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The Housing Fund Down Payment Assistance

The Housing Fund, Inc. · Madison, Tennessee

Last verified
See what you qualify forOfficial program site →
Assistance

$5,000–$35,000

The maximum the program publishes — not an offer

Income limit

120% AMI

Of area median income; varies by county and household size

Repayment

Repayable

Repaid on the terms set by The Housing Fund, Inc.

What is The Housing Fund Down Payment Assistance?

The Housing Fund Down Payment Assistance is a repayable second loan for homebuyers in Madison, Tennessee, administered by The Housing Fund, Inc.

  • The Housing Fund, a nonprofit CDFI in the Nashville metro, offers a down payment assistance loan of $5,000 to $35,000 for down payment, prepaids, and closing costs throughout Tennessee. The assistance is a repayable second mortgage at a 5% fixed promotional rate over a 120- or 180-month term (not a grant). Buyers may earn up to 120% of county AMI, must occupy the home as a primary residence, and must complete THDA-certified homebuyer education.
  • Up to $35,000 for down payment, prepaids, and closing costs.
  • Statewide availability.
  • Repeat buyers eligible.
  • Serves up to 120% AMI.
  • Works with any FHA-approved TN lender.
  • Funding comes from The Housing Fund (CDFI) capital; investor/bank partners; CDFI Fund.

How much assistance does it provide?

The Housing Fund Down Payment Assistance offers between $5,000 and $35,000 in assistance.

  • Award tiers: Loans under $10,000 (min credit 600) and $10,000-$35,000 (min credit 620); income tiers at 80%, 100%, 120% AMI at same 5% rate.
  • Buyer contribution: Borrower must contribute at least 1% of the sales price.
  • The program can be combined with Layered behind an FHA first mortgage; THF does not provide first mortgages.
  • Amounts are the program's published maximums, not an offer — The Housing Fund, Inc. determines any individual award.

Do you have to pay it back?

The Housing Fund Down Payment Assistance is a repayable second loan and is repaid under the terms set by The Housing Fund, Inc..

  • Repayment is triggered by Fully amortizing repayable second loan over 120- or 180-month term; principal and interest paid monthly. Not forgivable.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

The Housing Fund Down Payment Assistance is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: Min 600 for requests under $10,000; min 620 for $10,000-$35,000.
  • A completed homebuyer education course, through THDA-certified housing counselor; online via eHome America when combined with a 1-hour counseling session.
  • Residency: Property in Tennessee.
  • DRAFT (dpa-gap-finder 2026-06-10): pending review. Promotional 5% fixed rate until further notice - confirm at application. Fully repayable (amortizing), not forgivable. 1% minimum borrower contribution. County AMI tables published as images/XLSX; 4-person dollar figure not extracted.

The program excludes

  • Households above 120% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

The Housing Fund Down Payment Assistance limits household income to 120% of the area median income, which varies by county and household size.

  • Up to 120% of HUD AMI for the applicable TN county (2025 HUD AMI, updated April 2025). Three tiers: 80%, 100%, 120% AMI. County tables published as image/XLSX; 4-person dollar figure not parseable.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

The Housing Fund Down Payment Assistance can be used for Single Family.

Where does it apply?

The Housing Fund Down Payment Assistance serves buyers purchasing in Madison, Tennessee.

How do you apply?

Applications for The Housing Fund Down Payment Assistance go through The Housing Fund, Inc., which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through THDA-certified housing counselor; online via eHome America when combined with a 1-hour counseling session..

  2. Contact The Housing Fund, Inc. to reserve funds

    Funds are reserved through Lender submits Request for THF Loan Approval (RFLA); THF underwrites in 5-7 business days., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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