First-Time Homebuyer Programs in Chattanooga, TN

Low and No Down Payment Options

Conventional Loans for First-Time Buyers

For qualified borrowers, some conventional loan programs allow little-to-no down payment options, making homeownership possible with minimal upfront costs. These programs typically feature flexible income guidelines, reduced mortgage insurance requirements, and fixed-rate stability.



Shelly helps first-time buyers in Chattanooga evaluate their eligibility and choose the best loan structure based on credit history, income, and long-term goals. By understanding each client’s unique financial situation, she ensures they receive a mortgage plan that supports affordability from day one.

THDA – Tennessee Housing Development Agency

Empowering Tennessee Residents to Own Homes

The THDA program offers first-time homebuyers across Tennessee affordable mortgage options paired with down payment assistance. These loans are designed to help moderate-income families achieve ownership without having to save for years before purchasing.



Home Loans With Shelly works directly with THDA programs to help eligible buyers apply for down payment and closing cost assistance, often in combination with FHA, VA, USDA, or conventional loans. With competitive fixed rates and forgiving qualification standards, THDA programs have made homeownership possible for thousands of Tennesseans — and Chattanooga buyers continue to benefit from this opportunity.

Georgia Dream Program

Affordable Solutions for Georgia Homebuyers

For clients purchasing just south of Chattanooga, the Georgia Dream Homeownership Program offers similar benefits, helping first-time buyers secure affordable financing with down payment assistance.



Shelly guides Georgia buyers through program eligibility, which includes income and purchase price limits, as well as education requirements designed to prepare homeowners for long-term success. The Georgia Dream program is especially popular for buyers seeking affordable housing in communities near the Tennessee border who may work or commute to Chattanooga.

HomeStart UHM – FHA Loan Program

Accessible FHA Financing With Low Credit Flexibility

The HomeStart UHM Program through Union Home Mortgage (UHM) offers first-time buyers an FHA-backed loan with added benefits, including lower down payment options and flexible qualification criteria.



What sets FHA financing apart is its accessibility — borrowers may qualify with credit scores as low as 500, depending on loan structure and compensating factors. This opens the door for buyers who are working on rebuilding credit or establishing a new financial foundation.

Shelly provides clear guidance on FHA requirements, from mortgage insurance to debt-to-income ratios, ensuring each borrower fully understands the program before moving forward.

USDA and VA Loan Options

Zero-Down Homeownership for Eligible Buyers

Both USDA and VA loans continue to be among the most powerful options for first-time homebuyers in and around Chattanooga.

USDA Loans allow eligible borrowers to purchase homes in qualifying rural or suburban areas with no down payment, affordable fixed interest rates, and reduced mortgage insurance.

VA Loans, available to veterans, active-duty military members, and surviving spouses, also feature zero down payment and no private mortgage insurance. Additionally, FHA and VA loans accept credit scores as low as 500, giving more buyers a chance to qualify and purchase a home with confidence.

Shelly helps clients determine eligibility, prepare required documentation, and understand long-term savings opportunities unique to each program.

UHM Grant Program

Helping Homebuyers With Upfront Costs

The UHM Grant Program provides qualified first-time buyers with grant funds that do not need to be repaid. These funds can be used toward down payment or closing costs, reducing out-of-pocket expenses at the time of purchase.



Shelly assists clients in determining eligibility for the UHM Grant Program, ensuring the grant is applied effectively to maximize affordability and homeownership success. This program pairs especially well with FHA and conventional financing for first-time buyers seeking additional support.