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Conventional loans in Tennessee

Quick answer

Conventional loans in Tennessee allow as little as 3% down (about $7,704 on a $256,800 home) with a 620+ credit score, up to the $832,750 baseline conforming limit.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Conventional loan snapshot for Tennessee

ItemEstimate
Minimum down payment3%
Minimum credit score620
Typical TN home value$256,800
3.5% down on typical home$8,988
20% down on typical home$51,360
Avg. effective property tax0.55%/yr (~$117/mo)
Income for typical home (31% rule)$78,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Tennessee programs pair with Conventional loans?

  • Great Choice Home Loan: A fixed-rate first mortgage for buyers within income and price limits.
  • Great Choice Plus: Down payment assistance as a deferred or amortizing second loan.

Details and current limits: Tennessee Housing Development Agency (THDA).

How does a conventional loan work?

Conventional loans are made by private lenders and usually sold to Fannie Mae or Freddie Mac. Because they follow those agencies' guidelines, they're called conforming loans. You can choose a fixed rate (15, 20 or 30 years) or an adjustable rate.

Your rate and mortgage insurance cost depend heavily on your credit score and down payment, so improving either before you apply can noticeably lower your payment.

Who qualifies for a conventional loan?

  • Credit score: generally 620 minimum.
  • Debt-to-income (DTI): up to 45%, and sometimes 50% with strong compensating factors.
  • Down payment: 3% (HomeReady, Home Possible, 97% LTV programs) to 5%+.
  • Steady, documented income — usually two years of history.
  • Property: primary homes, second homes and investment properties are all allowed (with higher down payments for non-primary homes).

Conventional loans in Tennessee cities

Conventional in NashvilleConventional in MemphisConventional in KnoxvilleConventional in ChattanoogaConventional in ClarksvilleConventional in MurfreesboroConventional in FranklinConventional in Johnson CityConventional in JacksonConventional in HendersonvilleConventional in BartlettConventional in KingsportConventional in SmyrnaConventional in Spring HillConventional in ColliervilleConventional in ClevelandConventional in GallatinConventional in BrentwoodConventional in ColumbiaConventional in LebanonConventional in Mount JulietConventional in GermantownConventional in La VergneConventional in CookevilleConventional in MaryvilleConventional in Oak RidgeConventional in MorristownConventional in BristolConventional in FarragutConventional in ShelbyvilleConventional in East RidgeConventional in TullahomaConventional in SpringfieldConventional in SeviervilleConventional in GoodlettsvilleConventional in DicksonConventional in DyersburgConventional in SeymourConventional in GreenevilleConventional in ArlingtonConventional in NolensvilleConventional in ElizabethtonConventional in AthensConventional in LakelandConventional in White HouseConventional in McMinnvilleConventional in PowellConventional in PortlandConventional in Soddy-DaisyConventional in ManchesterConventional in LewisburgConventional in CrossvilleConventional in Red BankConventional in Middle ValleyConventional in Hartsville/Trousdale CountyConventional in LawrenceburgConventional in AlcoaConventional in CollegedaleConventional in MillingtonConventional in Union City

Frequently asked questions

Yes. Conventional loans are available statewide in Tennessee through approved lenders, subject to county loan limits where they apply.

Often yes. Tennessee Housing Development Agency (THDA) and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.