Current down payment assistance guidelines, updated from one source.
These figures are read from Lendmire’s centralized down payment assistance standards source and update automatically when the programs change. Every state and city guide in this series reads the same source.
Of the purchase price
Measured on the purchase price or the appraised value, whichever is lower; the largest option covers the down payment and reaches closing costs, and the smaller options cover the 3.5% FHA minimum.
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.
Down payment assistance options are consumer mortgage programs arranged through select wholesale lenders, licensed in sixteen states, paired with FHA, USDA, or HUD-184 first liens. Assistance is stated as a percentage of price or value, never as a dollar figure a specific borrower would receive; the forgivable and repayable options are second liens with their own disclosures. Eligibility depends on the first lien’s approval, the option’s rules, the property, and full underwriting, subject to lender program eligibility. The calculator’s rate is an editable market benchmark, not a quote, and its payment is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is a mortgage broker and never the lender, and is not affiliated with or acting on behalf of FHA, VA, USDA, HUD, or the federal government.
What down payment assistance is — and how the options differ.
The first-time home buyer programs in Sevierville, TN answer the most common reason a qualified buyer does not close — the cash to close — with assistance measured on the price and shaped to the buyer’s situation.
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
The gap the program closes for a Sevierville buyer is the minimum investment: the assistance covers that share of the price, the first lien carries the rest, and the buyer’s own savings stay for the move.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Sevierville, TN cover the same minimum investment and differ in what the buyer owes afterward.
Credit floors, mortgage programs, and unit counts
Credit decides which options are open; the first lien decides which options attach; the property’s unit count and type decide which option carries it. The options table shows all three side by side.
Eligibility without a first-time-buyer rule
A Sevierville buyer who has owned before is eligible; the second-lien options carry no income limit and no first-time-buyer rule, and the nothing-to-repay option opens on any one of four categories.
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 Sevierville’s first-time and moderate-income buyers shop — and how the assistance fits.
The share of Sevierville, TN households that rent, the median home value, and the median household income together sketch the gap the assistance closes for a first purchase.
Citywide figures provide general market context, not an appraisal or an income calculation. Value and income rarely move at the same pace; the market figures below show how far Sevierville’s prices have moved against its incomes, and the calculator shows what that means for the minimum investment.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Sevierville submarkets, distinct property rules.
A down payment assistance file in Sevierville reads differently by submarket — condominium approval, association packages, unit counts, and USDA eligibility all shift from one to the next.
Workforce condominiums
Buyers in Sevierville’s condominium buildings use the program on approved projects, with the building’s status settled before the closing is scheduled. About 49% of Sevierville’s households rent — roughly 3,905 renter households, the pool the program exists for.
USDA-eligible edges
Outside Sevierville’s core, USDA-eligible areas pair a no-down-payment first lien with the second-lien assistance options, which then cover closing costs and prepaids. Median gross rent in Sevierville is about $1,081 a month — the payment many renters already carry.
County-limit homes
Resort-area prices in Sevierville push some first liens toward the county loan limit; above it, only the repayable options carry the assistance, and the nothing-to-repay option stops at the limit. Sevierville counts a population near 18K.
Townhome and PUD communities
Townhome communities in Sevierville pair with the program; the association’s dues and documents are reviewed with the first lien, and the assistance covers the minimum investment. Median household income in Sevierville sits near $52,421 on the latest Census estimate.
Manufactured homes on owned land
Manufactured housing on owned land near Sevierville is eligible, with the option decided by the home’s width and the land owned rather than leased. On a home at Sevierville’s median value, the FHA minimum investment comes to about $10,100 — the figure the assistance is built to cover.
Year-round neighborhoods
In a visitor economy like Sevierville’s, the program serves the people who staff it: a primary residence in a year-round neighborhood, the minimum investment covered. The median owner-occupied home value in Sevierville runs near $289,600 on the latest Census estimate.
None of this is a valuation or an approval; it is the backdrop a Sevierville file is read against before the first lien and the option decide the numbers.
Four ways Sevierville buyers put down payment assistance to work.
How Sevierville buyers put the program to work depends on the first lien, the property, and what the help needs to cover; these four paths cover most files.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Sevierville, the forgivable and repayable options pair with a no-down-payment first lien and cover closing costs and prepaids instead; HUD-184 first liens pair with the same options.
Buy a first home with the down payment covered
The most common Sevierville, 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 two-to-four-unit home and live in one unit
An owner-occupied duplex, triplex, or fourplex in Sevierville qualifies on the option that reaches four units; the buyer lives in one unit and the assistance covers the minimum investment on the whole building.
Cover the costs of an FHA refinance
A Sevierville homeowner refinancing an existing FHA loan can use the refinance-cost option, a repayable second lien sized on the balance, to cover closing costs and keep the first lien inside FHA limits.
Size the assistance on a Sevierville price before requesting a quote.
Run a Sevierville price through the options before you request a quote: the minimum investment, the assistance applied, what is left for closing costs, the mortgage insurance tier, and the estimated payment. Enter income to see the ratios a lender reads.
Sevierville FHA payment with assistance
Starting assumptions reflect Sevierville’s home values; change any field and the loan, the mortgage insurance, and the payment are recalculated.
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 $290,000 price near Sevierville’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.
Down payment assistance is one of four ways a Sevierville buyer covers the minimum investment; each has a different cost after closing.
Assistance on a government loan, saving the minimum, or a gift.
The structure for a Sevierville buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Sevierville, TN buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. 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 Sevierville file, and the closing costs are what the assistance covers. For the USDA first lien, see the USDA loan program.
Choose by what you have: cash for the minimum investment, family who can gift it, a USDA-eligible property, or none of those — the assistance is for the last case, and the most common one.
What to prepare for a Sevierville scenario review.
The documents a lender reads first on an assistance file.
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.
The assistance is the easy part; the rules around it are where Sevierville, TN files stall. These are the ones that most often change a file’s shape.
Use these checks to keep the Sevierville file clean and fundable.
Before making an offer on a Sevierville, TN home, confirm the option, the county loan limit, and the property’s unit count and type.
- Know the option: confirm the option is offered in the state.
- Confirm the category: remember that the second-lien options carry no income limit.
- 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 Sevierville, 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 Sevierville 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 balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
Property type and unit count select the option
The property itself can move a Sevierville, TN file: a fourplex, a single-width manufactured home, or an unapproved condominium project each changes which option can attach, so the address is read before the option is promised.
From a Sevierville pre-approval to keys with the assistance in place.
Lendmire runs a Sevierville assistance file in a set order: pick the option, match the first lien, clear the property, close both liens together.
Pick the option
Lendmire reads the Sevierville 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 Sevierville 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
Final underwriting reads the whole Sevierville, TN file against the first lien’s rules and the option’s; the loan funds with the assistance in place and the second lien, where there is one, recorded behind it.
A brokerage that pairs the assistance to the loan.
An assistance file rewards preparation, and preparation is what a brokerage built for first-time and moderate-income buyers provides.
The option, matched to the buyer
A Sevierville scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Sevierville 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
A Sevierville file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
Sevierville down payment assistance FAQs
Straight answers for Sevierville buyers weighing down payment assistance; the mortgage approval and the option’s rules decide every actual figure.
Do I have to be a first-time homebuyer?
No option requires it. A Sevierville buyer who has owned before qualifies for the second-lien options on credit, first lien, and property alone, and for the nothing-to-repay option through any of the other categories.
Is there an income limit?
A Sevierville buyer above the area income limit still reaches the nothing-to-repay option through an occupation, a first purchase, or the tract, and reaches the second-lien options regardless of income.
What first-time home buyer programs are available in Sevierville?
Assistance measured as a percentage of the price, in shapes that differ by what you owe afterward: nothing, nothing if the first lien stays current, or a second loan with a balloon. Credit, the first lien, the property, and the eligibility category decide which fits.
Do I have to pay the assistance back?
For a Sevierville 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?
A Sevierville buyer’s credit tier decides which options are open — the options table on this page shows the floor for every option offered in Tennessee.
Is there an option for refinancing?
The refinance-cost option covers the costs of an FHA refinance with a repayable second lien, at its own credit floor and combined-leverage limit.
Can I buy a duplex or a fourplex with assistance?
Two units on the second-lien options, up to four on the nothing-to-repay option, always with the buyer living in one of them.
What is the rate on the mortgage and on the assistance?
It depends on the first lien, the option, and the file; the rate shown in the calculator is an editable market benchmark, not a quote, and the payment it produces is an illustrative estimate. A scenario review produces the terms.
Do I need a homebuyer education course?
Only the nothing-to-repay option requires it; the certificate is part of that file.
How does a forgivable second lien work — the small second loan behind the mortgage?
A lien that costs nothing to carry and disappears on schedule; the clock runs with the first lien’s payments.
Ready to size the assistance on a Sevierville home? Start with the price.
Start with the price, the first lien you expect, and your credit tier. No credit pull or commitment is required to request an initial scenario review.
This guide covers Sevierville — for the statewide options, categories, and property rules, see Down Payment Assistance in Tennessee, part of Lendmire’s down payment assistance program.
Also in Tennessee: Columbia · Hendersonville · Bristol · Franklin · FHA Loans · USDA Loans