Buying a Home in Tennessee (2026): First-Time Buyer Programs, Loan Limits & Lenders

Home prices in Tennessee sit near the middle of the national range, so the loan program you choose — and whether you add down payment assistance — can swing your upfront cash by thousands. Because Tennessee has a smaller population, local lenders and the state housing agency play an outsized role — it pays to compare a few loan officers. A household earning around $78,000 a year could comfortably afford a typical Tennessee home under the 31% housing guideline.

What does a home cost in Tennessee?

Item	Tennessee estimate
Typical home value	$256,800
3% down (conventional)	$7,704
3.5% down (FHA)	$8,988
20% down	$51,360
Est. monthly payment (FHA, 3.5% down)	$2,005
Household income to afford (31%)	$78,000

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

What first-time home buyer programs does Tennessee offer?

Tennessee Housing Development Agency (THDA) is Tennessee's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

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.

Check current terms at Tennessee Housing Development Agency (THDA). Many Tennessee cities and counties also run their own down payment assistance.

What are the Tennessee loan limits for 2026?

Tennessee has 95 counties; 14 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

County	Conforming	FHA
Shelby County	$832,750	$541,287
Davidson County	$1,029,250	$1,029,250
Knox County	$832,750	$541,287
Hamilton County	$832,750	$541,287
Rutherford County	$1,029,250	$1,029,250
Williamson County	$1,029,250	$1,029,250
Montgomery County	$832,750	$541,287
Sumner County	$1,029,250	$1,029,250
Sullivan County	$832,750	$541,287
Wilson County	$1,029,250	$1,029,250
Blount County	$832,750	$541,287
Washington County	$832,750	$541,287

See all Tennessee county loan limits → VA loans have no limit for borrowers with full entitlement.

Which Tennessee down payment assistance programs are verified?

THDA Great Choice Plus (Amortizing) — Up to 5% of the sales price (maximum $15,000) (repayable second mortgage)
THDA Great Choice Plus (Deferred) — Up to $6,000 or up to $10,000 (forgivable loan)

How much house can I afford in Tennessee?

Use Tennessee's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in Tennessee.

How do property taxes affect buying in Tennessee?

Homeowners in Tennessee pay a median of $1,400 a year in property taxes — an effective rate of about 0.55% of the median home value, below the national average, which helps keep monthly payments down (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in Tennessee?

Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in Tennessee cities

Tennessee home buying FAQs

On a typical Tennessee home of about $256,800, a 3.5% FHA down payment is roughly $8,988 and a 3% conventional down payment about $7,704, plus closing costs of 2%–5% of the loan.

Yes. Tennessee Housing Development Agency (THDA) offers programs including Great Choice Home Loan, Great Choice Plus. Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $832,750 in most Tennessee counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $541,287 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

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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.