First-Time Homebuyer Programs in Lebanon, TN (2025 Update)

Buying your first home in Lebanon, Tennessee? You’re not alone—and the good news is, there are real programs that can save you thousands in 2025 if you know where to look.

This guide walks you through the best local, state, and national first-time homebuyer incentives available right now in Lebanon, TN—plus how to take advantage of them.

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🎯 Why First-Time Homebuyers in Lebanon Need an Edge

Lebanon’s real estate market is growing fast. With new construction and rising demand, entry-level buyers need every advantage to stay competitive, and affording that first down payment is often the biggest hurdle.

Thankfully, 2025 is shaping up to be a year with strong financial aid options for first-time homebuyers in Tennessee.

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🏛️ 1. Tennessee Housing Development Agency (THDA) Programs

The THDA offers one of the most powerful tools available to first-time buyers in Tennessee:

✅ Great Choice Home Loan

• 30-year fixed rate

• Low interest rates

• Can be used with FHA, VA, USDA, or conventional loans

✅ Down Payment Assistance (DPA)

• Up to $6,000 in down payment or closing cost assistance

• Comes as a second mortgage with 0% interest and deferred payments

Eligibility:

• Credit score of 640+

• Income and price limits apply (based on household size and county)

• Must complete a homebuyer education course (online or in-person)

👉 Visit thda.org for current terms and availability.

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🏦 2. Local Credit Unions and Banks in Lebanon, TN

Many local lenders are offering first-time buyer incentives in 2025 that go beyond state programs.

Some examples include:

• Wilson Bank & Trust: Community-based mortgage counseling

• Ascend Federal Credit Union: Low-down conventional loans for members

• Pinnacle Financial Partners: First-time buyer loan options with competitive terms

Tip: Ask your realtor to help you compare local lenders who participate in THDA and offer personalized support.

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🌎 3. National Programs Still Going Strong in 2025

Don’t forget the big three:

• FHA Loans – As little as 3.5% down

• USDA Loans – 0% down for homes in eligible rural areas (parts of Lebanon qualify)

• VA Loans – 0% down, no PMI (for eligible veterans/military families)

These programs are still popular choices for first-time buyers and can be stacked with local/state assistance in many cases.

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💡 Bonus: What Counts as a “First-Time Buyer”?

The definition may surprise you:

If you haven’t owned a home in the past 3 years, you may qualify again.

This is key for those re-entering the market after renting.

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🤝 Why Your Realtor Matters

Navigating all these programs takes experience, and not every realtor knows how to leverage them to your advantage.

A local agent who understands the 2025 financial assistance landscape in Lebanon can:

• Help you qualify for the best programs

• Find USDA-eligible homes

• Connect you with reliable, approved lenders

• Make sure you don’t leave free money on the table

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📌 Ready to Buy in 2025?

If you’re planning to buy a home in Lebanon, TN, this year, now is the time to:

1. Get pre-qualified

2. Research programs like THDA

3. Work with a local expert who knows the ins and outs of Lebanon’s market

Want the full picture?

👉 Click here to return to the Lebanon Home Buying Guide 2025

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