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.
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.
Tennessee Mortgage Guide
FHA loan limits by county, loan programs, THDA Great Choice assistance, property taxes, and the 2026 Tennessee housing market overview covering Nashville, Memphis, Knoxville, and Chattanooga.
Read guide →Tennessee First-Time Home Buyer Guide
THDA’s Great Choice and Great Choice Plus down payment assistance, Homeownership for Heroes, and income and purchase price limits explained.
Read guide →Tennessee FHA Loan Requirements
2026 FHA limits for the Nashville metro and all other Tennessee counties — credit score requirements, MIP, and how FHA competes in Tennessee’s market.
Read guide →Tennessee VA Loan Requirements
VA loan benefits for Tennessee veterans — no down payment, no PMI, the 2026 funding fee, and the military installations at Fort Campbell, Millington and Arnold Air Force Base.
Read guide →Tennessee USDA Loans
USDA income limits, how to check a Tennessee address for eligibility, and USDA’s fees and requirements explained.
Read guide →Tennessee Closing Costs Guide
Tennessee’s realty transfer and mortgage taxes, statutory recording fees, and what buyers and sellers pay at closing.
Read guide →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
Down Payment Assistance
- THDA Great Choice Plus: deferred option up to $6,000 or $10,000 (0% interest, forgiven after 10 years) or amortizing option up to 5% of sales price (max $15,000)
- Newly built or proposed construction: up to $25,000 (15-year, 0% interest)
- Min credit score 640; income and purchase price limits vary by county
- Homeownership for Heroes: reduced rate for eligible military, veterans, first responders, educators and law enforcement; first-time buyer requirement waived for qualified military and veterans
- Current terms at thda.org
Property Taxes
- Est. effective rate: 0.50% (median tax bill $1,442 ÷ median home value $286,700, Census ACS 2020–2024)
- Residential property is assessed at 25% of appraised value, then local tax rates apply
- No state income tax on earned income (Tennessee Department of Revenue)
- Details at the Tennessee Comptroller’s Office
Closing Costs
- State realty transfer tax: $0.37 per $100 of purchase price, paid by the buyer
- State mortgage tax: $0.115 per $100 of indebtedness; the first $2,000 is exempt
- Recording: $5 per page ($10 minimum) plus a $2 data processing fee
- Rates at the Tennessee Department of Revenue
Buying or Refinancing in Tennessee?
THDA’s Great Choice program offers assistance for eligible first-time and repeat buyers, and Tennessee has no state income tax on earned income. Our guides above break down programs, limits and closing costs, with links to official sources 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
No obligation · Educational first
Talk to a Tennessee Mortgage Advisor
Have questions about buying or refinancing in Tennessee? A licensed mortgage advisor can walk you through your loan options, assistance programs and costs, with no obligation.
Speak to a Mortgage Advisor