VA Loans in Clarksville, TN for Fort Campbell Families

Rules on this page were verified on October 27, 2026 against the VA Lenders Handbook (M26-7), VA.gov, 38 U.S.C. and the Tennessee Comptroller. Program terms and eligibility are subject to VA and lender guidelines and may change. Valor Mortgage is licensed in Tennessee only, so we finance Tennessee addresses.

Why does a VA loan matter more in Clarksville?

Montgomery County is in the Clarksville, TN-KY metro area, not the Nashville one, so the 2026 FHA limit here is $541,287 and the conforming limit is $832,750. VA works differently: with full entitlement, VA sets no loan limit, and the loan is capped by the appraised value and what you qualify for. For an eligible buyer shopping above the FHA limit, VA is often the only zero-down option inside the city, because nearly all of Clarksville is outside USDA’s eligible area. The figures for the whole county are on our Montgomery County mortgage guide.

What are the exceptions and catches?

• Entitlement still in use on a home you kept at a previous duty station lowers what you can borrow with no down payment.
• Leaving the service within 12 months of closing needs extra documentation, such as a re-enlistment or a verified civilian job offer.
• The funding fee is added to the loan unless you’re exempt or pay it in cash.
• The home must meet VA’s minimum property requirements, so a house that needs significant repairs may not qualify as-is.
• Kentucky addresses, including Oak Grove and the Kentucky side of Fort Campbell, are outside what Valor Mortgage can finance.

Can you buy a home in Clarksville before you report to Fort Campbell?

Yes. VA requires you to certify that you intend to live in the home, and the VA Lenders Handbook defines a reasonable time as within 60 days after closing. A later date can be acceptable when you certify a specific move-in date tied to a specific event, such as a report date, but occupancy more than 12 months after closing generally isn’t considered reasonable.

• Your spouse can meet occupancy when active duty keeps you away (38 U.S.C. §3704(c)). A dependent child can also meet it, with the certification signed by an attorney-in-fact or legal guardian.
• If you deploy from your permanent duty station, VA treats that as temporary duty, and you still meet occupancy whether or not a spouse is available to live there.
• Your income document is your LES, not your orders. VA requires a Leave and Earnings Statement no more than 120 days old in place of a verification of employment. Your orders show when you’ll arrive, which is what the occupancy date is built around.
• Within 12 months of ETS: the file needs a documented re-enlistment or extension, a verified local civilian job offer or retirement income, or a statement of intent to re-enlist backed by your commanding officer.

In practice we set the contract and closing dates from your report date, line up a video walkthrough with your agent, and confirm early whether a power of attorney will be accepted if you can’t be in Tennessee to sign.

Does BAH count as income for a VA loan?

Yes. The VA Lenders Handbook says to include a military quarters allowance in effective income when it is properly verified, and to verify the BAH amount, which changes from one duty station to another. Use the Fort Campbell rate on your LES, not the rate from your last assignment. BAS and clothing allowances can also count when verified. Flight, jump, hazard and other specialty pay count only if they’re expected to continue in your new assignment.

Because BAH and BAS aren’t taxable, VA lets lenders gross up that income to 125% for the debt-to-income ratio only. Residual income, VA’s second test, uses your actual income.

Source: VA Lenders Handbook M26-7, chapter 4. Tennessee is in VA’s South region. The guideline is reduced by 5% for active-duty or retired borrowers who will use the facilities of a nearby military base, which applies to many Fort Campbell families. A debt-to-income ratio above 41% needs closer review but can be approved, for example when residual income exceeds the guideline by at least 20%. Program terms are subject to VA and lender guidelines and may change.

How much is the VA funding fee, and who is exempt?

Source: VA, Funding fee and closing costs (rates effective April 7, 2023) and 38 U.S.C. §3729. A VA IRRRL and a loan assumption are 0.5%. Fees are subject to VA guidelines and may change.

You don’t pay the funding fee if you:

• receive VA compensation for a service-connected disability, or would receive it if you weren’t getting retirement or active-duty pay;
• are rated eligible for compensation from a pre-discharge exam or review, with the proposed or memorandum rating in place before closing;
• are a surviving spouse receiving Dependency and Indemnity Compensation; or
• are on active duty and provide evidence of a Purple Heart on or before closing.

A rating that comes after closing: VA can refund the fee if your compensation award’s effective date is retroactive to before the closing date. A proposed or memorandum rating received after closing doesn’t qualify. If you’re near separation with a claim pending, ask about timing before you set a closing date.

Can you use your VA benefit again if you still own a home from your last duty station?

Often, yes. If you kept your last VA-financed home as a rental, part of your entitlement is still tied to that loan. VA then figures your remaining entitlement from the county’s single-unit conforming loan limit: 25% of the limit, minus the entitlement in use. For Montgomery County in 2026 that limit is $832,750.

Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Lenders commonly cap a no-down-payment loan at four times remaining entitlement; above that, a down payment usually covers the difference. Source: VA Lenders Handbook chapter 3 and VA Circular 26-25-10 (2026 limits). Program terms are subject to VA and lender guidelines and may change.

Getting entitlement back: it is restored when the old home is sold and the loan paid in full, or when another eligible veteran assumes the loan and substitutes their own entitlement. VA also allows a one-time restoration if you paid the loan off but still own the home (38 U.S.C. §3702(b)). After that, restoring entitlement again requires selling all VA-financed property.

What property tax relief do disabled veterans get in Tennessee?

Tennessee’s Property Tax Relief program reimburses qualifying disabled veterans for local property taxes on the first $175,000 of their home’s market value. It isn’t a full exemption, and the 2026 program has no income limit for disabled veterans. You qualify with a service-connected disability that is:

• a permanent and total disability, as determined by VA;
• paraplegia or permanent paralysis of both legs and the lower body, legal blindness, or the loss or loss of use of two or more limbs; or
• a 100% permanent and total disability resulting from being a prisoner of war.

Some surviving spouses also qualify if they haven’t remarried and own and live in the home. You apply with the county trustee, or the city’s collecting official for a home inside Clarksville, using form F-16 (F-16S for surviving spouses). Taxes must be paid by the deadline, which is 35 days after the delinquency date.

Illustration only, using the Tennessee Comptroller’s tax year 2025 rates; the Comptroller calculates the actual reimbursement. Sources: TN Comptroller, Property Tax Relief brochure (2026) and T.C.A. §67-5-704. Program terms are subject to change by the Tennessee General Assembly.

What does the VA appraisal check?

• Minimum property requirements: VA’s appraiser confirms the home is safe, structurally sound and sanitary. Repairs that fail those standards have to be completed before closing.
• Termite inspection: VA requires a wood-destroying insect report for the entire state of Tennessee, so plan on one for any Montgomery County purchase. High-rise condos are exempt.
• Early warning on value: under VA’s Tidewater process, the appraiser tells the lender before finishing if the value looks likely to come in below the price, and your side gets two business days to send more sales data.
• Reconsideration of value: after the Notice of Value, you can ask VA in writing to reconsider, through your lender. VA staff aim to review within five business days.

For how appraisals work across all loan types, see what a home appraisal is and why you need one.

What if you already have a VA loan in Clarksville?

If you want a lower rate on the VA loan you already have, the VA IRRRL is VA’s streamline refinance, with a 0.5% funding fee unless you’re exempt. You only need to have lived in the home before, so it can work after a PCS move away from Fort Campbell. For eligibility, the full funding fee chart and how VA compares with FHA and conventional, see VA loans in Tennessee.

VA loans in Clarksville: FAQ

Where these figures come from

Related guides

• VA loans in Tennessee: eligibility, the full funding fee chart and VA vs. FHA and conventional.
• VA IRRRL, the VA streamline refinance.
• Clarksville mortgage broker: how we work with Clarksville and Fort Campbell buyers.
• Montgomery County mortgage guide: loan limits, USDA, THDA and tax rates.
• What to expect from the appraisal.
• About Christopher Armantrout, the licensed originator who wrote this page.