Knoxville & Knox County Down Payment Assistance (THDA)
From downtown Knoxville to Farragut, THDA can cover your down payment and closing costs in Knox County. Here is how Great Choice and Great Choice Plus work in East Tennessee’s largest metro.
How THDA works in Knox County
Knox County anchors East Tennessee, and its numbers sit in the middle of the state’s tiers, a $103,700 income limit for a couple and $119,255 for a larger household. THDA pairs a Great Choice first mortgage (FHA, VA, or USDA) with Great Choice Plus down payment assistance to cover the down payment and closing costs. With the University of Tennessee, a steady health-care sector, and growth toward Farragut and Hardin Valley, Knoxville draws a lot of first-time buyers who fit comfortably under the $500,000 cap.
Where the cap fits in and around Knoxville
The $500,000 acquisition cap covers nearly all of Knox County. North and East Knoxville, Fountain City, Halls, Powell, and Karns hold affordable homes. South Knoxville and the areas near downtown are a mix of older houses and newer infill. Farragut and West Knoxville run higher but usually stay under the cap. Outside the city, Corryton and Mascot give buyers more room. Knoxville also carries targeted tracts that waive the first-time rule.
A note for UT grads and health-care hires
Plenty of Knox County buyers are finishing at the University of Tennessee or starting a job at one of the hospital systems. Two things to know. THDA needs a 640 credit score, so if your credit is thin we look at what is reporting before you shop. And a recently started job can usually count once it is documented, so you may not have to wait a full year to buy. The forgivable second lets a lot of first-year professionals get in with very little cash.
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 Knoxville / Knox County?
Knox County's THDA income limit is $103,700 for a 1-2 person household and $119,255 for 3 or more, effective 08.01.2026.
What credit score do I need for THDA in Knox County?
THDA programs require a minimum 640 credit score and a maximum 45% debt-to-income ratio. The Great Choice Plus down payment assistance follows the same requirements as the Great Choice first mortgage.
Can a recent UT graduate use THDA in Knoxville?
Yes, if you meet the 640 credit and county income requirements. A recently started job can usually count once it is documented, and the $6,000 or $10,000 forgivable second helps first-year buyers get in with little cash.
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