VA Home Loans in Tennessee
Fort Campbell, Arnold Air Force Base and Naval Support Activity Mid-South at Millington, plus about 400,000 veterans who call the state home: Tennessee is a VA loan state. Nothing down, no monthly mortgage insurance, and a Tennessee-licensed lender who closes VA loans every week.
Tennessee Mortgage License 218217. NMLS #1925352.
VA in Tennessee, 2026
Down payment
$0 with full entitlement
Loan limit
None with full entitlement
Funding fee, first use
2.15% with less than 5% down; exempt if you receive VA disability compensation
Property tax relief
Taxes on the first $175,000 of value reimbursed at 100% P&T
Transfer tax
$0.37 per $100, usually paid by the buyer
$0
Down payment with full entitlement
0.5%
Funding fee on an IRRRL streamline
95
Tennessee counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Why a VA loan is the right first question for a Tennessee veteran.
Clarksville, on the Tennessee side of Fort Campbell, is one of the busiest VA purchase markets in the country, and Nashville, Memphis, Knoxville and Chattanooga all have large veteran populations of their own. A VA loan lets them buy with nothing down and no monthly mortgage insurance, at a rate that is usually competitive with conventional pricing, on a home anywhere from a Clarksville starter to a $700,000 house in Franklin, because there is no loan limit with full entitlement.
Tennessee adds its own layers. The state charges a transfer tax of $0.37 per $100 of the price, which the buyer customarily pays, and a recordation tax on the mortgage, and a VA loan is not exempt from either, though the seller can pay them as ordinary closing costs. The VA requires a wood-destroying insect inspection on Tennessee homes. And after closing, Tennessee reimburses a veteran rated 100 percent permanent and total for the property taxes paid on the first $175,000 of the home’s market value.
This page covers the VA program as it works in Tennessee. For the state as a whole, see our Tennessee page; for the benefit itself, the funding fee and eligibility in depth, see the VA hub. If you are comparing, FHA in Tennessee is the usual alternative, and for a veteran it is often the more expensive one.
Three ways to use the benefit in Tennessee.
Buying, dropping the rate on a VA loan you already have, or pulling equity out. The funding fee differs for each, and the recordation tax applies to all three.
Buying
VA purchase
Nothing down with full entitlement and no loan limit. The funding fee is 2.15 percent on first use or 3.3 percent after, financed into the loan and waived for veterans receiving disability compensation. Sellers can pay your closing costs, including the transfer tax, and may pay the funding fee and prepaids as concessions, which the VA caps at 4 percent of the loan.
Lower payment
VA IRRRL streamline
Replace a VA loan with a lower rate, usually with no appraisal and no income verification, for a 0.5 percent funding fee. Tennessee charges the recordation tax again on the new loan, so we put it in the break-even before you commit.
Use equity
VA cash-out refinance
Replace any loan, VA or not, with a VA loan for up to 100 percent of the value under VA rules, though most lenders cap it at 90. Tennessee veterans use it to clear debt, renovate, or move from an FHA loan and drop the mortgage insurance for good.
The funding fee, and what applies in Tennessee.
The fee is set by federal law and fixed through November 2031. The last column is what a Tennessee veteran should know about each row.
| Your situation | First use | Subsequent use | In Tennessee |
|---|---|---|---|
| No down payment | 2.15% of the loan | 3.3% of the loan | The seller can pay the transfer tax as a closing cost; the funding fee and prepaids count as concessions, capped at 4% of the loan |
| 5% to 9.99% down | 1.5% | 1.5% | A down payment also lowers the recordation tax, which is figured on the loan amount |
| 10% or more down | 1.25% | 1.25% | Rarely worth it; VA charges no mortgage insurance and the recordation tax saving is small |
| IRRRL streamline refinance | 0.5% | 0.5% | Recordation tax of $0.115 per $100 applies to the new loan; no transfer tax on a refinance |
| Exempt | Receiving VA disability compensation, or eligible and taking retirement pay instead; Purple Heart recipients on active duty; surviving spouses receiving DIC | Same | The same rating usually qualifies a 100% P&T veteran for Tennessee’s property tax reimbursement after closing |
Lenders set credit and income rules; the VA sets none. Most want a 580 to 620 score and residual income after the payment. Tennessee property taxes, due by the end of February, and any HOA dues go into that payment.
Tennessee’s property tax relief for disabled veterans.
Tennessee reimburses a veteran rated 100 percent permanent and total for the property taxes paid on the first $175,000 of the home’s market value, with no income test and no cap on the home’s total value. Service-connected paraplegia, loss or loss of use of two or more limbs, and legal blindness qualify as well, and a surviving spouse can keep the relief. You pay the bill, then the state sends the reimbursement.
You apply with the county trustee after closing with your VA summary of benefits letter. We estimate your escrow with the relief you qualify for, so the payment you are approved on reflects it, and the same rating usually waives the VA funding fee.
Clarksville to the Smokies
VA loans closed at a Tennessee title company or attorney’s office near you, wherever in the state the home is.
Six Tennessee details on a VA file.
The VA rules are national. These are the parts that are particular to Tennessee.
01
Transfer and recordation taxes
$0.37 per $100 of the price, customarily paid by the buyer, and $0.115 per $100 of the mortgage above $2,000, paid by the borrower. A VA loan is not exempt; the seller may pay both as ordinary closing costs, separate from the VA’s 4 percent cap on concessions such as prepaids and the funding fee.
02
Termite inspection
The VA requires a wood-destroying insect inspection on homes in Tennessee, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
03
Property tax relief
For veterans rated 100 percent permanent and total, Tennessee reimburses the taxes on the first $175,000 of market value. Apply with the county trustee after closing.
04
Condos need VA approval
A condo must be on the VA’s approved list before you can use the benefit on it. Most established buildings in Nashville and Knoxville are; we confirm before you offer.
05
Title company or attorney
Tennessee closings run through either. We work with closing agents across the state and can recommend one near you.
06
Buying near base
Homes around Fort Campbell, Arnold and Millington change hands often between service members, and lenders and appraisers there see VA loans every day. The funding fee is charged once per loan, not per move.
What would a VA payment be in Tennessee?
Choose VA as the loan type and set the down payment to zero. The mortgage insurance line stays at zero, which no other loan can match; add your county tax rate and insurance to see the whole payment.
The U.S. VA market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. VA loans often price competitively against conventional loans, depending on the borrower, lender and market, and there is no monthly mortgage insurance in the payment, so compare the whole payment rather than the rate alone.
VA 30-year fixed, U.S. average
7.09%
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date. MortgagePros is not affiliated with, endorsed by, or acting on behalf of the Department of Veterans Affairs or any government agency.
How a VA loan works with us in Tennessee.
Four steps, one licensed pro who closes VA loans every week, and a Tennessee closing near you.
1
Eligibility and the COE
We pull your Certificate of Eligibility, confirm your entitlement, and check whether you are exempt from the funding fee and qualify for the property tax relief.
2
Pre-approval with real numbers
Income, credit and residual income verified, with Tennessee taxes, insurance, HOA dues and both state taxes already in the estimate.
3
Property and building checks
Termite inspection ordered, condo approval confirmed, and likely appraisal items flagged, so the VA appraisal does not surprise anyone.
4
Close in Tennessee
At a title company or attorney’s office near you, or with a mobile notary. The funding fee, if any, and the state taxes are on the statement exactly as quoted.
Ready to use your VA benefit in Tennessee?
A licensed pro confirms your eligibility, your funding fee and any tax relief, and quotes your rate with Tennessee’s taxes and insurance in the numbers. Free, and it starts without a hard credit pull.
VA in Tennessee, answered.
The questions Tennessee veterans ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
Is there a VA loan limit in Tennessee?
Not if you have full entitlement: the VA guarantees a quarter of any loan amount a lender will approve, so a $750,000 home in Franklin or Brentwood can be financed with nothing down. If part of your entitlement is tied up in another home you still own, the county conforming limit of $832,750 applies to the remainder and a down payment may be needed; we work it out from your Certificate of Eligibility.
How much is the funding fee, and can I avoid it?
2.15 percent of the loan on first use with nothing down, 3.3 percent on later uses, 1.5 percent with 5 percent down and 1.25 percent with 10 percent down; 0.5 percent on an IRRRL. It is waived if you receive VA disability compensation, are eligible for it but take retirement pay instead, received a Purple Heart on active duty, or are a surviving spouse receiving DIC. It is usually financed into the loan.
What property tax relief do disabled veterans get in Tennessee?
Tennessee reimburses a veteran rated 100 percent permanent and total, or with certain other service-connected disabilities such as paraplegia, loss of use of two limbs or legal blindness, for the property taxes paid on the first $175,000 of the home’s market value. There is no income test, and a surviving spouse can keep the relief. You pay the bill, apply with the county trustee, and the state reimburses you.
Does a VA loan pay Tennessee’s transfer and recordation taxes?
Yes. The transfer tax of $0.37 per $100 of the price is customarily paid by the buyer, and the recordation tax of $0.115 per $100 of the loan above $2,000 is paid by the borrower; a VA loan is not exempt from either. The seller may pay both as ordinary closing costs; the VA’s 4 percent cap applies to concessions such as prepaids and the funding fee, not to closing costs. An IRRRL pays the recordation tax again on the new loan.
Does the VA require a termite inspection in Tennessee?
Yes. Tennessee is one of the states where the VA requires a wood-destroying insect inspection on the home, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
Do I have to come to Michigan?
No. Your licensed pro handles everything by phone, email and e-signature, pulls your Certificate of Eligibility for you, and the closing happens in Tennessee at a title company or attorney’s office near you, or with a mobile notary.
Talk to a Tennessee-licensed pro about VA loans.
Tell us what you are looking to do and where in Tennessee. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
Prefer to talk?
248-416-1361
Open 24/7. Ask for your pro by name.
Visit our office
880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
Licensed and reviewed
Tennessee Mortgage License 218217. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.