down payment, the forgivable second is often the piece that makes Chattanooga work.
Where the cap fits across Chattanooga
The $500,000 cap covers most of Hamilton County. East Ridge, Brainerd, Hixson, Red Bank, and East Brainerd carry affordable homes, and the growing suburbs of Ooltewah and Harrison give buyers newer construction under the cap. Closer-in North Shore and the historic districts near downtown run higher and can push past the line. Signal Mountain and Lookout Mountain are the areas most likely to exceed $500,000. Several Chattanooga tracts are targeted, which waives the first-time rule.
The targeted-tract waiver in Chattanooga
Like the other TN metros, Chattanooga has targeted census tracts where THDA waives the 36-month first-time-buyer rule. If you have owned before and are buying in one of those tracts, you can still use Great Choice and the DPA second. Veterans get the waiver statewide. We check the tract map against your target address so you know your options before you write an offer.
County income limits effective 08.01.2026, verified against the THDA county limit table; statewide maximum purchase price is $500,000. Limits change; confirm on the THDA down payment assistance page or our eligibility page before relying on a figure.
Common questions
What is the income limit for THDA in Chattanooga / Hamilton County?
Hamilton County's THDA income limit is $101,854 for a 1-2 person household and $117,133 for 3 or more, effective 08.01.2026.
How much assistance can I get with THDA in Chattanooga?
THDA Great Choice Plus offers a $6,000 or $10,000 no-payment second forgiven at 10 years, or up to 5% of the price (max $15,000) as an amortizing second, covering down payment and closing costs up to the $500,000 price cap.
Can repeat buyers use THDA in Hamilton County?
Yes, in the county's targeted census tracts, where THDA waives the 36-month first-time-buyer rule. Veterans also qualify for the waiver statewide.
Ready to see your options?
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