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Home buyer help · Tennessee

Buying a home in Tennessee: the help you may qualify for.

Down payment assistance, property tax exemptions and veteran benefits in Tennessee, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.

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Last checked November 11, 2026Sources state agencies

Down payment and closing cost help

From the Tennessee Housing Development Agency (THDA).

  • Great Choice Plus

    $6,000 or $10,000 deferred, or up to 5% (max $15,000) with payments

    The deferred option is forgiven after 10 years; the other is repaid over 30 years at the first mortgage rate.

  • Homeownership for Heroes Military and heroes

    Up to 5% of the price or $15,000

    For military and veterans: a reduced interest rate and the first-time buyer rule waived.

Who qualifies: Homebuyer education required, income and price limits, through a THDA lender.

Property tax exemptions and credits

Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your county trustee. Tennessee’s official exemptions information.

No exemption for every homeownerTennessee doesn’t have a statewide property tax exemption for every homeowner. Its benefits are for the groups below. Some cities and counties add their own, so ask your county trustee.

For homeowners 65 and older

  • Tax relief for seniors and disabled homeowners

    A payment toward taxes on up to $33,600 of your home's value

    For homeowners 65 or older, or totally and permanently disabled, with 2025 income at or under $38,470 (for the 2026 program). Tennessee doesn't have a general homestead exemption.

    How to apply: With your county trustee. (Tennessee Comptroller)

  • Property tax freeze (where offered)

    Freezes the tax amount on your home

    Some counties and cities freeze taxes for homeowners 65 or older under an income limit that differs by county. Ask your county trustee whether yours takes part.

    How to apply: With your county trustee. (Tennessee Constitution, Art. II, ยง28)

For veterans

  • Disabled veteran tax relief

    Relief on taxes for up to $175,000 of your home's value

    For qualifying disabled veterans and surviving spouses, with no income limit. The VA confirms eligibility.

    How to apply: With your county trustee (Form F-16 for the VA). (Tennessee Comptroller)

Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.

If you serve or served

  • VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
  • Homeownership for Heroes: Up to 5% of the price or $15,000. For military and veterans: a reduced interest rate and the first-time buyer rule waived.
  • Property tax: veterans in Tennessee may qualify for Disabled veteran tax relief. See the details above.

Your next steps

  1. Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists Tennessee’s programs with the loans you may qualify for.
  2. Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
  3. Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
  4. Follow the step-by-step home buyer’s guide from budget to keys.

Common questions

Does Tennessee have down payment help for home buyers?

Yes. Programs from the Tennessee Housing Development Agency (THDA) include Great Choice Plus, Homeownership for Heroes. Homebuyer education required, income and price limits, through a THDA lender. Funding and rules change often, so check with the agency or a participating lender.

Does Tennessee have a homestead or property tax exemption for homeowners?

Tennessee doesn't have a statewide exemption for every homeowner. Its property tax benefits are for groups such as seniors, veterans and people with disabilities. Ask your county trustee about local programs.

Is there help for veterans buying a home in Tennessee?

VA home loans are available in every state, often with no down payment. Tennessee also has a program with benefits for military, veterans or other public servants: Homeownership for Heroes. Veterans may also qualify for property tax benefits such as Disabled veteran tax relief.

Sources: Tennessee Housing Development Agency (THDA) and Tennessee’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.