County Hub — Davidson County, Tennessee
Davidson County, TN Mortgage & Home Loan Guide
Nashville · Belle Meade · Berry Hill · Forest Hills · Goodlettsville · Oak Hill · Ridgetop · Urban and General Services Districts
Two things decide what a Davidson County purchase costs you, and neither is the sale price. The first is that USDA financing does not exist here — not partly, not depending on the street: every acre of the county is inside a USDA-ineligible area. The second is the Urban Services District line, which changes your tax rate without changing anything about the house. This page covers both, plus the 2026 loan limits and Davidson’s THDA numbers.
Valor Mortgage is an independent broker based in Springfield, half an hour north. Christopher Armantrout (NMLS #1210804) has financed Middle Tennessee homes since 2015 and works with dozens of wholesale lenders rather than a single bank’s product shelf.
Christopher Armantrout — Valor Mortgage
615.671.9178 | christopher@valor.mortgage
724 S Main St, Springfield, TN 37172 | Sun–Thu 8am–5pm | Fri 8am–3pm
USDA Eligibility in Davidson County: A Flat No
Most county guides hedge on this. Davidson does not require hedging. Measured against USDA Rural Development’s own published boundaries, 100% of Davidson County’s land area is USDA-ineligible — every sample, every municipality, no exceptions.
| City / area | USDA eligible? | Notes |
|---|---|---|
| Nashville-Davidson (balance) | No | All 475.6 sq mi ineligible. |
| Belle Meade | No | Entirely inside the ineligible area. |
| Berry Hill | No | Entirely inside the ineligible area. |
| Forest Hills | No | Entirely inside the ineligible area. |
| Oak Hill | No | Entirely inside the ineligible area. |
| Unincorporated county | No | There is no eligible pocket anywhere in Davidson County. |
Source: USDA Rural Development, Single Family Housing ineligible-area boundaries (RHS SFH/MFH layer, boundary effective 25 July 2023), measured against U.S. Census Bureau city limits. Checked 1 September 2026.
What this means for loan program selection
USDA is a property-eligibility program, so where it is unavailable it is unavailable to every applicant equally. In Davidson County no address qualifies.
VA financing has no geographic eligibility test at all. For a borrower with entitlement, zero down works anywhere in Davidson County.
For everyone else the zero-down route is not available here, and the practical options are FHA at 3.5% down or conventional from 3% for many first-time buyers, often paired with THDA assistance. We will price those side by side.
2026 Loan Limits for Davidson County
Davidson anchors the Nashville–Davidson–Murfreesboro–Franklin metropolitan statistical area, and its limits are the highest in Middle Tennessee.
| Program | 2026 limit, 1-unit | What it means here |
|---|---|---|
| FHA | $1,029,250 | Well above the $541,287 national floor. FHA reaches far further into the Nashville market than most buyers assume. |
| Conventional / conforming | $1,029,250 | Davidson is a designated high-cost area, $196,500 above the $832,750 national baseline. |
| VA | No limit | With full entitlement there is no VA loan limit. In a market at these price points that matters more here than anywhere else on this site. |
| USDA | Not available | No eligible area in the county. |
FHA and conforming figures: HUD FHA Mortgage Limits lookup, Davidson County TN, limit year CY2026, last revised 1 January 2026. Retrieved 1 September 2026.
Multi-unit limits for Davidson County in 2026: $1,317,650 duplex, $1,592,700 triplex, $1,979,350 fourplex, on both FHA and conforming. Given how much of Nashville’s housing stock is two-to-four units, that conforming duplex limit is worth knowing before anyone quotes you an investment-property rate.
Property Taxes: The USD / GSD Line
Metro Nashville is a consolidated city-county with two general tax rates. The General Services District rate applies countywide. Inside the Urban Services District — roughly the older, denser core that receives Metro trash pickup, street lights and sidewalks — an additional increment applies on top.
Tennessee assesses residential property at 25% of appraised value, so both rates run against $100,000 of assessed value on a $400,000 home.
Worked example — a $400,000 home
In the GSD: $100,000 assessed × $2.782 per $100 = $2,782 a year, $231.83 a month.
In the USD: $2.814 per $100 = $2,814 a year, $234.50 a month. The USD premium is real but small — about $2.67 a month on this example. The services it buys are usually worth more than that.
The satellite cities are where the number actually moves. Inside Goodlettsville the combined rate is $3.2888, or $274.07 a month — $42 a month more than the GSD.
| Jurisdiction | City rate | County rate | Combined | Tax on a $400k home |
|---|---|---|---|---|
| General Services District (GSD) | — | $2.782 | $2.7820 | $2,782.00 / yr · $231.83 / mo |
| Urban Services District (USD) | 0.0320 | $2.782 | $2.8140 | $2,814.00 / yr · $234.50 / mo |
| Belle Meade | 0.3011 | $2.782 | $3.0831 | $3,083.10 / yr · $256.93 / mo |
| Ridgetop | 0.3490 | $2.782 | $3.1310 | $3,131.00 / yr · $260.92 / mo |
| Goodlettsville | 0.5068 | $2.782 | $3.2888 | $3,288.80 / yr · $274.07 / mo |
Rates per $100 of assessed value. Source: Tennessee Comptroller of the Treasury, Property Tax Rates, tax year 2025 — the most recent year the state has published. Retrieved 1 September 2026. Rates reset after reappraisal cycles; confirm with the county trustee and your city before relying on them for a closing figure. Davidson’s USD and GSD rates are confirmed against the Metro Nashville Office of the Property Assessor, tax year 2025.
Three Davidson cities levy no city property tax at all
Berry Hill, Forest Hills and Oak Hill are incorporated but carry no city property tax rate in the state’s 2025 table — residents pay the Metro rate only. Belle Meade, Goodlettsville and Ridgetop do levy one. If you are comparing two houses in different satellite cities, that is a line item worth checking before you write the offer.
Tennessee has no state income tax. For buyers relocating from a state that does, your gross income is unchanged and your debt-to-income ratio is still calculated on gross — but what a given payment feels like in practice is not.
Down Payment Assistance for Davidson County Buyers
THDA sets its assistance limits by county. Davidson’s are at the top of the state’s range.
| THDA limit — Davidson County | Amount |
|---|---|
| Acquisition cost limit (max purchase price) | $500,000 |
| Household income limit — 1–2 persons | $139,320 |
| Household income limit — 3 or more persons | $162,540 |
Source: THDA Acquisition Cost & Income Limits by County, Great Choice and HFA Advantage mortgage loan programs, effective 1 August 2026. Retrieved 1 September 2026.
Davidson has targeted census tracts — and a lot of them
THDA flags Davidson County as containing targeted census tracts, where the first-time homebuyer requirement is waived. If you have owned a home before and assumed Great Choice was closed to you, that assumption may be wrong at a specific address. It is decided tract by tract, not countywide, and it takes about a minute to check.
Note the interaction with the acquisition limit: at $500,000 in a market where a lot of inventory sits above that, the purchase price cap will bind before the income cap does for many Davidson buyers. Worth knowing which constraint you are actually up against.
The programs worth knowing
Great Choice Home Loan — 30-year fixed with assistance attached, governed by the county limits above. Homeownership for the Brave — a reduced-rate track for military, veterans and first responders, worth comparing against VA financing rather than assuming. Great Choice Plus — the assistance component in deferred and amortizing forms, quoted from THDA’s current program guide at the time we price your file.
Options for Self-Employed and Commission-Based Borrowers
A tax return that understates what you earn is a documentation problem, not a qualification problem. Non-QM programs exist for exactly that: bank statement loans, asset depletion, DSCR for investment property, and 1099 programs. Being declined by a retail bank is not the same as not qualifying, and it is worth a second look at the file.
What a Davidson County Purchase Actually Costs
We are not quoting an interest rate on a web page. But everything around the rate is knowable in advance — and in Davidson, taxes and insurance are where the payment moves.
| Cost component | What to expect in Davidson County |
|---|---|
| Down payment | USDA 0% · VA 0% · FHA 3.5% · conventional 3–5% for many first-time buyers. Which of these you can use is decided partly by the address, per the USDA section above. |
| Property tax | $231.83 to $274.07 a month on a $400,000 home depending on where the property sits. Use the stacking table above for your specific jurisdiction. |
| Homeowners insurance | Middle Tennessee carries real wind and hail exposure and carriers have tightened deductibles on it. Get a real quote early — do not let anyone plug in a placeholder. |
| Mortgage insurance | Handled differently by every program: USDA has an upfront guarantee fee plus an annual fee, FHA has upfront and annual MIP, VA has a one-time funding fee with exemptions, conventional uses PMI that comes off with equity. This line alone can flip which program is cheapest for you. |
| Closing costs | Tennessee recordation and transfer taxes, title work, appraisal, and prepaid escrows. |
Find Out What Your Address Qualifies For
Loan limits, USD or GSD tax treatment, THDA targeted-tract status and the real monthly figure for your address. Christopher will review it personally. No pressure, no runaround.
Neighbouring Counties
If USDA financing matters to you, these are the counties where it is actually available — all within commuting distance of Nashville.
Frequently Asked Questions — Davidson County Homebuyers
Is Davidson County eligible for a USDA loan?
No. 100% of Davidson County’s land area sits inside a USDA-ineligible area — there is no eligible pocket anywhere in the county, including Belle Meade, Berry Hill, Forest Hills and Oak Hill. Buyers who need zero down financing should either use a VA loan, which has no geographic test, or look at Cheatham County, which is 100% USDA-eligible and carries the same loan limits.
What is the FHA loan limit in Davidson County, TN for 2026?
$1,029,250 for a one-unit property, well above the $541,287 national floor. Davidson anchors the Nashville–Davidson–Murfreesboro–Franklin metro area. The 2026 conforming limit is the same figure because Davidson is a designated high-cost area above the $832,750 national baseline. Multi-unit limits are $1,317,650 for a duplex, $1,592,700 for a triplex and $1,979,350 for a fourplex.
What is the difference between the USD and GSD property tax rate in Nashville?
The General Services District rate of $2.782 per $100 of assessed value applies across Davidson County. The Urban Services District rate of $2.814 applies in the denser core that receives Metro trash pickup, street lights and sidewalks. On a $400,000 home that is $2,782 a year in the GSD versus $2,814 in the USD — about $2.67 a month apart. Satellite cities such as Goodlettsville add considerably more.
What are the THDA income limits for Davidson County?
As of 1 August 2026, THDA’s Great Choice and HFA Advantage limits for Davidson County are $139,320 for a one or two person household and $162,540 for three or more, with a $500,000 acquisition cost limit. Davidson contains targeted census tracts where the first-time homebuyer requirement is waived, decided by the specific address.
Do I have to live in Davidson County to work with Valor Mortgage?
No — Valor Mortgage is licensed throughout Tennessee. We are based in Springfield, about thirty minutes north of downtown Nashville, and Davidson County is part of the market we work in every week.
Where These Numbers Come From
Every figure on this page is taken from the agency that publishes it, not from an aggregator. Here is the audit trail.
| Figure | Source | As of |
|---|---|---|
| FHA and conforming limits | HUD FHA Mortgage Limits, Davidson County TN, CY2026 | Revised 1 Jan 2026 |
| USDA eligible areas | USDA Rural Development ineligible-area boundaries | Boundary eff. 25 Jul 2023 |
| County and city tax rates | Tennessee Comptroller of the Treasury, Property Tax Rates | Tax year 2025 |
| Assessment ratio (25%) | Tennessee Code Ann. § 67-5-801 | Current statute |
| Nashville USD / GSD rates | Metro Nashville Office of the Property Assessor | Tax year 2025 |
| THDA limits | THDA Acquisition Cost & Income Limits by County | Effective 1 Aug 2026 |
| VA — no loan limit | Blue Water Navy Vietnam Veterans Act of 2019 | Eff. 1 Jan 2020 |
Last updated: 1 September 2026. Loan limits are reset each November for the following calendar year. THDA limits change periodically. Tennessee property tax rates change after reappraisal cycles. We re-check every figure on this page on that schedule.
Valor Mortgage — Locally Owned, Robertson County Based
Christopher Armantrout | 724 S Main St, Springfield, TN 37172
Christopher Armantrout NMLS #1210804 | Encore Lending Group, LLC NMLS #1249911 | Equal Housing Lender | Licensed in Tennessee
724 S Main St, Springfield, TN 37172 | 615.671.9178 | christopher@valor.mortgage
All figures on this page are estimates for general information and are not an offer or a commitment to lend. Loan limits, program limits, tax rates and USDA eligibility boundaries are set by the agencies named above and change without notice; every figure must be verified for your specific property and household before you rely on it. This is not a commitment to lend. All loans subject to credit approval, income verification, and property appraisal. Programs subject to change without notice.
NMLS Consumer Access