Tennessee VA Loan Requirements 2026
This guide to Tennessee VA loan requirements covers benefits for Tennessee veterans and active-duty service members — no down payment, no PMI, competitive rates, and how Tennessee’s large military community uses VA financing near Fort Campbell, Millington, and beyond.
VA Loan Eligibility
| Service Category | Minimum Service Requirement |
|---|---|
| Active duty (wartime) | 90 continuous days |
| Active duty (peacetime) | 181 continuous days |
| National Guard / Reserves | 6 years, or 90 days active duty under Title 10 |
| Surviving spouse | Spouse of veteran who died in service or from service-connected disability |
Tennessee National Guard members qualify. Tennessee Army and Air National Guard members who have completed 6 years of satisfactory service, or have been activated under federal Title 10 orders for at least 90 days, are eligible for VA loan benefits. Active duty personnel stationed at Fort Campbell, Naval Support Activity Mid-South (Millington), Arnold Air Force Base (Tullahoma), or the McGhee Tyson Air National Guard Base (Knoxville) qualify immediately upon meeting the active duty service requirement.
VA Loan Benefits in Tennessee
Tennessee has a significant active-duty and veteran population, anchored by Fort Campbell (home to the 101st Airborne Division, on the Tennessee-Kentucky border near Clarksville), Naval Support Activity Mid-South in Millington, Arnold Air Force Base in Tullahoma, and the McGhee Tyson Air National Guard Base in Knoxville. VA loans are widely used and accepted throughout Tennessee’s housing markets.
- No down payment required — 100% financing with full entitlement
- No private mortgage insurance (PMI) — Saves significantly on Tennessee’s mid-range home prices
- No VA loan limit with full entitlement — Purchase any-priced home with zero down
- Homeownership for Heroes: THDA’s program for veterans and military offers a reduced interest rate and a statewide waiver of the first-time buyer requirement when paired with a VA loan
- Competitive rates — Typically 0.25%–0.50% below conventional rates
Tennessee VA Loan Requirements Overview
| Requirement | VA Standard | Notes |
|---|---|---|
| Certificate of Eligibility (COE) | Required | Lender can obtain on your behalf in most cases |
| Credit score | No VA minimum | Most Tennessee lenders require 580–620+; THDA Great Choice requires 640 |
| Debt-to-income ratio | VA guideline: 41%; lenders may approve higher | Residual income also evaluated |
| Primary residence | Required — VA is for owner-occupied only | Must occupy within 60 days of closing |
| VA appraisal | Required — separate from inspection | VA appraiser assigned by VA regional office |
| Property type | 1–4 family, approved condos, manufactured homes on owned land | Manufactured homes must be on owned land, not leased |
VA Funding Fee
| Down Payment | First Use | Subsequent Use |
|---|---|---|
| 0% (no down payment) | 2.15% | 3.30% |
| 5% or more | 1.50% | 1.50% |
| 10% or more | 1.25% | 1.25% |
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing VA with Tennessee Program Down Payment Assistance
Tennessee veterans can combine a VA loan with THDA’s Homeownership for Heroes program, which layers additional benefits on top of standard VA financing — even though VA loans already require no down payment.
| Feature | Standalone VA Loan | VA + Homeownership for Heroes |
|---|---|---|
| Down payment | 0% with full entitlement | 0%; can finance up to 100% of purchase price |
| Interest rate | Standard VA-eligible rate | Reduced rate versus standard Great Choice pricing |
| First-time buyer requirement | Not applicable to VA itself | Waived statewide for qualified military and veterans |
| Min credit score | Lender overlay, typically 580–620 | 640 (THDA program minimum) |
Ask your THDA-participating lender whether combining VA financing with Homeownership for Heroes makes sense for your situation — it can help preserve cash reserves and secure a lower rate even though a down payment isn’t required. Confirm current terms at thda.org.
