Nashville & Davidson County Down Payment Assistance (THDA)
Buying in Nashville or anywhere in Davidson County? THDA can cover your down payment and closing costs, and the Nashville metro carries Tennessee’s highest income limit. Here is how Great Choice and Great Choice Plus work in Music City.
How THDA works in Davidson County
Nashville sits at the top of Tennessee’s income tiers. Davidson County buyers get a $139,320 limit for a couple and $162,540 for a household of three or more, the highest in the state and the same ceiling shared by the surrounding metro counties. That reflects what has happened to Nashville prices. THDA pairs a Great Choice first mortgage (FHA, VA, or USDA) with Great Choice Plus down payment assistance, so a Davidson County buyer can cover the down payment and closing costs on a home up to the $500,000 statewide cap.
The assistance comes two ways. The no-payment option is $6,000 or $10,000 at zero percent, with no monthly payment, and it is forgiven at the end of 10 years, you only repay it if you sell or refinance before then. The amortizing option is up to 5% of the price, capped at $15,000, as a second with a monthly payment. Most Nashville first-time buyers take the forgivable option.
Where in Nashville the $500,000 cap fits
Music City has climbed, but the $500,000 acquisition cap still covers a real map. Antioch, Madison, Hermitage, Old Hickory, and parts of Donelson and Bordeaux carry the deepest supply under the cap. Condos and townhomes closer to the core can work. East Nashville and Inglewood are a mix. The neighborhoods where you will most often blow past $500,000 are 12 South, The Nations, Green Hills, and Sylvan Park. If your search pushes past the cap, the surrounding metro counties share Davidson’s high income limit and can open up more homes, see the county table.
Davidson is a partially targeted county
Here is a detail that helps repeat buyers. Davidson is partially targeted, which means the usual 36-month first-time-buyer rule is waived in the targeted census tracts inside the county. If your address falls in one of those tracts, you can use THDA even if you have owned a home in the last three years. Veterans get that waiver statewide through the Veteran Exemption. We check your exact address against the targeted map before assuming you are locked out.
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 Nashville / Davidson County?
Davidson County's THDA income limit is $139,320 for a 1-2 person household and $162,540 for 3 or more, effective 08.01.2026. It is the highest tier in Tennessee and is shared across the Nashville metro counties.
How much down payment assistance can I get in Nashville?
THDA Great Choice Plus offers either a $6,000 or $10,000 no-payment second that is forgiven at 10 years, or up to 5% of the purchase price (max $15,000) as an amortizing second. It covers down payment and closing costs on a home up to the $500,000 statewide cap.
Do I have to be a first-time buyer to use THDA in Davidson County?
Usually yes, no ownership interest in a primary home in the last 36 months. But Davidson is a partially targeted county, so the rule is waived in its targeted census tracts, and veterans get the waiver statewide. Check your specific address.
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