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Charming downtown in a small town

How to Buy a Home in Dickson, TN

as a First-Time Buyer

Are you looking to put down roots in a welcoming small town with easy access to Nashville?

Dickson, Tennessee, offers charm, affordability, and convenience, making it an ideal place for first-time homebuyers.

With new construction homes in Dickson qualifying for many federal and state assistance programs, your dream of homeownership could be closer than you think.

In this guide, we'll walk you through down payment assistance options, loan programs for first-time buyers, and financial incentives available to first-time buyers in Dickson.

Down Payment Assistance Programs in Dickson

Down payment assistance can make your upfront costs more manageable and get you into your new home faster. Here are two key programs available in Tennessee:

Tennessee Housing Development Agency (THDA) Down Payment Assistance

The THDA's Down Payment Assistance is widely used by first-time homebuyers in Tennessee. This assistance comes in two forms:

Deferred Option (No Payments)
  1. $6,000 as a forgivable second mortgage
  2. 0% interest
  3. Forgiven after 30 years (unless you sell or refinance first)
Amortizing Option (Monthly Payments)
  1. Up to 5% of the purchase price (max $15,000)
  2. 30-year term
  3. Same interest rate as the first mortgage

To qualify, you must:

  1. Complete a Homebuyer Education course (in-person or virtual) with a THDA-approved instructor
  2. Have a minimum credit score of 640

The Housing Fund

This Tennessee-based nonprofit offers secondary loans of up to $35,000 to help with down payments for low- to moderate-income families. Interest rates range from 5% to 8%, depending on your income level, and loan terms are generally 10–15 years.

To qualify, you must:

  1. Use the home as your primary residence
  2. Work with an FHA-approved mortgage lender.
  3. Complete a THDA-certified homebuyer course.
  4. Contribute at least 1% of the purchase price.
  5. Have no bankruptcies within the past 3 years
  6. Meet income limits (up to $90,450, depending on household size in Dickson)

Click here to view the income limits for Dickson, TN.

Home Loan Options for First-Time Buyers in Dickson

Alongside down payment help, Tennessee offers favorable mortgage options for first-time buyers who qualify.

Buyers who don't qualify for down payment assistance will be happy to know that LGI Homes offers builder-paid closing costs for new home buyers in Dickson.

Details on the Home Loan Program

This 30-year, fixed-rate loan helps make monthly payments more affordable. FHA or USDA insures it and allows you to put as little as 3.5% down if you qualify.

To be eligible:

  1. Credit score must be 640 or higher
  2. You must meet income and home price limits.
  3. Completion of a homebuyer education course is required

As of June 2025, income limits for Dickson, TN are:

  1. $128,280 for couples
  2. $149,660 for families
  3. The purchase price cap is currently $400,000 (LGI Homes are priced from the high $360s at the time of this writing)

Once approved, you'll enjoy builder-paid closing costs with LGI Homes or down payment assistance from THDA's program.

Homeownership for Heroes Loan Program

This THDA program provides special loan terms for:

  1. Veterans
  2. Active military & National Guard
  3. Firefighters, EMTs, and law enforcement

It includes a 0.5% interest rate discount on a 30-year fixed loan backed by FHA or VA. With VA loans, you can finance up to 100% of the home's value.

Eligibility requirements remain the same:

  1. 640+ credit score
  2. Completion of homebuyer education
  3. Must meet income and price limits

Federal Loan Options for First-Time Buyers in Dickson

Even if you don't qualify for state-specific programs, there are federal loans that can help you purchase a new construction home:

Conventional Loans
  1. Competitive rates and terms
  2. Often require higher credit scores and down payments.
FHA Loans
  1. Lower down payment (as low as 3.5%)
  2. More lenient credit requirements
  3. Higher mortgage insurance premiums
VA Loans
  1. No down payment for eligible veterans
  2. Reduced insurance costs
  3. Requires a VA eligibility certificate
USDA Loans
  1. No down payment required
  2. USDA loans are limited to rural areas like Dickson
  3. Must meet income and credit requirements

These federal loans are often combined with THDA or nonprofit programs to reduce upfront costs further.

Proposed Federal First-Time Homebuyer Tax Credit

Pending federal legislation, the First-Time Homebuyer Tax Credit could offer up to a $15,000 tax credit for first-time buyers.

If Congress passes the bill, it could cover expenses like closing costs or a down payment if passed. Key requirements would include:

  1. No homeownership in the past 3 years
  2. Household income below the area median
  3. Home purchase price ≤ 110% of the local median
  4. Age 18+ and not buying from a relative

The credit amount would adjust with inflation, potentially reaching $17,000 by 2028.

Let's Build Your Future in Dickson, TN

Buying your first home doesn't have to feel overwhelming. With state and federal support, you could qualify for low-interest loans, down payment help, and even tax credits, bringing homeownership within reach sooner than you might think.

As a trusted Tennessee homebuilder, we're here to walk with you every step of the way. From choosing the perfect floor plan to navigating your financing options, our team is ready to help you move into an affordable new construction home that fits your life and budget, and help you find family-friendly things to do in Dickson.

Browse our Dickson communities or connect with a New Home Consultant today to schedule a tour.

 

We're looking forward to helping you find the home of your dreams.