New rules mean more Nashville area homebuyers can qualify for a home loan with down payment assistance from the Tennessee Housing Development Agency.

Effective August 1, the maximum income to buy a home in Davidson and surrounding counties with one of THDA’s Great Choice Home Loans is rising to $104,860 for a household of three or more people. That’s an increase of $8,680 over the current cap.

For a one- or two-person household, the new cap will be $89,880, an increase of $7,440.

“Our state is enjoying a lot of economic growth right now, along with low unemployment, and that’s resulting in fast-growing home prices in many areas,” said THDA Executive Director
Ralph M. Perrey. “Our new income limits will keep us in line with the changes we see in wages
and home prices by county.”

All of THDA’s Great Choice Home Loans include the option of financial assistance to help
cover the loan’s down payment and closing costs.

“The down payment is the number one barrier that keeps renters from becoming homeowners,” said THDA Executive Director Ralph M. Perrey. “We designed our down payment assistance program to give qualified homebuyers a little boost over that barrier so their families can enjoy the financial benefits of homeownership.”

THDA’s down payment assistance typically comes in the form of a Great Choice Plus second
mortage loan of up to five percent of the home’s purchase price. The second mortgage accrues no interest and requires no monthly payments. Homebuyers are only required to repay exactly what they borrowed when they sell, refinance, or move out of the home.

For a limited time, qualified homebuyers in certain ZIP Codes have the option of a flat $15,000 second mortgage loan in place of the typical five-percent loan.

“People are regularly surprised to find out just how wide a range of homebuyers we’re able to help with our down payment assistance program,” said Perrey. “By design, we serve families who can ably afford a monthly mortgage payment if only they had help with the down payment. That’s our niche, and it’s a very important one in order to keep our state’s housing market moving in the right direction.”

The new $89,880 and $104,860 income limits are for Davidson and surrounding counties,
including Cheatham, Sumner, Robertson, Rutherford, Williamson, and Wilson Counties, as well
as Dickson County. THDA revises its income limits annually based on the Area Gross Median
Family Income (AGMFI) as provided by HUD and the average area home purchase price
(AAPP) as provided by the IRS. The new income limits for every Tennessee county are available at

About THDA
As the State’s housing finance agency, the Tennessee Housing Development Agency (THDA) is a self-sufficient, publicly accountable entity of the State of Tennessee. Our purpose is to meaningfully expand affordable housing opportunities for Tennesseans. More information about THDA can be found online at


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