Tennessee Mortgage Resources and Market Guide
Statewide mortgage market context, program availability, and local considerations for Tennessee home buyers and real estate investors.
Tennessee mortgage market overview
Tennessee has experienced significant population growth over the past decade, driven by in-migration from higher-cost states, a business-friendly tax environment, and employment growth in healthcare, logistics, automotive manufacturing, and technology. This growth has affected home prices across the state, particularly in the Nashville metro, while creating sustained rental demand in most major markets.
Tennessee has no state income tax on wages (the Hall Tax on investment income was fully repealed in 2021), which continues to attract buyers from higher-tax states. This demographic shift has meaningfully affected home prices and mortgage demand in the state's major metros.
Loan program availability in Tennessee
All major federal loan programs are available throughout Tennessee:
- Conventional: Available statewide. The 2026 conforming limit is $806,500 for all Tennessee counties. Limits are set annually by the FHFA.
- FHA: Available statewide. For 2026, most Tennessee counties have a single-family limit of $524,225. Higher-cost areas may have higher limits. Check HUD's current table for the specific county.
- VA: Available statewide. Tennessee has a large veteran and active-duty population, particularly around Fort Campbell (Clarksville) and Arnold AFB (Tullahoma).
- USDA: Available in eligible rural and suburban areas. Large portions of Tennessee outside major metro cores qualify. Eligibility is determined by property address, not county.
The Tennessee Housing Development Agency (THDA) offers the Great Choice Home Loan program with down payment assistance for qualifying buyers statewide.
Major metro markets
Nashville
Middle Tennessee's largest market. Competitive purchase environment, growing jumbo segment.
Memphis
West Tennessee hub. High rental demand, investor-active market.
Knoxville
East Tennessee anchor. University market, gateway to the Smokies.
Chattanooga
Hamilton County and the Tri-State area. Outdoor recreation economy, revitalized urban core.
Murfreesboro
Rutherford County growth market. Strong suburban demand.
Clarksville
Montgomery County and Fort Campbell. Large military and veteran population.
East Tennessee
Oak Ridge
DOE/ORNL employment base. Stable government-sector buyer profile.
Maryville
Blount County seat. Suburban Knoxville with USDA-eligible pockets.
Alcoa
Industrial employment base adjacent to Maryville.
Farragut
Affluent west Knoxville suburb. Conventional and jumbo market.
Lenoir City
Loudon County. USDA-eligible areas, lake community appeal.
Johnson City
Washington County. ETSU market, healthcare employment.
Kingsport
Sullivan County. Industrial and healthcare employment base.
Bristol
State-line market. Tennessee and Virginia financing considerations.
Cleveland
Bradley County. Manufacturing employment, USDA-eligible areas.
Smoky Mountains and short-term rental markets
Middle Tennessee — Williamson County
Tennessee loan programs and assistance
FHA Loans
3.5% down, flexible credit requirements.
VA Loans
Zero down for eligible veterans and active-duty military.
USDA Loans
Zero down in eligible rural and suburban areas.
Conventional Loans
Conforming limit $806,500 statewide for 2026.
THDA Great Choice
Below-market rate for qualifying first-time buyers.
Down Payment Assistance
THDA programs to reduce upfront costs.
Jumbo Loans
Above conforming limit — Nashville and Williamson County.
DSCR Loans
Investor financing based on rental income.
First-time buyers and down payment assistance
First-Time Buyer Programs
Overview of programs for first-time buyers.
THDA Overview
Tennessee's state housing finance agency.
Great Choice Home Loan
THDA's flagship below-market rate program.
Great Choice Plus
Deferred second mortgage for down payment assistance.
Homeownership for Heroes
Reduced rate for military and first responders.
Investor financing in Tennessee
Property types in Tennessee
Rural Properties
USDA eligibility, acreage, well and septic.
Log Cabins
Smoky Mountain cabin financing.
Vacation Homes
Second home vs. investment property rules.
New Construction
Construction-to-permanent loans.
Multi-Family (2–4 Units)
Owner-occupied duplex to fourplex.
All Property Type Guides
Full library of property financing guides.
Tennessee property taxes
Tennessee has relatively low property taxes compared to national averages. Rates vary by county — Davidson County (Nashville) has higher effective rates than many rural counties. Tennessee assesses residential property at 25% of appraised value for tax purposes, and the tax rate is applied to that assessed value rather than the full appraised value.
For current tax rates in a specific county, check with the county assessor's office. Rates can change with reassessments and local budget cycles.
Tennessee mortgage guidance from Morgan Hardy
Morgan Hardy is a Tennessee-based mortgage broker with knowledge of local markets across the state. Contact Morgan to discuss financing for your Tennessee home purchase or investment.
Contact Morgan Hardy