Tennessee first-time home buyer programs: THDA limits and where they work

THDA limits for a Tennessee first-time home buyer (chart dated 08.01.2026)

Tennessee first-time home buyer programs: where they work around Nashville

If you're set on Williamson County, plan on a home priced well under the county's typical value or on a loan outside THDA. If the program matters more than the town, look first at Smyrna, Murfreesboro, Nashville, Gallatin, Lebanon and Columbia, where the typical home is under $500,000.

A typical value is a middle figure, so every town has homes on both sides of it. In Spring Hill, Hendersonville and Fairview, a home 3% to 7% under the typical value fits the cap; in Franklin and Brentwood, the cap is far below the middle of the market. Even Zillow's lowest-priced Franklin area, Southall, has a typical value of $570,803.

THDA limits for a Tennessee first-time home buyer in 2026

Purchase price limit for a THDA loan: $500,000

The acquisition cost limit on THDA's Great Choice and HFA Advantage chart is $500,000 in every county, from Williamson to the smallest rural county. On Zillow's September 2026 figures it rules out the typical home in every Williamson County town before your income is even counted.

Williamson County income limits for THDA

Household income can be up to $139,320 for one or two people or $162,540 for three or more. Williamson County isn't a targeted county, so the first-time-buyer requirement applies everywhere in it.

Example: the THDA income test for a Franklin home buyer

A two-person household earning $150,000 is over Williamson County's $139,320 limit for one or two people. If that household is three people, the limit is $162,540 and it qualifies on income. Either way, the home still has to be priced at $500,000 or less, and in Franklin that's the harder test: the price cap sits about 45% below Zillow's typical value.

Income limits for THDA in Davidson, Rutherford, Wilson and Sumner counties

Davidson, Rutherford, Wilson, Sumner, Cheatham, Robertson and Dickson counties use the same $139,320 and $162,540 limits. Maury County's are lower, at $124,320 and $145,040.

Targeted census tracts near Nashville

Some census tracts in Davidson, Rutherford, Robertson and Maury counties are marked as targeted on the chart, and in those tracts the first-time-buyer requirement is waived. A buyer who has owned before can check whether a specific address falls in one.

THDA HFA Advantage income limit

For the HFA Advantage loan, the three-or-more-person figure is the maximum for any household size; the lower one-to-two-person limit doesn't apply.

THDA loans and down payment help for a first-time home buyer

THDA pairs one first mortgage with two down payment options: help you repay only when you sell or refinance, or a larger amount you repay monthly.

Great Choice home loan from THDA

Great Choice is the agency's 30-year first mortgage for buyers under the income and price limits above. Its pages list a minimum credit score of 640.

THDA Great Choice Plus: deferred down payment help

The deferred option is a 0% second mortgage, shown as up to $6,000 (one THDA page also mentions $10,000), with nothing due monthly; it's repaid in full if you sell or refinance early.

THDA Great Choice Plus: amortizing down payment help

The amortizing option is up to 5% of the sales price, to a maximum of $15,000, repaid over 30 years at the first mortgage's rate. On a $400,537 Smyrna home, 5% would be about $20,000, so the $15,000 cap would apply, and at 7.4% that second loan adds about $104 a month.

Confirm all of these amounts with a THDA-approved lender or on thda.org before you plan around them: they weren't checked against THDA's full program pages.

What a first-time home buyer pays at the THDA cap in Tennessee

At the $500,000 cap with 5% down, principal and interest run about $3,289 a month at Freddie Mac's 7.4% average for the week of October 15, 2026. Mortgage insurance, property tax and homeowners insurance are extra, and THDA loan rates differ from the national average, so use the table for scale.

The two closing taxes are set by statute: $0.37 per $100 of the price, paid by the buyer, and $0.115 per $100 of the loan above $2,000, paid by the borrower. The calculator for Tennessee closing costs runs them on any price, and our guide to Tennessee closing costs covers the fees around them.

Property tax for a first-time home buyer at $500,000

At the cap, the 2026 tax in Williamson County runs from about $1,754 a year in Thompson's Station ($1.403 rate) to about $2,676 in Fairview ($2.1404), with Franklin outside the Franklin Special School District (FSSD) at about $1,958. In Nashville, the 2025 rate inside the Urban Services District works out to about $3,518 on a $500,000 home. The Williamson County property tax guide shows every 2026 rate.

First-time home buyer options in Williamson County

Spring Hill and Fairview: the closest Williamson County towns to the cap

Spring Hill's typical home is $518,832 and Fairview's is $535,208, so a below-typical home in either can fit under $500,000. Spring Hill crosses into Maury County, which has lower THDA income limits ($124,320 and $145,040) and some targeted tracts, so check which county the parcel is in. Our Spring Hill guide covers the county line.

Thompson's Station and Nolensville homes for a first-time buyer

Thompson's Station ($728,431) and Nolensville ($834,285) sit well above the cap. Thompson's Station has the lowest 2026 combined rate of any Williamson County town at $1.403, and Nolensville's is $1.64, but a THDA buyer needs a home 31% or 40% below those towns' typical values.

Franklin homes for a first-time buyer

Franklin's typical value is $913,277 and Zillow's cheapest Franklin area, Southall, is $570,803, so a THDA purchase in Franklin means a home far below the middle of the market, usually a condo or townhome.

Steps for a Tennessee first-time home buyer using THDA

Step 1: pick the county, then check the THDA cap

Decide where you'd live first, because the county sets your income limit and the town's prices decide whether the $500,000 cap is realistic. In Smyrna or Columbia the typical home leaves $99,000 to $130,000 of room; in Spring Hill you're shopping just under the middle of the market.

Step 2: match your household size to the THDA income limit

The limit is per household size: one or two people, or three or more. A household of three in Williamson County can earn up to $162,540, and in Maury County up to $145,040. Ask the lender which income counts toward the test.

Step 3: get pre-approved with a THDA-approved lender

The agency's loans are made through participating lenders. Ask the lender to run you for Great Choice and for a conventional or FHA loan side by side, so you can compare the rate, the mortgage insurance and the down payment help on the same sheet.

Step 4: insure the home during the inspection period

Your lender will need proof of insurance before closing. Price a replacement-cost policy, check the flood map and decide on flood cover early; our homeowners insurance guide for Tennessee buyers explains the 30-day flood wait.

Step 5: check the home's property tax split at closing

Williamson County mails bills in October and they're due by February 28. Check how your closing statement splits the current year's tax between you and the seller, and budget for the first bill in your name.

First-time home buyer at $500,000: Smyrna or Spring Hill

Smyrna leaves room under the cap and Spring Hill gets you into Williamson County. Tax rates are 2026 or 2025 as labeled:

Smyrna gives you the typical home with money left under the cap; Spring Hill gives you a Williamson County address and a slightly lower tax on the same price, at a below-typical home and a longer drive.

Questions a Tennessee first-time home buyer should ask a THDA lender

1. Do I qualify for Great Choice at my household size and income in this county, and which chart date are you using?
2. What's the current Great Choice rate, and how does it compare with your conventional and FHA quotes for me?
3. Which Great Choice Plus option fits, deferred or amortizing, and what exactly is due if I sell or refinance?
4. Is the address in a targeted census tract?
5. What's the minimum credit score you'll accept, and does my score change the rate?
6. What will mortgage insurance cost each month on each option?

Ask for the answers in writing on a loan estimate for each option, so you're comparing the same house on the same day.

Tennessee home price trends for a first-time home buyer

Zillow's 12-month changes to September 2026 show the direction, not a forecast: Tennessee's typical value rose 0.55%, Williamson County's 2.86% and Franklin's 3.02%, while Davidson County's fell 2.57%, Murfreesboro's 0.51% and Smyrna's 0.78%.

Three of the six places under the THDA cap fell (Nashville, Murfreesboro and Smyrna), which helps a first-time buyer negotiate, while Lebanon, Gallatin and Columbia rose 0.59% to 1.22%. Across the Nashville metro, 34% of listings had a price cut in August 2026 and homes took 64 days to go under contract. The Nashville suburbs ranking compares those towns on price, tax and distance, and our moving to Tennessee checklist covers the steps after closing.

Confirm the eligibility rules with the lender, and your own tax situation with a Tennessee CPA, before you commit.