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Tennessee Grants

There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down. 

Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level. 

Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds. 

State Sponsored
Bank Sponsored Matching Funds Programs
Community/local Sponsored Grants
Seller Funded Down Payment Assistance Programs

State Sponsored 

The State of Tennessee does not offer a down payment assistance program at this time. 

Bank Sponsored Matching Funds Programs 

Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information.

Community/local Sponsored Grants

Chattanooga Neighborhood Enterprise Inc. Affordable Housing Assistance Program 
(423) 756-6201 

Davidson County Home Ownership Metro Employee Program (HOME) (615) 780-7000 

Hamblen County Area Housing Opportunities Committee Gift Program (GIFT) 
(423) 586-8421

Jackson Affordable Housing Community Development Corporations SMART To Live in Jackson Program (SMART) (731) 422-1366 

Knoxville Community Development Corporation Home Ownership HOPE VI Program (HOPEVI) 
(865) 594-8800

Knoxville County Knox Housing Partnership Down Home 
(865) 637-1679 

Memphis City-Wide Down Payment Assistance Program (CWDPA) 
(901) 576-7424 

Seller Funded Down Payment Assistance Programs

There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money.

The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price.

These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site.

American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm

Nehemiah Corp: