Home Purchase Loans in Tennessee
Buying in Tennessee means two courthouse taxes most calculators leave out, a Nashville FHA limit far above the rest of the state, and no state income tax to help the budget. We are a Tennessee-licensed mortgage lender, price every loan type side by side, and are licensed statewide, in all 95 counties, closing at a title company or attorney’s office near you.
Tennessee Mortgage License 218217. NMLS #1925352.
Buying in Tennessee, 2026
Conforming limit
$832,750 in every county
FHA limit
$694,450 in the Nashville metro, $541,287 elsewhere
Buyer-paid state taxes
Transfer tax $0.37 per $100 plus recordation tax $0.115 per $100 of the loan
Down payment
From 3% conventional, 3.5% FHA, 0% VA
Closing
Title company or attorney; no attorney requirement
3%
Minimum down payment on a conventional loan
$694,450
2026 FHA limit across the Nashville metro
95
Tennessee counties, licensed statewide
4.9
Average of 5,300+ Google reviews
What a Tennessee purchase looks like from the financing side.
Tennessee taxes both sides of the deal at the courthouse. The realty transfer tax is $0.37 per $100 of the price and the buyer customarily pays it when the deed is recorded; the recordation tax on the mortgage is $0.115 per $100 of the loan above the first $2,000, paid by the borrower. On a $400,000 home with a $380,000 loan that is about $1,900 of closing costs, and we put it in your estimate from the first quote rather than the week of closing. Sellers can pay both within each program’s rules.
Nashville is its own market. Davidson, Williamson, Rutherford, Sumner, Wilson and Cheatham share a 2026 FHA limit of $694,450, well above the national floor, while Memphis, Knoxville, Chattanooga and the rest of the state sit at $541,287. The conforming limit is the same everywhere, $832,750, so Williamson County, Belle Meade and the lake homes are where jumbo begins. Closings run through a title company or an attorney, your choice, and property taxes are billed in arrears and due by the end of February.
This page covers buying a home in Tennessee. For the state as a whole, including our Tennessee licence and every loan we offer here, see our Tennessee page; for the purchase process itself, see the purchase hub. If you are weighing programs, FHA in Tennessee and VA in Tennessee go deeper, and when you own, refinancing in Tennessee picks up the story.
Three kinds of Tennessee buyers, and how we finance each.
The loan that fits depends less on the house than on your credit, your savings and how long you plan to stay.
First home
Low down payment
Conventional from 3 percent down for eligible borrowers with a 620 score and mortgage insurance you can ask to cancel at 80 percent of the original value, or FHA from 3.5 percent with a 580 score and a $694,450 limit across the Nashville metro. A documented gift from family can supply the down payment on either.
Relocating
Conventional and jumbo
Buyers arriving from income-tax states often qualify for more here on the same salary, and in Williamson County, Belle Meade, Germantown and the lake towns the loan can cross the $832,750 line. We price conforming and jumbo side by side and tell you when a larger down payment keeps the loan conforming.
Veterans
VA with nothing down
Fort Campbell, Naval Support Activity Mid-South and Arnold: Tennessee is home to more than 400,000 veterans. A VA loan needs no down payment and no monthly mortgage insurance, has no loan limit with full entitlement, and the seller can pay both courthouse taxes as ordinary closing costs.
The four loan types, and what each costs to use in Tennessee.
Program rules are federal; the last column is what changes in Tennessee. Your pro tells you which fits your file.
| Loan | Down payment and credit | In Tennessee |
|---|---|---|
| Conventional | 3% down for eligible borrowers from a 620 score; mortgage insurance you can ask to cancel at 80% of the original value, ending automatically at 78% | Conforming limit $832,750 in every county; the recordation tax is figured on the loan amount, so a larger down payment trims it |
| FHA | 3.5% down from a 580 score, 10% from 500; mortgage insurance for the life of the loan below 10% down | $694,450 in Davidson, Williamson, Rutherford, Sumner, Wilson and Cheatham; $541,287 in Shelby, Knox, Hamilton and most other counties |
| VA | Nothing down with full entitlement; funding fee 2.15% on first use with nothing down, exempt if you receive VA disability compensation | No loan limit with full entitlement; the VA requires a termite inspection; the seller can pay the transfer and recordation taxes as ordinary closing costs; VA caps concessions such as prepaids and the funding fee at 4% |
| Jumbo | Typically 10% to 20% down, 700+ score and reserves after closing | Above $832,750; common in Williamson County, Belle Meade and on the lakes; appraisal review is stricter |
Sellers may pay closing costs within each program’s rules: up to 3% to 9% of the price on conventional depending on the down payment, up to 6% on FHA, and on VA any amount of ordinary closing costs, with concessions such as prepaids and the funding fee capped at 4% of the loan. In Tennessee the buyer customarily pays the transfer tax, so concessions often go there first.
The two courthouse taxes, and why the Nashville FHA limit changes the plan.
The transfer tax and the recordation tax are small on their own and easy to forget together. On a $400,000 purchase with a $380,000 loan they add about $1,900 to the cash you bring to closing, before the lender’s and title company’s fees. We show them on the first Loan Estimate, and when a seller is willing to pay closing costs we put these two taxes at the top of the list, because they are the costs most Tennessee buyers do not see coming.
The Nashville metro’s FHA limit of $694,450 means a buyer with a 620 score and 3.5 percent down can look at a $650,000 house in Franklin, Mt. Juliet or Hendersonville with FHA financing, not only a starter home. Outside the metro the limit drops to $541,287, so the same buyer in Murfreesboro’s neighbor counties or in Knoxville may need a conventional loan sooner. We check the county line before you write the offer.
Memphis to the Smokies
Purchases closed at a Tennessee title company or attorney’s office near you, or with a mobile notary at your kitchen table.
Six Tennessee closing customs that shape your numbers.
These decide who pays what at a Tennessee closing. All of them are on your Loan Estimate from the start.
01
Realty transfer tax
$0.37 per $100 of the purchase price, customarily paid by the buyer when the deed is recorded: $1,480 on a $400,000 home.
02
Recordation tax on the mortgage
$0.115 per $100 of the loan amount above the first $2,000, paid by the borrower: about $435 on a $380,000 loan. It applies again on a refinance.
03
Closing agent
A title company or a real estate attorney, your choice; Tennessee does not require an attorney. Fees for the settlement itself typically run a few hundred dollars and are often split.
04
Title insurance
Custom varies by region. Around Nashville the buyer commonly pays for the owner’s policy; elsewhere it is often the seller. The lender’s policy is a buyer cost everywhere.
05
Property taxes in arrears
County and city bills arrive in the autumn for the current year and are due by the end of February. The seller credits you their share at closing, and the escrow is yours from then on.
06
No state income tax
Not a closing cost, but it changes the math: relocation buyers from income-tax states often qualify for more here than the same salary allowed at home. We run the full budget, not only the rate.
What would a Tennessee purchase cost each month?
Pick a loan type and down payment, then add your county and city tax rate and an insurance figure. The result is the whole payment, which is the number lenders qualify you on.
The U.S. mortgage 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. Your rate and APR depend on your credit, down payment, loan type, the property and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
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.
How a Tennessee purchase works with us.
Four steps, one licensed pro, and a Tennessee closing near you.
1
Pre-approval with real numbers
Income, assets and credit verified, with Tennessee taxes and insurance in the payment and both courthouse taxes in your cash-to-close figure.
2
The right loan, priced side by side
Conventional, FHA, VA and jumbo compared for your file, with the county’s FHA limit checked before you offer.
3
Property checks
Appraisal ordered as soon as the contract is signed, any condo review started, and the termite inspection scheduled on a VA file.
4
Close near you
At a Tennessee title company or attorney’s office near you, or with a mobile notary. The transfer and recordation taxes are on the closing statement exactly as quoted.
Ready to buy in Tennessee?
A Tennessee-licensed pro gives you a pre-approval with the transfer and recordation taxes, insurance and the county tax rate already in the numbers. Free, and it starts without a hard credit pull.
Buying in Tennessee, answered.
The questions Tennessee buyers ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What closing costs does a Tennessee buyer pay?
The lender’s and closing agent’s fees, the realty transfer tax at $0.37 per $100 of the price, the recordation tax at $0.115 per $100 of the loan above $2,000, the lender’s title policy and, around Nashville, usually the owner’s policy too, the first year of homeowners insurance, and prepaid taxes and interest. On a $400,000 purchase with 5 percent down, plan on roughly 2 to 4 percent of the price before any seller credit.
How much do I need down?
Conventional loans start at 3 percent down for eligible borrowers with a 620 credit score, FHA at 3.5 percent with a 580 score, and VA loans need nothing down for eligible veterans. A documented gift from family can supply the down payment on all three. Jumbo loans above $832,750 typically want 10 to 20 percent.
Why is the FHA limit in Nashville so much higher than in Memphis?
HUD sets FHA limits from local median prices. The six-county Nashville metro shares a 2026 limit of $694,450, while Shelby County and most of the state sit at the national floor of $541,287. If you are buying in Davidson, Williamson, Rutherford, Sumner, Wilson or Cheatham, an FHA loan reaches much further than people expect.
Do I need an attorney to close in Tennessee?
No. Tennessee lets a title company or an attorney handle the closing, and most residential purchases close at a title company. Either way we coordinate the closing package and the wire, and a mobile notary can bring the signing to you.
Can the seller pay the transfer tax?
Yes. FHA allows seller contributions of up to 6 percent of the price and conventional loans 3 to 9 percent depending on your down payment; on a VA loan the seller may pay ordinary closing costs such as these taxes, with concessions like prepaids and the funding fee capped at 4 percent of the loan. Both courthouse taxes are usually the first things we put on the concession list.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing happens in Tennessee near you or with a mobile notary. Our Tennessee licence is what allows us to do this.
Talk to a Tennessee-licensed pro about buying a home.
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.
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248-416-1361
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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.