The state housing finance agency surprised Montavon and his wife, Sasha, earlier this month with the announcement that they would be receiving the home.
"This is a gift for me to keep going in another positive direction," Sgt. Montavon told News 2.
The Executive Director of the Tennessee Housing Development Agency said it was a good day in the office for his staff.
"To a certain extent I really feel like everybody who serves in combat on this country's behalf, I really think that we owe them something when they come home and this is a small thing that our agency can do," Ralf Perrey said.
Volunteers, including the National Wood Flooring Association's community service team, began work on the home Saturday.
Staff Sgt. Montavon served in the U.S. Army receiving the Air Medal, Army Commendation Medal twice and other awards during his tours.
He served as a Flight Medic for a MEDEVAC Air Ambulance Company, evacuating and treating thousands of soldiers.
Montavon and his wife have settled in Clarksville since his retirement.
Operation Finally Home was established in 2005 as a nonpartisan nonprofit 501(c) (3) organization. The mission is to provide custom-built, mortgage-free homes to America's military heroes and the widows of the fallen.