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Buying a home

Data from November 2026

Buying a home in Tennessee

A typical home in Tennessee is worth $286,700 (Average 2020–2024). The FHA limit for one unit is $541,287–$1,029,250 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$286,700
median value, Average 2020–2024
14% less than the U.S.
FHA limit
$541,287–$1,029,250
one unit, by county
In 14 of the 95 counties, the limit is above the national floor ($541,287).
Conforming limit
$832,750
up to $1,029,250 in high-cost areas
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$10,035
3.5% of a $286,700 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $286,700 home, the typical value in Tennessee. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $286,700 home in Tennessee

  1. FHA Program rule

    Minimum down3.5%

    In dollars$10,035

    Per month$1,874

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$8,601

    Per month$1,884

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,942

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,942

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$43,005

    Per month$1,651

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

FHA sets the limit by area: 14 of the 95 counties in Tennessee are high-cost and sit above the national floor ($541,287). The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Tennessee programs for buyers

1 verified program that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • Great Choice Plus

    Verified November 5, 2026

    Tennessee state agency help with the down payment and closing costs alongside the Great Choice mortgage: $6,000 or $10,000 forgivable over 10 years with no payments, or up to 5% of the price (maximum $15,000) as a 30-year second mortgage

    • Forgivable
    • Repayable
    See details

What the state publishes

Tennessee rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Tennessee

Exemptions and caps

  • Property tax relief for older, disabled and disabled-veteran homeowners

    Tennessee law provides property tax relief for low-income elderly and disabled homeowners, and for disabled veteran homeowners or their surviving spouses. It is a reimbursement program funded by appropriations the General Assembly authorizes. Tax collecting officials, including county trustees, receive the applications. Per the 2026 brochure, elderly homeowners must be 65 on or before December 31, 2026, own the home and use it as their primary residence, and provide annual income from all sources. The maximum 2025 income of the applicant, spouse, co-owner and resident remainder is $38,470, and relief is calculated on a market value of up to $33,600. These figures change each year.

    Tenn. Code Ann. §§ 67-5-701, 67-5-702 · Tennessee Comptroller of the Treasury, 2026 Property Tax Relief Program brochure · Verified October 24, 2026

When the sale is recorded

  • State realty transfer tax

    When the deed is recorded, a tax of $0.37 per $100 is paid. It is generally based on the consideration paid or the value of the property, whichever is greater. The grantee or transferee (the buyer in a sale) is responsible for paying it. The register of the county where the deed is offered for recording collects it.

    Tenn. Code Ann. § 67-4-409 · Tennessee Department of Revenue, Recordation Tax Manual (March 2023) · Verified October 24, 2026

Your next steps

Where to go next in Tennessee

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Tennessee calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    32 HUD-approved agencies help you prepare to buy; 9 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Tennessee?

For a $286,700 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $10,035 and the conventional minimum (3%) is $8,601. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Tennessee?

Yes. In 2026 data, 14 of the 95 counties in Tennessee have an FHA limit above the national floor ($541,287); the highest is Williamson County ($1,029,250).

What is the conforming loan limit in Tennessee?

In 2026 data, the conforming limit for one unit runs from $832,750 to $1,029,250 depending on the county in Tennessee: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Tennessee?

With $286,700, the FHA minimum down payment ($10,035) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,874 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Tennessee?

We have verified 1 state program in Tennessee that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.