Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Johnson City, TN always shows the options in force.
Of the purchase price
The largest option is a repayable second lien that covers your down payment and can reach closing costs and prepaids too; the smaller options cover the 3.5% FHA minimum down payment.
Covers the whole FHA down payment
The FHA minimum down payment is 3.5%, and this option covers all of it with nothing to pay back — no lien, no payment, no interest — for buyers at or below the area income limit or in a qualifying category.
On the forgivable and repayable options
Most of the options carry no income limit, so a higher-earning household qualifies the same as anyone else; only the nothing-to-repay option looks at income, at 140% of the area median, or at a qualifying category.
Credit score to start
The score that opens the nothing-to-repay option; the forgivable options start a step higher and the repayable options higher still. Two-borrower files may use a blended score on the second-lien options.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Tennessee · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Program figures are hydrated from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not the lender, and is not affiliated with FHA, USDA, HUD, or the federal government.
What down payment assistance is — and how the options differ.
For Johnson City, TN buyers, the first-time home buyer programs work the same way: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Tennessee.
Assistance covers the FHA down payment
Every option is sized on the price, not on a fixed sum: the smaller options cover the minimum investment, the larger repayable option covers it and reaches closing costs and prepaid items too.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Johnson City, TN cover the same minimum investment and differ in what the buyer owes afterward.
Credit floors, mortgage programs, and unit counts
A Johnson City file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in Tennessee.
Eligibility without a first-time-buyer rule
In Johnson City, TN, the question is not whether this is a first home; it is which option fits the credit, the first lien, and the property — and, for the nothing-to-repay option, which qualifying category applies.
Enter a price, choose an option, and add your own cash. The calculator sizes the minimum investment, splits the assistance between the down payment and closing costs, and estimates the FHA payment with mortgage insurance, taxes, insurance, and dues.
Where Johnson City’s first-time and moderate-income buyers shop — and how the assistance fits.
Census housing and income data describe who buys in Johnson City, TN and what it costs to get in; a lender reads those figures as context for the first lien, not as underwriting inputs.
Market context only. In most markets, the renter households are the pool the program exists for: qualified for a payment close to their rent, short the cash to close; the assistance is the bridge from one to the other.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Johnson City submarkets, distinct property rules.
The metropolitan market around Johnson City splits into distinct pockets; a lender underwrites the home in front of it, but the pocket sets the expectations.
Older neighborhoods and renovation loans
In Johnson City’s established neighborhoods, a buyer can use the program with a limited or standard renovation loan, so the down payment help and the repair budget close together. On a home at Johnson City’s median value, the FHA minimum investment comes to about $9,400 — the figure the assistance is built to cover.
Townhomes and attached homes
Attached homes and townhomes in Johnson City sit at price points where the minimum investment is smaller in dollars but no easier to save; the assistance closes that gap, and the association’s documents are reviewed with the file. Johnson City counts a population near 72K within the Johnson City, TN area.
Two-to-four-unit homes, owner-occupied
The small multi-unit stock in Johnson City is a path to a first home that also earns rent; the assistance pairs with the first lien on the building, up to the option’s unit limit. About 49% of Johnson City’s households rent — roughly 14,931 renter households, the pool the program exists for.
Manufactured homes on owned land
Manufactured housing on owned land near Johnson City is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median household income in Johnson City sits near $57,254 on the latest Census estimate.
Condominiums close to work
Condominiums are often the entry point in Johnson City, and the assistance follows the first lien: the building needs FHA approval, or a single-unit approval, before the down payment help can attach to it. Median gross rent in Johnson City is about $1,023 a month — the payment many renters already carry.
New construction and infill
A newly built Johnson City home is eligible; the buyer’s own funds requirement is covered by the assistance, and the builder’s closing date is met once the first lien is approved. The median owner-occupied home value in Johnson City runs near $268,200 on the latest Census estimate.
Read the submarkets as orientation. The file’s figures come from the first lien, the option, and the program’s rules.
Four ways Johnson City buyers put down payment assistance to work.
From a first home to a small multi-unit building to an FHA refinance, down payment assistance in Johnson City, TN solves a specific set of problems.
Cover the costs of an FHA refinance
Owners in Johnson City with an FHA loan and little cash for a refinance use the refinance-cost option, subject to its own credit floor and combined-leverage limit.
Pair the assistance with a USDA or HUD-184 mortgage
A Johnson City, TN buyer on a USDA or HUD-184 first lien uses the second-lien options, forgivable or repayable; the nothing-to-repay option pairs only with FHA first liens.
Buy a first home with the down payment covered
The most common Johnson City, TN file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Buy a home that needs work with a renovation mortgage
For an older Johnson City home, the renovation first lien and the assistance fit together, with the assistance measured on the price rather than the repaired value.
Size the assistance on a Johnson City price before requesting a quote.
The calculator does what a loan officer’s first pass does for a Johnson City file — sizes the minimum investment, applies the option, builds the FHA loan with mortgage insurance, and estimates the payment — using the current program figures and an editable benchmark rate.
Johnson City FHA payment with assistance
A Johnson City scenario to start from — adjust the price, the option, your own cash, the term, and the rate to see the assistance and the payment.
Editable benchmark: 6.71% as of September 3, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $270,000 price near Johnson City’s median owner-occupied home value (kept where an FHA first lien is realistic), the strongest assistance option offered in Tennessee applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Tennessee (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, four very different closings.
The right structure for a Johnson City, TN buyer depends on savings, credit, the first lien, and whether the help needs to reach closing costs.
Assistance on a government loan, saving the minimum, or a gift.
Covers the FHA minimum investment as a percentage of the price — some with nothing to repay — with forgivable and repayable second-lien shapes, credit floors in the low six hundreds, and no first-time-buyer rule; the larger option reaches closing costs and prepaids.
The buyer brings the minimum investment from savings, a retirement withdrawal, or seasoned funds; no second lien, no eligibility category, no homebuyer education requirement, and no assistance to carry. For the first lien itself, see Lendmire’s FHA loan program.
Where the property is USDA-eligible or the buyer qualifies for HUD-184, the second-lien options carry the Johnson City file, and the closing costs are what the assistance covers. For the USDA first lien, see the USDA loan program.
Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers; a documented gift fits when family can help — Lendmire places the Johnson City, TN file where it reads best.
What to prepare for a Johnson City scenario review.
A typical starting file for a first purchase with assistance.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
A down payment assistance file in Johnson City, TN is won or lost on details a plain purchase never meets: the eligibility category, the forgiveness clock, the balloon on the repayable option, the county loan limit, the property type.
Use these checks to keep the Johnson City file clean and fundable.
A clean Johnson City file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: confirm the option is offered in the state.
- Confirm the category: complete the homebuyer education course where required.
- Take the course: keep the certificate for the file.
The option decides what you owe afterward
The same minimum investment can be covered three ways in Johnson City, TN, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
Homebuyer education on the nothing-to-repay option
For a Johnson City buyer heading for the nothing-to-repay option, the course is the first thing to schedule; the certificate is part of the file, closing waits on it, and the cost is credited back at the table.
The mortgage and the county loan limit
In Johnson City, TN, the first-lien program is chosen with the property: USDA where the address is eligible, HUD-184 where the buyer qualifies, FHA everywhere. The county loan limit then decides whether a larger first lien can still carry an assistance option.
Property type and unit count select the option
Before the contract is signed on a Johnson City home, the unit count, the condominium status, the manufactured-home width and title, and any association package are checked against the option’s rules.
From a Johnson City pre-approval to keys with the assistance in place.
The process for a Johnson City, TN purchase with assistance is deliberate, because the details around the assistance are what stall closings.
Pick the option
Lendmire reads the Johnson City scenario against the options offered in Tennessee: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; a Johnson City buyer’s income, credit, and reserves are read the way the first lien requires.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
The first lien and the assistance close at the same table — the assistance as a grant released at closing where offered, or as a second lien with its own loan number — and the Johnson City buyer receives keys with the minimum investment covered.
A brokerage that pairs the assistance to the loan.
Down payment assistance is where a generalist stumbles: the options differ by first lien, by credit tier, by unit count, and by state, and the wholesale programs that carry them competently are a short list.
The option, matched to the buyer
The nothing-to-repay option where it fits, the forgivable options where it does not, the repayable option where closing costs are the hurdle — chosen for the Johnson City, TN buyer, not by default.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Johnson City property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Johnson City, TN file where its credit, its first lien, and its property read best, subject to lender program eligibility.
Trusted by first-time buyers & families alike.
Johnson City down payment assistance FAQs
The questions a Johnson City, TN buyer asks before requesting an assistance review, answered plainly.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
The second-lien options have none; the nothing-to-repay option has an area income limit that a qualifying occupation, a first purchase, or an underserved tract can substitute for.
What first-time home buyer programs are available in Johnson City?
A Johnson City buyer can cover the FHA minimum investment through a nothing-to-repay option where offered, a forgivable second lien, or a repayable second lien that reaches closing costs; the calculator on this page sizes each one on a price you enter.
Do I have to pay the assistance back?
For a Johnson City buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
It depends on the option. The lowest floor belongs to the nothing-to-repay option; the second-lien options start higher, and the first lien’s own rules apply on top.
What is the repayable option and when does it make sense?
It is a loan — the only purchase option with a payment — in exchange for covering the most. A Johnson City buyer chooses it for the closing-cost coverage or the high-balance pairing.
Is there an option for refinancing?
For an existing FHA loan, yes — a repayable option sized on the balance, for a full refinance rather than a streamline.
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a Johnson City buyer eligible for more than one chooses the one that fits best.
Can I use the assistance on a second home or a rental?
Primary residences only. Investment properties and second homes are outside the program.
What is the rate on the mortgage and on the assistance?
A scenario review produces the actual terms; the calculator here shows an estimate at a benchmark rate you can change, with the assistance sized on the price you enter.
Talk through a Johnson City assistance file before the contract is signed.
No credit pull, no commitment: an initial review places your Johnson City purchase on the right option and tells you what to gather.
This guide covers Johnson City — for the statewide options, categories, and property rules, see Down Payment Assistance in Tennessee, part of Lendmire’s down payment assistance program.
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