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Tennessee Mortgage Guides

TN
State Mortgage Guides

Tennessee Mortgage Guides 2026

This complete Tennessee mortgage guide covers FHA loan limits by county, THDA Great Choice down payment assistance, USDA rural loans, VA resources for Tennessee’s veteran and military community, and a complete closing cost breakdown — all in one place.

$1,029,2502026 FHA limit (Nashville MSA)
Up to $15,000THDA Great Choice Plus assistance
0.7%-1.3%Est. effective property tax rate
1–3%Typical buyer closing costs

Everything You Need for a Tennessee Home Purchase

Six in-depth guides covering every aspect of getting a mortgage in Tennessee — from loan program selection to what you’ll pay at closing.

Key Tennessee Mortgage Guide Facts

FHA Loan Limits (2026)

  • Nashville-Davidson-Murfreesboro-Franklin MSA (14 counties): $1,029,250
  • All other 81 Tennessee counties, including Shelby (Memphis), Knox (Knoxville), and Hamilton (Chattanooga): $541,287
  • Confirm your county at HUD’s official lookup
Full FHA limits →

Down Payment Assistance

  • THDA Great Choice Plus: deferred option up to $10,000 (0% interest, forgiven after 10 years) or amortizing option up to 5% of sales price (max $15,000)
  • Min credit score 640; income and purchase price limits vary by county
  • Homeownership for Heroes: reduced rate and waived first-time buyer requirement for veterans, military, and first responders
  • Current terms at thda.org
First-time buyer guide →

Property Taxes

  • Effective rate roughly 0.7%–1.3% depending on county (Est.) — among the lower rates nationally
  • Assessed at 25% of appraised value for residential property, then local tax rates apply
  • No state income tax on wages, which helps offset overall Tennessee housing costs
  • Details at the Tennessee Comptroller’s Office
Full tax guide →

Closing Costs

  • Buyer closing costs: 1–3% of purchase price (Est.)
  • State recordation (transfer) tax: $0.37 per $100 of value
  • State mortgage tax: $0.115 per $100 of the indebtedness secured
  • Title-company closings — Tennessee does not require an attorney, though many buyers and sellers still choose to use one
Full closing cost guide →

Buying or Refinancing in Tennessee?

Tennessee offers strong THDA assistance for first-time and repeat buyers, no state income tax, and a straightforward title-company closing process. Our guides above break down all of it, and every figure links to the official source so you can verify current terms.

  • ✓ Check Great Choice Plus eligibility and current terms at thda.org
  • ✓ Confirm your county’s 2026 FHA limit with HUD’s lookup tool
  • ✓ Compare FHA vs. conventional using our loan program guides
  • ✓ Estimate your total cash to close with our closing cost guide

Coming soon  ·  No obligation  ·  Educational first

Tennessee Advisor Network — Coming Soon

We currently connect buyers with licensed mortgage advisors in Florida and Utah. Tennessee is on our expansion list. In the meantime, our Tennessee guides and the official program links above have everything you need to research your purchase.

Join the Tennessee Waitlist