# USDA Loans in Tennessee: Eligible Areas, Income Limits and Fees Canonical URL: https://valor.mortgage/usda-loan/ Page title: USDA Loans in Tennessee: Income Limits | Valor Mortgage How the 0%-down USDA guaranteed loan works, how to check whether an address and your household income qualify, and what it costs. [Apply Now](https://app.valor.mortgage/) By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) Last updated October 26, 2026 Checked against USDA Rural Development program rules · October 2026 Quick answer A USDA loan is a 0%-down mortgage guaranteed by USDA Rural Development under its Section 502 Guaranteed Loan Program. You qualify if the home sits in a USDA-eligible area, you’ll live in it, and your household income is at or below 115% of the area median. Costs: a 1% upfront guarantee fee, which can be financed, and a 0.35% annual fee for the life of the loan. Much of Tennessee outside the big city cores is eligible. Program figures on this page were verified in October 2026, using USDA’s fiscal year 2027 fees. Program terms and eligibility are subject to USDA Rural Development and lender guidelines and may change. At a glance: USDA loans in Tennessee - **Down payment:** 0% - **Fees:** 1% upfront guarantee fee plus 0.35% a year - **Location:** USDA-eligible address, checked on USDA’s map - **Income limit:** 115% of area median; $133,550 for a 1–4 person household in Robertson County - **Credit:** no USDA minimum; 640+ for automated approval - **Compared with FHA:** no down payment and lower annual fee, but location and income rules ## Do you need a down payment for a USDA loan? No. USDA guaranteed loans can finance up to 100% of the appraised value, and the 1% upfront guarantee fee can be added on top. USDA sets no maximum loan amount for guaranteed loans; how much you can borrow is limited by the household income cap and your debt-to-income ratios. Sellers may contribute toward closing costs; USDA generally allows up to 6% of the price. Seller-paid closing costs and interested-party contributions vary by loan type and transaction; this limit is a general example and does not mean every type of cost or concession is permitted up to that percentage. ## How much are USDA loan fees? - **Upfront guarantee fee:** 1% of the loan amount, usually financed. - **Annual fee:** 0.35% of the average outstanding balance, collected in the monthly payment, for the life of the loan. Both rates are unchanged for fiscal year 2027, which began October 1, 2026. USDA can change fees each fiscal year. Program terms are subject to USDA Rural Development and lender guidelines and may change. ## Which areas of Tennessee are eligible for USDA loans? USDA eligibility is decided by street address on [USDA’s eligibility map](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do), not by city or zip code. Large city cores such as Nashville, Memphis, Knoxville, Chattanooga, Clarksville and Murfreesboro are mostly ineligible, but many surrounding towns and the rural parts of most counties qualify. In Robertson County, for example, only about 2.4% of the land area falls inside a USDA-ineligible boundary, nearly all of it in Springfield. Adams, Cedar Hill, Coopertown, Cross Plains, Greenbrier, Orlinda and White House are entirely eligible, while Springfield is roughly 79% ineligible, so a Springfield address has to be checked individually. See the [Robertson County guide](https://valor.mortgage/mortgage-loans-robertson-county-tn/) for the map analysis. ## What are the USDA income limits in Tennessee? Household income must be at or below 115% of the area median income, and it counts every adult who will live in the home, not just the borrowers. USDA allows deductions for children, child care, elderly or disabled household members. | County | 1–4 person household | 5–8 person household | |---|---|---| | Robertson | $133,550 | Higher; check USDA’s calculator | | Montgomery | $122,800 | Higher; check USDA’s calculator | Source: USDA Rural Development income eligibility calculator, Guaranteed Rural Housing maximum adjusted household income, retrieved September 11, 2026. Limits vary by county and household size and are updated periodically; subject to USDA Rural Development guidelines and may change. ## What credit score do you need for a USDA loan? USDA doesn’t publish a minimum score, but its automated system (GUS) generally needs 640 or higher for a streamlined approval. Below 640, a manually underwritten file may still be approved with stronger documentation. USDA’s debt-to-income benchmarks are 29% for housing and 41% for total debt, which GUS can exceed with compensating factors. Program terms are subject to USDA Rural Development and lender guidelines and may change. ## What kind of home qualifies for a USDA loan? A home you will live in as your primary residence, in an eligible area: existing homes, new construction, eligible condos, and new manufactured homes that meet USDA rules. The property can’t be used mainly for income, such as a working farm. USDA guaranteed loans are 30-year fixed-rate loans. You generally can’t already own a home in adequate condition within commuting distance. ## How does a USDA loan compare with FHA and VA? | Feature | USDA | FHA | VA | |---|---|---|---| | Minimum down | 0% | 3.5% (580+) | 0% (full entitlement) | | Upfront fee | 1% | 1.75% | 2.15% first use; waived for disabled veterans | | Annual fee or MI | 0.35%, life of loan | 0.50%–0.55% on most 30-year loans; life of loan with <10% down | None | | Location rule | Eligible area only | Any | Any | | Income cap | 115% of area median | None | None | | Who can use it | Anyone who qualifies | Anyone who qualifies | Eligible military borrowers | Sources: USDA Rural Development FY2027 fees; HUD Mortgagee Letter 2023-05; VA.gov funding fee schedule. Comparative costs depend on rate, fees, loan amount and lender pricing. Program terms are subject to agency and lender guidelines and may change. ## What does a USDA loan look like on a $350,000 home in Robertson County? | Item | Amount | |---|---| | Purchase price (eligible address, e.g. White House) | $350,000 | | Down payment | $0 | | Upfront guarantee fee (1%), financed | $3,500 | | Total loan amount | $353,500 | | Annual fee (0.35%), first year | About $1,237 | | Household income limit, 1–4 people | $133,550 | Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs, prepaid taxes and insurance are not included. Fees per USDA Rural Development FY2027; subject to USDA and lender guidelines and may change. To try your own numbers, including the property tax for a specific Tennessee address, use the [Tennessee mortgage calculator](https://valor.mortgage/mortgage-calculator/). ## What are the catches with a USDA loan? - Income counts every adult in the household, so a working adult child or parent can push you over the cap. - The 0.35% annual fee lasts for the life of the loan; removing it means refinancing. - Eligibility maps can change after census updates, so check the address before you write an offer. - USDA’s own review comes after lender approval, which can add days to closing; agency processing times are not guaranteed. - Primary residence only, and no second homes or investment property. ## USDA loan FAQ ### Do you have to be a first-time buyer for a USDA loan? No. USDA guaranteed loans don’t require first-time buyer status. You generally can’t already own a home in adequate condition within reasonable commuting distance, and the new home must be your primary residence. Program terms are subject to USDA Rural Development and lender guidelines. ### How do you check if a Tennessee address is USDA eligible? Enter the street address on USDA’s property eligibility map at eligibility.sc.egov.usda.gov. Eligibility is set by address, not zip code, and some towns are split. I can check an address and run your household income against the county limit before you make an offer. ### Does USDA count my spouse’s income if they aren’t on the loan? Yes. The income limit test counts every adult who will live in the home, even if they aren’t on the loan. Only the borrowers’ income is used to qualify for the payment. USDA allows deductions for dependents, child care and elderly or disabled household members. ### Can you use a USDA loan for new construction? Yes. A USDA guaranteed loan can buy a newly built home from a builder in an eligible area, as long as it meets the program’s property and energy standards. Program terms and eligibility are subject to USDA Rural Development and lender guidelines and may change. ### Is there a maximum USDA loan amount? Not for the guaranteed program. USDA sets no fixed loan limit; the amount is capped by the household income limit, your debt-to-income ratios and the appraised value. In Robertson County, the 1–4 person income limit was $133,550 as of September 2026. ## Where these figures come from | Figure | Source | As of | |---|---|---| | Program overview | [USDA Rural Development, Single Family Housing Guaranteed Loan Program](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program) | Retrieved Oct 26, 2026 | | Program rules | [7 CFR Part 3555](https://www.ecfr.gov/current/title-7/subtitle-B/chapter-XXXV/part-3555) | Current regulation | | Upfront and annual fees | USDA Rural Development FY2027 fee notice | FY2027, from Oct 1, 2026 | | Eligible areas and income limits | [USDA property and income eligibility tools](https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do) | Retrieved Sep 11, 2026 | | Robertson County eligibility analysis | Valor Mortgage, from USDA ineligible-area polygons and Census TIGER city boundaries | Sep 2026 | ## Related guides - [USDA loan vs. VA loan](https://valor.mortgage/understanding-the-difference-between-usda-loan-and-va-loan/). - [Can you buy a home with 0% down in Tennessee?](https://valor.mortgage/financing-a-home-with-0-down-payment/) - [FHA](https://valor.mortgage/fha-loans/), [VA](https://valor.mortgage/va-loans/), [conventional](https://valor.mortgage/conventional-loans/) and [jumbo](https://valor.mortgage/jumbo-loans/) loan pages. - [Robertson County](https://valor.mortgage/mortgage-loans-robertson-county-tn/) and [Montgomery County](https://valor.mortgage/mortgage-loans-montgomery-county-tn/) mortgage guides. - Metro Nashville borrowers: how I work as a [Nashville mortgage broker](https://valor.mortgage/nashville-mortgage-broker/). - [About Christopher Armantrout](https://valor.mortgage/about-us/), the licensed originator who wrote this page. [Call me at (615) 671-9178](tel:+16156719178). Send me the address you’re looking at and I’ll check USDA eligibility and your household income against the county limit before you make an offer. If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/), or [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan. About the author [Christopher Armantrout](https://valor.mortgage/about-us/) Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804 Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee. [More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) **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](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804) 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. --- ## Contact Valor Mortgage - Christopher Armantrout, Senior Loan Officer, NMLS #1210804 - Phone: [(615) 671-9178](tel:+16156719178) - Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage) - Office: 724 S Main St, Springfield, TN 37172 - [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/) Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity. All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.