Buying your first home in Johnson City can feel exciting and overwhelming at the same time. You might be wondering how much you need for a down payment, which loan fits your budget, and how to compete in today’s market. You are not alone. Many Northeast Tennessee buyers start with the same questions and end up in a great home when they match the right program to their situation.

This guide breaks down Tennessee and federal first-time buyer programs, what to expect in Washington County, and how to plan your next steps with confidence. You will learn which options may fit your credit, income, and location. Let’s dive in.

First-time buyer programs in Tennessee

You have several strong options in Tennessee. Each has different advantages, eligibility rules, and tradeoffs. Start by comparing how each program aligns with your credit, down payment, income, and the area where you want to buy.

THDA Great Choice and DPA

The Tennessee Housing Development Agency’s Great Choice program offers 30-year fixed-rate mortgages and state down payment assistance through participating lenders. It can help if you want a stable loan and need help with upfront costs. Some options are open to first-time and qualifying repeat buyers, subject to program rules.

• What to check: income and purchase price limits for Washington County, whether the three-year “first-time” lookback applies to you, and how THDA down payment assistance is structured this year. You can verify details and find lenders on the THDA website.
• Local tip: Always review the current THDA income and purchase price limits for Washington County on the THDA site before you start house hunting.
• Tradeoffs: Assistance can lower your upfront cash, but it may add a second lien and rules about occupancy and repayment if you sell or refinance.

FHA loans

FHA loans are insured by the Federal Housing Administration and are popular with buyers who have limited savings or lower credit scores. FHA generally allows a 3.5% down payment for borrowers who meet its credit threshold. The home must meet FHA appraisal and condition standards.

• Good fit: Lower down payment and flexible credit.
• Cost note: FHA loans include upfront and annual mortgage insurance. Learn more on the HUD FHA page.

VA loans

If you are a veteran, active duty service member, or qualifying spouse, a VA loan can be a powerful option with no down payment required for many buyers. You will need a Certificate of Eligibility and to meet your lender’s credit and debt guidelines.

• Good fit: Eligible veterans and military families who want competitive rates and flexible terms.
• Cost note: A VA funding fee may apply unless exempt. See eligibility and COE steps on the VA Home Loan page.

USDA loans

USDA Single-Family programs offer 0% down financing for qualifying homes in eligible rural areas and for buyers under the program’s income limits. Parts of Washington County outside central Johnson City may qualify, so check specific addresses.

• Good fit: Buyers who meet household income limits and want to buy in a USDA-eligible location.
• How to verify: Explore programs on USDA Rural Development and test addresses using the USDA property eligibility tool.

Conventional low-down options

Conventional programs like Fannie Mae HomeReady and Freddie Mac Home Possible allow as little as 3% down for eligible buyers. With solid credit, these can offer a lower long-term cost than FHA because private mortgage insurance can be canceled once you reach about 20% equity.

• Good fit: Buyers with moderate to higher credit and a small down payment.
• Where to learn more: Fannie Mae HomeReady and Freddie Mac Home Possible.

Which program fits your situation?

Use these common scenarios to narrow your choices before you speak with a lender.

• Low credit, small savings: Consider FHA, and ask a participating lender whether THDA down payment assistance can be combined with your FHA loan under current rules.
• No down payment available: If you are eligible for VA, start there. If the home is in a USDA-eligible area and your household income qualifies, consider USDA. Otherwise, explore THDA assistance to reduce upfront costs.
• Good credit, small down payment: Compare conventional low-down options like HomeReady or Home Possible to FHA. Look at interest rate, mortgage insurance costs, and whether you could use THDA assistance with a conventional loan.
• Planning to move or refinance within a few years: Weigh mortgage insurance differences. FHA’s mortgage insurance can last longer depending on your down payment and term, while conventional PMI may be removable as you build equity.
• Self-employed or variable income: Lenders vary in how they document income. An experienced local lender can help you match your profile to the right program requirements.

Johnson City realities to keep in mind

• County-specific limits: THDA income and purchase price limits change and are set by county. Confirm Washington County limits on the THDA website before you write offers.
• USDA maps: Many in-city Johnson City neighborhoods will not qualify for USDA, but surrounding areas may. Always check the specific address using the USDA eligibility tool.
• Appraisals and repairs: FHA and VA appraisals evaluate condition. Older homes in Washington County may require repairs to satisfy standards. Build extra time into your contract for any needed work.
• Competitive dynamics: In lower-inventory pockets, sellers may favor simpler terms. If you need assistance, strengthen your offer with a strong pre-approval and realistic timelines.
• Local expertise: Work with a THDA participating lender or a local lender familiar with FHA, VA, USDA, and THDA in Tennessee. They will know Washington County nuances like taxes, HOAs, and flood zones.
• Housing counseling: If you want guidance before you apply, find a counselor through the HUD housing counseling directory.

Your step-by-step plan

1. Check what you may qualify for

• Are you a veteran? Review eligibility and how to obtain a COE on the VA Home Loan page.
• Is your desired property in a USDA-eligible area? Enter the address in the USDA property eligibility tool.
• Do you meet THDA income and purchase price limits for Washington County? Confirm current limits and lender participation on the THDA website.

2. Get pre-approved with the right lender

• Choose a lender experienced with the exact program you plan to use. For THDA loans or assistance, confirm they are a THDA participating lender.

3. Align your home search with program rules

• For FHA and VA, consider property condition early. For USDA, confirm eligibility for each address. For conventional, confirm any income limits for HomeReady or Home Possible.

4. Write a strong offer

• Include realistic appraisal and loan timelines. Ask your lender about program-specific timing, especially if THDA assistance is part of your plan.

5. Complete underwriting and close

• Respond quickly to document requests so your file stays on track. Plan for any repairs required by FHA or VA appraisals.

Document checklist

• Government ID
• Social Security number
• Recent pay stubs for 30 days
• W-2s for 2 years, and tax returns for 2 years if applicable
• Bank statements for the last 2 months
• Proof of assets for down payment and reserves
• Gift letter if funds are a gift
• VA Certificate of Eligibility, if applicable
• Purchase contract and property details once under contract

Typical timeline

• Pre-approval: 1 to 7 days
• Processing and underwriting: about 2 to 4 weeks
• Extra time: FHA or VA repairs and THDA assistance may add time. Ask your lender for current timelines.

Avoid common pitfalls

• Ignoring county limits: THDA income and purchase price thresholds are county-specific. Verify Washington County numbers early.
• Skipping the property check: For USDA, in-city addresses are often ineligible. Always run the address through the USDA map before you fall in love with a home.
• Underestimating appraisal requirements: FHA and VA may call for health and safety repairs. Budget time and funds if the home needs fixes.
• Overlooking long-term costs: Compare FHA mortgage insurance, VA funding fees, USDA guarantee fees, and conventional PMI carefully. Conventional PMI may be removable with equity, which can lower long-term costs.

Tools to help you get started

• Bold next steps you can take today:
  • Kim’s Buyer Guide — insert URL
  • Mortgage Calculator — insert URL

When you are ready to talk through options, local neighborhoods, and how to make a competitive offer, reach out for one-on-one guidance.

If you need a steady hand from first tour to closing table, connect with Kimberly Leonard. You will get local expertise, clear communication, and a plan that fits your budget and timeline.

FAQs

What first-time buyer programs exist in Johnson City, TN?

• Tennessee buyers often consider THDA Great Choice with down payment assistance, FHA, VA (for eligible veterans), USDA for eligible areas, and conventional low-down programs like HomeReady or Home Possible.

How do I check THDA income and price limits for Washington County?

• Visit the THDA website to review current Washington County income and purchase price limits and to find participating lenders.

Are USDA loans available inside Johnson City city limits?

• Many in-city neighborhoods are not USDA-eligible, but nearby areas may qualify; always verify a specific address using the USDA property eligibility tool.

What credit score do I need for a first home loan?

• FHA is flexible and often works for borrowers with scores starting around 580 for 3.5% down; VA and USDA have broad guidelines but lenders set overlays; conventional programs like HomeReady or Home Possible typically start around 620 to 640, depending on the lender.

What extra costs should I expect with these programs?

• FHA includes upfront and annual mortgage insurance; VA has a funding fee unless exempt; USDA has a guarantee fee; conventional loans require PMI above 80% loan-to-value but PMI can be canceled as you build equity.