Everything you need to know about buying your first home in Morristown, Tennessee — programs, assistance, and real steps to get started.
These aren't gimmicks — they're federal and state programs specifically designed for people in your exact situation. Here are the ones that apply to Morristown.
The gold standard for rural homebuyers. The USDA offers two loan types — both with zero down payment. Parts of Morristown (especially outside city center in ZIP codes 37813 & 37814) qualify as USDA-eligible areas. The Direct Loan version has no minimum credit score and rates as low as 1%.
Tennessee's own homebuyer program pairs a competitive fixed-rate mortgage with up to $15,000 in down payment assistance. Morristown ZIP 37813 is a THDA "targeted area," which means extra benefits. Works with FHA, VA, or USDA loan types.
FHA is your best friend if your credit score is between 500 and 639. With a 580+ score, you only need 3.5% down. The FHA loan limit for Hamblen County is $524,225, way above the area's median home price of ~$238,000.
A newer grant program offering up to $25,000 in down payment assistance for first-time, first-generation homebuyers in East Tennessee. Only requires a $500 personal contribution. Can be combined with FHA, USDA, or THDA loans.
Habitat is headquartered right in Morristown and serves Hamblen County. Their model is different: you contribute sweat equity (helping build homes), and in return you get a 0% interest mortgage with payments capped at 30% of your income. No minimum credit score.
Tennessee's Community Assistance Corporation is based right in Morristown at 740 E Main Street. They help low-income residents build affordable new homes, navigate grant funding for closing costs, and connect with credit repair resources.
Your credit score is the single biggest factor in which programs you can access. Here's what opens up at each level.
Habitat for Humanity has no credit minimum. The USDA Direct Loan also has no official credit floor and evaluates nontraditional credit like rent and utility payments. Contact a HUD-approved housing counselor (free) to start building your credit — call 800-569-4287. Also reach out to TCAC in Morristown (423-586-7636) for credit repair guidance.
At 580+, FHA loans become available with only 3.5% down. You can also explore the Fahe Rise Up program for up to $25,000 in down payment help. Shop multiple lenders — some work with scores as low as 540–560. Getting to 640 is the magic number that opens everything else.
The full toolkit opens up: THDA Great Choice with up to $15,000 in down payment assistance, USDA Guaranteed Loan with $0 down, plus FHA and Fahe Rise Up. You can even stack programs — a THDA loan using FHA financing combined with Rise Up grants could cover your entire down payment and closing costs.
All the key numbers in one place so you can see what fits.
| Program | Min. Credit | Down Payment | Key Advantage |
|---|---|---|---|
| Habitat for Humanity | None | $0 (sweat equity) | 0% interest mortgage |
| USDA Direct Loan | None | $0 | Rate as low as 1% |
| FHA (500–579) | 500 | 10% | Available to very low credit |
| FHA (580+) | 580 | 3.5% | Widest lender acceptance |
| USDA Guaranteed | 640 | $0 | Zero down, low fees |
| THDA Great Choice + DPA | 640 | Effectively $0 w/ DPA | Up to $15K assistance |
| Fahe Rise Up | Varies | $500 personal min. | Up to $25K grant |
These organizations are either headquartered in Morristown or serve Hamblen County directly. Real people, real phone numbers.
4730 New Harvest Ln, Ste 300
Knoxville, TN 37918
Free pre-purchase counseling
and credit coaching
Check if a specific address qualifies for USDA financing
Great Choice loans & down payment assistance info
Up to $25,000 in down payment grant assistance
Build Your Own Home program & credit help
Required course — as low as $25 online
0% interest mortgage, no credit min.