First-Time Homebuyer Programs in Tennessee and Georgia (What They Are and How They Actually Help)
For most first-time homebuyers, the hardest part of buying a home isn’t finding the house. It’s figuring out how to afford the down payment and closing costs while still keeping some money in the bank.
That’s where state first-time buyer programs can make a real difference. In Tennessee and Georgia, two of the most common programs we work with are THDA and Georgia Dream. These programs are designed to help buyers who have steady income but need help getting over that upfront financial hurdle.
This guide walks through what these programs are, who they’re for, and how they actually work in real life.
What Counts as a First-Time Homebuyer?
Most first-time buyer programs define a first-time buyer as someone who has not owned a home in the last three years. That means even if you owned a home years ago, you may still qualify.
In some cases, you can also qualify if you are buying in certain targeted areas or if you fall into specific professions or household situations. The details vary by program and by county, which is why it’s important to look at your specific situation rather than relying on general rules.
First-Time Buyer Programs in Tennessee (THDA)
In Tennessee, the main statewide program is offered through the Tennessee Housing Development Agency (THDA).
THDA works alongside standard loan programs like FHA, USDA, and conventional loans. The big advantage for many buyers is not the loan itself, but the down payment and closing cost assistance that can be added to it.
Who THDA Is Designed For
THDA programs are typically for:
Buyers purchasing a primary residence in Tennessee
Households under certain income limits based on county and household size
Buyers who complete a homebuyer education course
Buyers who meet minimum credit score guidelines
There are also special versions of the program for certain professions, such as military members, veterans, and first responders.
Down Payment Assistance Through THDA
THDA offers assistance that can be used for:
Down payment
Closing costs
Prepaid items like taxes and insurance
The assistance usually comes in one of two forms:
A second loan that is paid back over time
Or a deferred loan that does not require monthly payments and is paid back if you sell, refinance, or move out of the home
In practical terms, this can reduce how much cash you need to bring to closing by several thousand dollars.
For many first-time buyers, this is what turns “I don’t think I can afford to buy yet” into “I might actually be able to do this.”
First-Time Buyer Programs in Georgia (Georgia Dream)
In Georgia, the main statewide program is called Georgia Dream.
Like THDA, Georgia Dream is designed to work alongside standard mortgage options and provide help with the upfront costs of buying a home.
Who Georgia Dream Is Designed For
Georgia Dream is typically available to:
First-time homebuyers or buyers who haven’t owned a home in the last three years
Buyers purchasing a primary residence in Georgia
Households under certain income and purchase price limits
Buyers who complete a homebuyer education course
Some buyers may also qualify under special categories, such as public service workers or households with a disabled family member.
Down Payment Assistance Through Georgia Dream
Georgia Dream offers down payment and closing cost assistance in the form of a second loan.
This assistance:
Does not require monthly payments on the assistance loan
Is typically repaid when the home is sold, refinanced, or no longer used as a primary residence
Can significantly reduce the amount of money needed at closing
For many Georgia buyers, this is the difference between waiting several more years and buying sooner.
How These Programs Fit Into the Buying Process
When someone uses one of these programs, the process usually looks like this:
Get pre-approved with a lender that works with these programs
Confirm eligibility for THDA or Georgia Dream
Structure the loan and assistance together
Use the assistance to reduce upfront costs
Buy the home with a more manageable amount of cash out of pocket
These programs do not remove the need for responsible budgeting or planning, but they often remove the biggest barrier: coming up with a large lump sum of money all at once.
A Few Important Things to Know
These programs are helpful, but they are not magic.
It’s important to understand that:
Down payment assistance is usually a second loan, not free money
Homebuyer education is required
Income and purchase price limits apply
These programs are for primary residences, not rental or investment properties
The details change over time and vary by county
This is why it’s important to work with someone who uses these programs regularly and understands how to structure them correctly.
What This Means for You
If you’re buying in Tennessee, THDA may help you cover part of your down payment and closing costs.
If you’re buying in Georgia, Georgia Dream may help you do the same.
In both cases, these programs are meant to make homeownership more realistic for buyers who have stable income but limited cash saved.
They are not shortcuts. They are tools.
Ready to See What You Qualify For?
Every situation is different. Your income, your credit, your county, and your goals all matter.
We help buyers:
See which programs they qualify for
Understand how much assistance they could receive
Build a plan that makes sense for their budget
If you’re thinking about buying in Tennessee or Georgia, the first step is simply having a conversation about where you’re at and what’s possible.
Reach out when you’re ready, and we’ll walk through it together.