Overview
Nashville's prices have flattened but not fallen far. Redfin's median sale price was $464,779 for the three months ending September 2026, down 1.1% from a year earlier, with a median of 66 days on market and 2,666 September sales. Greater Nashville Realtors' nine-county September report shows a $510,000 residential median, a $331,780 condo median, inventory up 6% and nearly six months of supply, which means buyers can negotiate again. Realtor.com's Davidson County list median was $525,000. First-time buyers in Davidson County mostly buy condos, or single-family homes in Antioch, Madison, Donelson, Hermitage and Bellevue, or cross into Rutherford, Wilson and Sumner counties. A 3.5% FHA down payment on a $465,000 home is $16,275 before closing costs, so the local stack matters.
Nashville's local help is nonprofit-led. The Housing Fund, a Nashville CDFI, lends $5,000 to $35,000 for down payment and closing costs at a 5% fixed promotional rate over 10 or 15 years; a $20,000 loan costs about $158 a month over 15 years. You need a 600 credit score for loans under $10,000 (620 above), an FHA-approved Tennessee lender, THDA-approved homebuyer education, and income up to 120% of the Nashville AMI; you do not need to be a first-time buyer. The Housing Fund's Shared Equity program covers 25% of the purchase price at 0% with no payments, repaid at sale along with half of the appreciation, for first-time buyers using one of three partner banks, with a $600 processing fee and a $50 monthly stewardship fee. Its Community Land Trust sells price-restricted homes in Davidson County to first-time buyers at or below 80% of AMI in partnership with Metro. Affordable Housing Resources runs the Tennessee Downpayment Partnership, a due-on-sale loan for first-time buyers at or below 80% of HUD limits through three partner banks. Habitat for Humanity of Greater Nashville builds 0%-mortgage homes; its Bella Terra community in Antioch takes applications November 2 to 16, 2026. FHLB Cincinnati's Welcome Home grant of up to $20,000 through member lenders opened April 6, 2026 and is already closed for the year. Metro government itself does not give buyers cash: the Barnes Housing Trust Fund funds nonprofit developers (Round 16 awards came in summer 2026), and those homes reach buyers through the nonprofits.
Local Programs in Nashville
The Housing Fund Down Payment Assistance
Minimum credit score 600 for loans under $10,000 and 620 for $10,000 to $35,000. The first-mortgage lender must be FHA-approved in Tennessee; any such lender can participate. Homebuyer education from a THDA-approved provider before closing (online eHome America is accepted only with a one-hour one-on-one counseling session). The older program page requires a buyer contribution of at least 1% of the sales price; the June 2026 program sheet does not list it. The Housing Fund underwrites within 5 to 7 business days of receiving a complete package from the lender. The 5% promotional rate applies 'until further notice'; application form revised September 2026.
The Housing Fund Shared Equity Program
Buyers must never have owned a home. The 30-year fixed first mortgage must come from Citizens Bank (620 minimum score), FirstBank (640) or Pinnacle Financial Partners (650). Six hours of THDA-approved homebuyer education plus two hours of Shared Equity education. $600 processing fee at closing and a $50 monthly stewardship fee; closings run through Providence Title; owners cannot buy out The Housing Fund's 25% share, and refinancing generally requires notice.
The Housing Fund Community Land Trust (Nashville)
Applicants must be mortgage-ready with a pre-approval from a first-mortgage lending partner, complete homebuyer education and a financial counseling session, and pay a $600 processing fee at closing. Buyers are served first-come, first-served from a prequalified list; homes available are not listed online, so call the Director of Community Impact at 615-780-7000.
Tennessee Downpayment Partnership
The first mortgage must come from First Community Bank, Studio Bank or Wilson Bank. Apply by getting a first-mortgage approval from one of those lenders, then scheduling an Eligibility Determination Session with AHR (615-251-0025 ext. 200). Funding status is not posted. AHR also offers eHome America education and financial coaching.
Habitat for Humanity of Greater Nashville homeownership program
No home ownership in the last three years and no foreclosure in the last four. Minimum FICO 600 (or alternative credit), collections under $2,000, debt-to-income no more than 41%, two years of steady U.S. income. Sweat equity is 10 build days plus 15 ReStore hours; classes run on Tuesday and Thursday nights for several months. Buyers save about $3,000 for closing costs; an optional Pinnacle Financial Partners matched-savings program adds up to $1,000. The Bella Terra community in Antioch (Davidson County) opens applications at 10 a.m. November 2, 2026 and closes 5 p.m. November 16, 2026.
FHLB Cincinnati Welcome Home Program
The 2026 Welcome Home Program opened for reservations at 8 a.m. ET on April 6, 2026, first-come, first-served, and is now closed for the year. Buyers need a fully executed purchase contract, at least $500 of their own funds, and, if a first-time buyer (no ownership in the last three years), a homebuyer counseling course before closing. Applications go through member lenders only (888-345-2246 for questions).
Stacking With Tennessee Programs
THDA's Great Choice first mortgage (FHA, VA, USDA or conventional through THDA-approved lenders) comes with Great Choice Plus: a deferred option of up to $6,000 or up to $10,000 at 0% that is forgiven at the end of 10 years but due in full if you sell or refinance sooner; an amortizing option of up to 5% of the sales price (maximum $15,000) over 30 years at the first-mortgage rate; or up to $25,000 at 0% over 15 years for newly built homes. Great Choice Plus and a Housing Fund loan are both second liens, and THDA's down payment page does not address adding a third lien, so a THDA-approved lender has to confirm whether The Housing Fund's loan can sit behind Great Choice Plus on your file or whether you should pick one; The Housing Fund only requires that the first-mortgage lender be FHA-approved, and VA buyers can skip the down payment and point local funds at closing costs. Metro Nashville itself has no direct buyer assistance; its Barnes Housing Trust Fund grants go to nonprofit developers.
Full details, income limits, and the federal FHA, VA, and USDA options are on the Tennessee first-time homebuyer programs guide. When you know what you qualify for, compare the best mortgage lenders for first-time buyers and confirm the lender is approved for the program you plan to use.
Tips for First-Time Buyers in Nashville
The state layer is THDA's Great Choice loan with Great Choice Plus: a deferred option of up to $6,000 or $10,000 at 0%, forgiven after 10 years but due in full if you sell or refinance sooner; an amortizing option of up to 5% of the price (maximum $15,000) over 30 years at the first-mortgage rate; or up to $25,000 at 0% over 15 years for new construction. Both Great Choice Plus and a Housing Fund loan are second liens, and THDA's page does not address a third lien, so ask a THDA-approved lender whether The Housing Fund can sit behind Great Choice Plus or whether you should choose one. VA buyers can skip the down payment entirely and use local funds for closing costs.
Get your THDA-approved education done early; The Housing Fund accepts eHome America only when paired with a one-hour counseling session. Woodbine Community Organization, Affordable Housing Resources, New Level CDC and Residential Resources are HUD-approved agencies in Nashville. The Housing Fund underwrites within 5 to 7 business days of a complete package from your lender, so incomplete files are the usual delay. The 5% promotional rate holds 'until further notice,' and Welcome Home and Habitat run on calendars, so plan a spring purchase if you want the grant.
Nashville is not cheap, but a buyer at 80% to 120% of AMI can combine THDA's first mortgage with $20,000 to $35,000 from The Housing Fund and close with modest savings. Start with the class, then a lender who knows both programs.
Frequently Asked Questions
Sources
- The Housing Fund - Downpayment Assistance
- The Housing Fund - Nashville 2026 DPA program sheet (PDF)
- The Housing Fund - Shared Equity Homeownership
- The Housing Fund - Community Land Trust
- The Housing Fund - Income Guidelines
- Affordable Housing Resources - Tennessee Downpayment Partnership
- Habitat for Humanity of Greater Nashville - Qualification
- Habitat for Humanity of Greater Nashville - Homeownership
- FHLB Cincinnati - Welcome Home Program, Homebuyer Information
- Metro Nashville - Barnes Housing Trust Fund
- Woodbine Community Organization - Homebuyers
- THDA - Down Payment Assistance (Great Choice Plus)
For educational purposes only -- not financial or tax advice. Program details, funding availability, income limits, and benefit amounts change, often mid-year. Verify everything with the administering agency before you apply. Median home price: Redfin, Nashville TN housing market: median sale price $464,779 for the three months ending September 2026 (-1.1% year over year; 2,666 homes sold in September; median 66 days on market), https://www.redfin.com/city/13415/TN/Nashville/housing-market. Cross-checks: Greater Nashville Realtors September 2026 nine-county report, residential median $510,000 and condominium median $331,780 (2,885 closings, 15,536 inventory); Realtor.com median listing price for Davidson County, September 2026, $525,000 (FRED series MEDLISPRI47037).. Last verified: October 29, 2026.