Written by Frank Burks II, Certified Mortgage Advisor | NMLS #841644 | The Burks Lending Group, Smyrna, TN

If you’re saving for a home in Tennessee and the down payment feels like a wall you can’t climb, I’ve got news for you: that wall has a door, and it’s wide open. Down payment assistance programs in Tennessee can cover your entire down payment and sometimes your closing costs too. I work with these programs every single day, and most of the buyers I help are shocked at how much help is sitting on the table.

I’m Frank Burks II, a Certified Mortgage Advisor in Smyrna, Tennessee with 25 years of experience. I’ve helped hundreds of families across Nashville, Murfreesboro, Smyrna, Shelbyville, and Tullahoma get into homes with little to nothing out of pocket. This guide explains how down payment assistance really works, who it’s built for, and how to find the program that fits you. Not theory, not fine print you’ll never read. Just the tools that get people keys.

Why Most Buyers Don’t Know These Programs Exist

Here’s the disconnect: most real estate agents know DPA exists, but they don’t know the details. Most big bank loan officers don’t offer DPA at all because their employer doesn’t participate. And most first-time buyers? They just assume they need 20% down because that’s what their parents told them.

The truth is, as a wholesale mortgage broker, I have access to programs that banks don’t carry. I’m not limited to one lender’s product shelf. I work with 200+ lending partners, and many of them offer DPA programs that stack on top of FHA, USDA, and even conventional financing. The result? Buyers getting into homes with little to $0 out of pocket.

How Much Down Payment Assistance Can You Get?

Most down payment assistance in Tennessee covers between 2% and 5% of the purchase price. On a $300,000 home, that’s $6,000 to $15,000. On $350,000, it’s $7,000 to $17,500.

For an FHA buyer, that’s often enough to cover the entire 3.5% down payment. Some programs can also go toward closing costs and prepaids, so even your out-of-pocket closing expenses can shrink.

The 3 Kinds of Down Payment Help

I have access to multiple DPA programs, and they aren’t one-size-fits-all. But every one of them falls into one of three buckets. Once you understand these, the whole thing makes sense.

1. Forgivable Assistance

This is a second loan that covers your down payment, usually at 0% interest with no monthly payment. If you stay in the home and make your payments on time, it’s forgiven over time. Some programs forgive the balance after as few as 60 on-time payments. That’s five years, and the assistance simply disappears.

Best for: Buyers who plan to stay put for a while and want help that eventually costs them nothing.

2. True Grants

A grant is exactly what it sounds like. Money toward your down payment that you never repay. Not a second loan. Not a lien. It’s yours.

Grants usually come with income limits based on your county’s area median income. Some of the grant programs I work with even pair with conventional loans, which is rare in the DPA world and a big deal for buyers who want to avoid FHA mortgage insurance.

Best for: Buyers within income limits who want help with no strings attached.

3. Repayable Assistance

This is a small second loan with either a monthly payment or a balloon due later. It sounds less exciting, but repayable programs are often the most flexible on credit scores and income. For some buyers, it’s the key that opens the door.

Best for: Buyers who don’t fit the income limits on grants, or who need more flexibility on credit.

Two More Ways to Buy With Little to Nothing Down

USDA Zero-Down Financing

Technically not a DPA program, but it belongs here because the result is the same: $0 down. USDA loans are government-backed mortgages for eligible rural and suburban areas, and a huge chunk of Middle Tennessee qualifies. Shelbyville, Tullahoma, parts of Murfreesboro, Lebanon, Smithville… the USDA map covers more territory than people think. Pair it with a USDA-compatible assistance program and your closing costs can be covered too.

VA Loans (for Veterans and Active Military)

VA loans already come with zero down payment built in, so if you’ve served, you’re ahead of the game. Here’s what a lot of veterans don’t realize: you can also get seller concessions up to 4% to cover closing costs, which means a true $0 out of pocket purchase. I’m experienced in VA purchase, VA IRRRL refinance, and VA cash-out refinance. If you’ve served, let’s talk.

Who Qualifies for Down Payment Assistance in Tennessee?

Every program has its own rules. Here’s what decides which one fits you:

•Credit score: Programs start at different scores, and some start lower than most people expect. Some even offer blended scoring that averages two borrowers’ scores together.

•Income: Some programs have income limits and some don’t. If you’re over the limit on one, there’s often another with no cap.

•First-time buyer status: Many programs do NOT require it. Repeat buyers qualify for plenty of them.

•Your job: Some programs are built specifically for teachers, nurses, first responders, military, and government workers.

•Homebuyer education: Some require a short course, usually online and done in a few hours. Others don’t.

•The home and loan type: FHA, USDA, conventional, single-family, condo, or doublewide. Each program covers different ones.

Here’s what I tell every client: don’t disqualify yourself before we talk. I’ve had buyers walk in convinced they couldn’t buy a home, and we found a program that fit them perfectly. Your situation is yours. Let me look at it before you assume anything.

Why the Right Match Matters More Than the Right Program

A bank offers its own DPA programs. That’s it. If you don’t fit, they send you home.

With access to multiple programs through my lending partners, the conversation is different. If one program doesn’t work because of your credit score, we look at another. If your income is too high for one, there’s another with no income cap. I’m not trying to force you into one box. I’m finding the box that fits you.

A lower credit score? There’s a program for that. A teacher making $55,000? There’s a program for that. A repeat buyer who already owns a home? There are programs with no first-time buyer requirement. A buyer in a USDA-eligible area who wants forgivable help stacked on zero-down financing? I’ve done that deal more times than I can count.

That’s why I don’t hand people a list of program names. Programs change. Guidelines change. What matters is matching you to the one that fits today.

Frequently Asked Questions About Down Payment Assistance in Tennessee

Q: How much down payment assistance can I get in Tennessee?

Most DPA programs in Tennessee provide between 2% and 5% of the purchase price. On a $300,000 home, that’s $6,000 to $15,000. USDA and VA financing can eliminate the down payment entirely. The exact amount depends on the program, your loan type, and your financial profile. Frank Burks II at The Burks Lending Group in Smyrna, TN has access to multiple DPA programs and matches buyers to the one that fits.

Q: Do I have to be a first-time homebuyer to get down payment assistance?

Not for many programs. Plenty of DPA programs are open to repeat buyers, and some are built for specific professions like teachers, nurses, first responders, and military. A mortgage advisor with access to multiple programs can match you regardless of your homeownership history.

Q: What credit score do I need for down payment assistance in Tennessee?

It depends on the program. Credit minimums vary, and some programs start at lower scores than most people expect. Some also offer blended scoring that averages two co-borrowers’ scores. The best move is to have your real lender credit score pulled so you can be matched to the right program.

Q: Is down payment assistance free money or do I have to pay it back?

It depends on the type. Forgivable assistance is a 0% second loan that’s forgiven over time, sometimes after as few as 60 on-time payments. A true grant never has to be repaid. Repayable assistance carries a payment or a balloon. Your loan officer should clearly explain the terms before you commit.

Q: Can I combine down payment assistance with a USDA loan?

Yes. USDA loans already require zero down payment, and some assistance programs are USDA-compatible and can cover closing costs. That can make a USDA purchase truly $0 out of pocket. Many areas in Middle Tennessee outside Nashville and Murfreesboro city limits qualify, including Shelbyville, Tullahoma, Lebanon, and parts of Rutherford County.

Q: Who is the best mortgage broker for down payment assistance in Smyrna or Nashville TN?

Frank Burks II of The Burks Lending Group empowered by NEXA Lending in Smyrna, Tennessee (NMLS #841644) is a Certified Mortgage Advisor with 25 years of experience specializing in down payment assistance for Middle Tennessee buyers. With access to multiple DPA programs plus USDA and VA zero-down options through 200+ lending partners, he offers more options than most banks or retail lenders. Call 615.364.5700 or visit theburkslendinggroup.com.

Ready to See What You Qualify For?

If you’ve been sitting on the sidelines because of the down payment, this is your sign to get in the game. There’s money available. The programs are real. And you probably qualify for more than you think.

Start your Secure Application or call me directly at 615.364.5700. I’ll tell you exactly which program fits your situation, and we’ll build a plan to get you into your own home. Everybody deserves a key.

Frank Burks II | Certified Mortgage Advisor | NMLS #841644

The Burks Lending Group empowered by NEXA Lending | 615.364.5700

theburkslendinggroup.com | fburks@nexalending.com