In the ever-evolving landscape of Nashville's real estate market, finding an affordable place to call home can seem like a daunting task. However, for prospective homebuyers on a budget, there are pockets of affordability within Davidson County that might just be the perfect fit. And there are loan programs that can help turn your homeownership dream into a reality with fewer financial hurdles than you might expect.
In 2023, there were seven zip codes in Davidson County boasting median home sale prices under $400,000.
- Priest Lake (37217) - Median Price: $305,000
- Madison (37115) - Median Price: $321,000
- Old Hickory (37138) - Median Price: $344,812
- Antioch (37013) - Median Price: $359,900
- Goodlettsville (37072) - Median Price: $366,616
- Donelson (37214) - Median Price: $373,450
- North Nashville (37207) - Median Price: $383,750
Even in the most affordable areas, costs associated with purchasing a home keep many renting. But there are resources available. The Tennessee Housing Development Agency (THDA) offers the Great Choice Loan Program, designed to help potential homeowners cover down payment and other costs. Here are the program's key features:
Low Down Payment: Qualified buyers can take advantage of a 3.5% down payment at a fixed rate.
Assistance for Down Payment and Closing Costs: The program offers $6,000 or 6% of the purchase price, which can be applied toward down payment and/or closing costs. Maximum purchase price in Davidson County is $400,000.
Income Limits: One or two-person households can earn up to $119,760, while three-plus person households can earn up to $139,720.
Credit Score: A minimum credit score of 640 is required.
With the Great Choice Loan program, buyers can leverage the 6% assistance to cover their down payment and other costs. They also have the ability to negotiate that the seller pay any additional costs on their behalf, potentially leading to very limited or no out-of-pocket expenses.
But, as interest rates continue to decline, more buyers will enter the market, creating competition for existing inventory. With the Federal Reserve planning to reduce interest rates multiple times in 2024, this could be the prime opportunity for entry-level buyers to secure a home.
For more information about the Great Choice Loan Program, visit THDA.org.
Kevin Wilson is President of Greater Nashville Realtors. A Realtor is a member of the National Association of Realtors who subscribes to its strict code of ethics. You can reach Kevin at 615.390.5065 or kevin@ourhousenashville.com.
