If you’re a first-time homebuyer, chances are you’ve heard the old myth:
“You need 20% down to buy a home.”
While having 20% saved up is definitely a great position to be in, for many people—especially first-time buyers—it’s just not realistic. And the good news? It’s not required.
There are actually several first-time homebuyer programs available that can help you buy a home with a low down payment—or even no money out of pocket. Yep, you read that right.
Yes, You Can Buy a Home with Zero Down
Between down payment assistance programs, grants, and special lending options, it’s possible to get into a home with little to no upfront cost. In fact, if you’re able to negotiate with the seller to cover your closing costs, you could be holding the keys to your new home without spending a dollar upfront.
These programs vary by county, income level, and purchase price. Some are specifically designed for first-time buyers, while others are available for first responders, teachers, or even those with lower credit scores.
Depending on your unique situation, you could qualify for:
- Full down payment coverage (with a small monthly fee)
- Partial coverage (with no added cost)
- Local or state-level grant programs that don’t need to be paid back
Let’s break down two of the most popular programs currently available in Tennessee:
🏡 FHA Down Payment Assistance Program
This program is a great option for FHA borrowers. It covers the entire down payment, and while there is a small monthly fee added to your mortgage for using the program, it can be a game-changer for buyers who want to get in sooner without years of saving.
🏡 Conventional Grant Program
For buyers using a conventional loan, the standard minimum down payment is 3%. This program covers 2% of that amount, essentially gifting you free money with zero added cost. It’s an excellent fit for buyers with decent credit who want to lower their upfront expenses.
How to Get Started
There are a lot of moving pieces when it comes to down payment assistance, and what you qualify for in one part of Middle Tennessee may look totally different just a few miles away.
That’s why I always recommend talking to a local lender who knows the area and can help match you with the best program for your situation.
If you’re ready to explore your options or just want to ask a few questions, feel free to reach out to me directly—or contact Alex Gorman, a trusted lender here in Mt. Juliet:
👉 lebanonmortgagelender.com
