Less than most people assume. If you qualify, VA and USDA loans require zero down. FHA needs 3.5%, and many conventional loans go as low as 3%. Tennessee also offers down payment assistance for eligible buyers. The lowest-cost path depends on your situation — Sam shows you the cheapest way in at no cost. Call 253-431-2630.
How much down payment do you actually need?
Here's the truth that saves people years of waiting: you almost certainly don't need 20% down. That number is the single most common myth in home buying. Depending on what you qualify for, your real minimum could be 3%, 3.5%, or nothing at all. The smartest first move isn't saving a giant pile of cash — it's finding out which low- or zero-down path actually fits you. That's a free conversation, and it often changes a buyer's whole timeline.
Zero down: VA and USDA
Two programs let qualified buyers finance the entire purchase price with nothing down. VA loans are for Veterans and active-duty military — zero down, and no monthly mortgage insurance. USDA loans are for buyers in eligible areas, and a surprising amount of the Tri-Cities qualifies. If either fits you, it's usually the cheapest way into a home, and you may not need a separate assistance program at all.
Low down: FHA and conventional
If a zero-down loan isn't a fit, the down payment is still small. FHA loans require just 3.5% down with flexible credit — a strong option for first-time and credit-building buyers. Conventional loans can go as low as 3% down for eligible buyers; you'll carry private mortgage insurance under 20% equity, but unlike FHA, it falls off once you reach 20%. Which one is cheaper over time depends on your credit and how long you'll keep the loan — I'll run both so you can see the difference.
Get up to $15,000 toward your down payment
There's a real program that puts real money toward your down payment or closing costs — up to $15,000, or a version with no monthly payment at all. It's not a loan gimmick or a limited-time promotion; it's been available to Tennessee buyers for years. You just may not have heard of it, because the name is an acronym: THDA.
THDA — the Tennessee Housing Development Agency — is the state agency behind this assistance, called Great Choice Plus. It's not a standalone loan; it pairs with your actual mortgage (FHA, VA, USDA, or conventional) to help close the down payment or closing cost gap, structured either as a small second loan with its own payment or as assistance that sits quietly in the background until you sell or refinance.
Whether you qualify, and which option fits, depends on income and purchase price limits that THDA sets by county and updates over time — rather than quote a number here that could be stale by the time you read it, I check your specific county and household on a quick call. See the full breakdown of all three Great Choice Plus options, eligibility, and a calculator that compares your numbers →
Veterans: you have the most options of anyone
If you served, you're in the best position of any buyer. A VA loan already means zero down and no monthly mortgage insurance. On top of that, THDA's Homeownership for Heroes program offers a reduced interest rate to Veterans and active-duty military (and other public-service heroes). As a Marine Corps Veteran who has used the VA benefit myself, making sure no eligible buyer leaves these on the table is personal for me.