Buying a Home in Tennessee: Loans, Down Payments and Pre-Approval
Which home loan fits you, what you'd need for a down payment, Tennessee first-time buyer help, and how pre-approval and closing work with Christopher.
Quick answer
Buying a home in Tennessee starts with a pre-approval, then choosing the loan that fits your credit, savings and where you’re buying. FHA needs 3.5% down with a 580 score, conventional can start at 3% down for first-time buyers, and VA and USDA can require no down payment.
THDA’s Great Choice program and Great Choice Plus down payment assistance can help first-time buyers within county income and price limits.
Program figures on this page were verified against HUD, Fannie Mae, VA, USDA, THDA and CFPB sources in October 2026. Program terms and eligibility are subject to agency, THDA and lender guidelines and may change.
At a glance: buying a home in Tennessee
- Which loan: FHA, conventional, VA, USDA or jumbo, depending on credit, savings, service and location
- Down payment: from 0% (VA, USDA) to 3%–3.5% (conventional, FHA)
- First-time help: THDA Great Choice, Great Choice Plus and Homeownership for Heroes
- Pre-approval: a credit check and document review before you make offers
- From offer to keys: contract, appraisal, underwriting, closing
- Costs: shown on your Loan Estimate within three business days of applying
Which home loan fits you?
| If you… | Look at | Minimum down payment |
|---|---|---|
| Have a credit score from 580 and modest savings | FHA loan | 3.5% (10% with a 500–579 score) |
| Have stronger credit and want mortgage insurance that can come off | Conventional loan | 3% for many first-time buyers; 5% otherwise |
| Are a veteran, service member or eligible surviving spouse | VA loan | 0% |
| Are buying in an eligible rural or suburban area within income limits | USDA loan | 0% |
| Are borrowing more than the conforming limit | Jumbo loan | Commonly 10%–20% |
| Are buying a manufactured home | Manufactured home loan | Depends on the loan type and foundation |
| Are building a home | Construction loan | 0% VA one-time close; from 5% conventional |
| Are self-employed or have non-traditional income | Bank statement, P&L or non-QM loans | Commonly 10%–20% |
| Are buying a rental property | DSCR loan | Commonly 20%–25% |
Sources: HUD Handbook 4000.1; Fannie Mae Eligibility Matrix; VA home loans; USDA Rural Development. Non-QM and jumbo figures are common ranges, not program minimums. Program terms and eligibility are subject to agency and lender guidelines and may change.
How much do you need for a down payment on a $350,000 home in Robertson County?
| Loan | Minimum down | On $350,000 | Upfront agency fee |
|---|---|---|---|
| VA | 0% | $0 | Funding fee 2.15% first use, unless exempt |
| USDA (eligible address) | 0% | $0 | 1% guarantee fee |
| Conventional (first-time buyer) | 3% | $10,500 | None; private mortgage insurance until 20% equity |
| FHA | 3.5% | $12,250 | 1.75% upfront mortgage insurance |
| Conventional (5%) | 5% | $17,500 | None; private mortgage insurance until 20% equity |
Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs and prepaids are not shown. Program terms and eligibility are subject to agency, THDA and lender guidelines and may change.
Down payment assistance, gifts from family and seller-paid closing costs can reduce what you bring to closing. See buying a home with 0% down in Tennessee.
What help is there for first-time buyers in Tennessee?
The Tennessee Housing Development Agency (THDA) runs the state’s main programs:
- Great Choice Home Loan: a 30-year fixed FHA, VA or USDA loan for buyers with a 640 credit score, within county income limits and a $500,000 price limit.
- Great Choice Plus: down payment assistance of $6,000 or $10,000 forgiven after 10 years, or up to 5% of the price (maximum $15,000) repaid over 30 years.
- Homeownership for Heroes: 0.50% off the Great Choice rate for K–12 teachers, first responders and veterans.
THDA counts you as a first-time buyer if you haven’t lived in a home you owned for three years, and waives that rule in targeted areas and for veterans. More detail: Tennessee first-time homebuyer programs. Program terms and eligibility are subject to THDA and lender guidelines and may change.
How does mortgage pre-approval work?
A pre-approval means a lender has checked your credit and reviewed documents showing your income and assets, and is prepared to lend up to a stated amount, subject to the property and final underwriting. A prequalification is usually based on what you tell the lender, without verification. The CFPB notes that lenders use the terms differently, so ask what was actually verified.
What to have ready:
- Recent pay stubs and two years of W-2s, or two years of tax returns if you’re self-employed
- Two months of bank statements, plus documentation for any large deposits
- A photo ID, and your DD-214 or Certificate of Eligibility for a VA loan
- Details of any child support, alimony, bankruptcy or foreclosure
Credit-scoring models generally treat several mortgage inquiries within a short shopping window as one, per the CFPB.
What happens between pre-approval and closing?
- Pre-approval. I review your credit, income and assets and compare loan options across participating wholesale lenders, so you know your price range and cash to close before you shop.
- Find a home with an agent you choose. If you’d like names, see our list of Middle Tennessee real estate agents; using one is always your choice.
- Offer and contract. Once your offer is accepted, you formally apply. You receive a Loan Estimate within three business days.
- Inspection, appraisal and underwriting. The appraisal confirms the value; underwriting verifies your documents and clears any conditions. See how the appraisal works.
- Closing Disclosure and closing. You receive your Closing Disclosure at least three business days before closing, then sign with the title company you or your agent choose. Closings are handled by phone and online from anywhere in Tennessee.
How long it takes depends mostly on the contract dates, the appraisal and how quickly documents come in. Underwriting and appraisal times are not guaranteed. Step by step: how to buy your first home.
What does it cost to buy a home besides the down payment?
- Closing costs: lender, appraisal, title and recording fees. Your Loan Estimate lists them, and you can compare offers line by line.
- Prepaids: homeowners insurance, property taxes and interest set aside at closing. Tennessee property taxes vary by county and city; each county guide shows the local rates.
- Agency fees: the VA funding fee, FHA upfront mortgage insurance or the USDA guarantee fee, usually added to the loan.
- Earnest money: a deposit with your offer that is credited toward your purchase at closing.
With sufficient seller credits, lender credits, assistance and eligible financed costs, some borrowers may have very little cash required at closing. See closing costs vs. down payments.
Home buying FAQ
What credit score do you need to buy a house in Tennessee?
FHA allows a 580 score with 3.5% down, and 500–579 with 10% down, though lenders often set their own minimums. THDA’s Great Choice program needs 640 for every borrower. Conventional, VA and USDA minimums are set mostly by lenders. Program terms are subject to agency and lender guidelines and may change.
Can you buy a house in Tennessee with no money down?
VA and USDA loans can finance 100% of the price for eligible buyers and properties. FHA and conventional loans need 3.5% and 3% respectively, but THDA’s Great Choice Plus, family gifts and seller credits can cover much of it. Program terms and eligibility are subject to agency, THDA and lender guidelines and may change.
How long does a pre-approval last?
It depends on the lender, and on how recent your credit report, pay stubs and bank statements are. If your documents get old or your finances change before you find a home, the lender updates the pre-approval. Avoid new credit and large unexplained deposits while you shop.
Who counts as a first-time homebuyer in Tennessee?
For THDA’s programs, anyone who hasn’t lived in a home they owned in the past three years. THDA waives the rule in its targeted counties and census tracts and for qualified veterans. Some conventional programs use their own definitions. Program terms and eligibility are subject to THDA and lender guidelines and may change.
Why use a mortgage broker to buy a home?
A broker can compare loan options and pricing across participating wholesale lenders on one application, instead of offering one bank’s products. Whether that produces a lower rate depends on your file and on lender pricing that day. Broker compensation is disclosed on your Loan Estimate.
How do you start buying a home with Valor Mortgage?
Call or book a time for a free review of your goals and price range. When you’re ready, we pull credit, review your documents and issue a pre-approval. Closing is handled by phone and online anywhere in Tennessee, with the title company you or your agent choose.
Where these figures come from
| Figure | Source | As of |
|---|---|---|
| FHA 3.5% / 580, 10% / 500–579, 1.75% upfront MIP | HUD Handbook 4000.1 | Current handbook |
| VA 0% down, funding fee | VA, Funding fee and closing costs | Checked Oct 27, 2026 |
| THDA Great Choice, Great Choice Plus, Heroes, limits | THDA, Great Choice; Down Payment Assistance | Checked Oct 27, 2026 |
| Prequalification vs. pre-approval | CFPB | Checked Oct 27, 2026 |
| Loan Estimate and Closing Disclosure timing | CFPB, Loan Estimate; Closing Disclosure | Checked Oct 27, 2026 |
| Rate-shopping credit inquiries | CFPB | Current page |
Related guides
- FHA, conventional, VA, USDA and jumbo loans.
- Down payment assistance and first-time homebuyer programs.
- How to buy your first home and how much home you can buy.
- County and city guides across Tennessee.
- Already own? See refinancing.
- About Christopher Armantrout, the licensed originator who wrote this page.
Call me at (615) 671-9178. I’ll go over your goals and price range, compare loan options across participating wholesale lenders, and tell you what you’d bring to closing before you start shopping.
If it’s after hours, grab a time on my calendar, or start the secure application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.