Updated June 2026 · Mike Certo, NMLS #260555

Tennessee Mortgage Programs

Key takeaways

Cornerstone runs the full Tennessee menu through Mike Certo (NMLS #260555) — conventional, FHA, VA, USDA, jumbo, doctor, DSCR, bank-statement self-employed, and buy-before-you-sell bridge.
2026 conforming loan limit: $832,750 across most of Tennessee, rising to $1,029,250 in the 14 high-cost Nashville-MSA counties (FHFA).
THDA down payment assistance (Great Choice Plus, up to $15,000; Homeownership for Heroes) closes only through THDA-approved Originating Agents; we originate national DPA — Chenoa Fund, Arrive Home, Essex/NHF — directly. Full map: Tennessee DPA guide.
FHA sets 3.5% down at a 580 score; Conventional 97 needs 3% down at 620; VA and USDA allow $0 down for eligible Tennessee buyers.
One down payment assistance program per transaction — verified against THDA and national-program rules in July 2026; we run the side-by-side for your hold period.

Cornerstone First Mortgage originates Tennessee mortgages through Mike Certo and his Tennessee-licensed team, from Davidson and Williamson County jumbos to Shelby County FHA files. Below is the full menu we run for Tennessee buyers, each explained with the key 2026 facts. For county income limits, FICO requirements, or a straight read on your Nashville, Memphis, or Knoxville scenario, request more information below or call (480) 296-6513.

By Mike Certo, NMLS #260555 — Updated June 2026

Tennessee Down Payment Assistance

Cornerstone is approved for both Tennessee state-level DPA programs and the major national DPA options. We run the full menu: Tennessee Housing Development Agency (THDA) statewide programs plus national programs that work in Tennessee (Chenoa Fund, Arrive Home, Essex/NHF), for buyers from Clarksville to Chattanooga.

Tennessee state DPA programs

THDA Great Choice Home Loan: First-time and repeat buyer first mortgage with DPA pairing.
THDA Great Choice Plus DPA: Down payment assistance second mortgage paired with Great Choice first mortgage.
THDA Homeownership for Heroes: DPA for eligible front-line workers (military, law enforcement, firefighters, EMS, teachers, healthcare).

National DPA programs (also available for Tennessee buyers)

Chenoa Fund: FHA-paired DPA with both repayable and forgivable structures depending on income and credit profile.
Arrive Home: national DPA for low-to-moderate-income Tennessee buyers, with an ITIN borrower path we see used across Nashville and Memphis.
Essex Mortgage / NHF: multi-tier DPA pairing for FHA, VA, USDA, and conventional buyers across Tennessee's 95 counties.

One DPA program per transaction. Eligibility (county income limits, the $500,000 THDA price cap, FICO, occupancy, first-time status) varies by county, so request more information for your Rutherford or Knox County scenario.

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Buy Before You Sell (BBYS)

Bridge financing for the move-up Tennessee buyer who has to buy the next house before the current one sells. It removes the contingency from the offer, which Franklin and Brentwood listing agents call the deal-saver. Cornerstone's BBYS program lets a Williamson County buyer write a clean offer; we underwrite the bridge on the equity in the existing home plus the new Nashville-area purchase.

Common scenario: Contract Contingent on Buyer Sale (CCBS) deals in hot Nashville and Franklin submarkets where the seller won't take a contingent offer; BBYS removes it.
Process: we underwrite the bridge alongside the new purchase mortgage, then close concurrently on your Davidson County sale and the new home, or near-concurrently.
Audience: move-up buyers plus Memphis and Knoxville listing agents who want their CCBS deal to actually close.

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Self-Employed Loans

Tax returns underrepresent self-employed income because of legal Schedule C deductions, and standard underwriting punishes that. We run the alternative paths for Tennessee's self-employed, whether you own a Chattanooga contracting business or a Nashville consultancy: bank-statement loans (12 or 24 months), 1099 loans, and asset-qualifier loans that qualify on liquid assets without showing income.

Bank-statement loans: qualify on 12 or 24 months of Tennessee business deposits with expense-factor adjustments, not deposit gross.
1099 loans: for Knoxville contractors, gig workers, Realtors, and other 1099 earners, qualifying on documented 1099 income.
Asset-qualifier loans: qualify on liquid assets (cash, brokerage, retirement) spread over an asset-utilization period, a fit for Belle Meade buyers purchasing from savings.

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Jumbo & Medical Professionals

Loan amounts above the conforming limit, which is $832,750 across most of Tennessee and $1,029,250 in the 14 Nashville-MSA counties: full doc, alt doc, super jumbo (above $2M), plus the standout Medical Professionals program. Up to 100% LTV with NO PMI for physicians, dentists, and a specific list of credentialed medical roles. Tennessee has substantial jumbo markets in Nashville (Brentwood, Franklin, Belle Meade) and Memphis (Germantown, Collierville), and Medical Professionals is a frequent path for doctors at Vanderbilt Health, HCA Healthcare TriStar, Methodist Le Bonheur, and Erlanger in Chattanooga.

Medical Professionals eligible (common at Vanderbilt, HCA TriStar, and Erlanger): MD, DO, DDS, DMD, DPM, DVM, PharmD, Ophthalmology MD/DO, Psychiatry MD/DO, CRNA with DNAP/DNP.
For a Brentwood or Germantown purchase: up to 100% LTV at $1.5M with FICO 680; 100% at $2M with FICO 720; 95% at $2M with FICO 680.
Student-loan exclusion: deferred and IBR student loans excluded from DTI for Vanderbilt residents and fellows on resident/fellow income.

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Investor & DSCR Loans

For investors buying Tennessee rental property, from East Nashville duplexes to Memphis single-family rentals. DSCR loans qualify on the property's rental income, not your personal income, and we finance below a 1.0 DSCR ratio. Short-term-rental products are available for Tennessee Airbnb and VRBO markets in Nashville, Chattanooga, and Knoxville.

DSCR loans: qualify on the rental income versus the property's debt service, not your W-2 or Tennessee tax return.
Below 1.0 DSCR: we still finance below-1.0 scenarios, common on appreciating Nashville and Chattanooga doors. Request more information for your deal.
Short-term-rental specific: Airbnb and VRBO DSCR products with underwriting built for Knoxville and Chattanooga STR income.

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First-Time Home Buyer Loans

FHA, USDA, conventional with low down payment, and THDA Great Choice DPA-paired structures. Designed for the real Clarksville or Murfreesboro buyer with everyday income and credit, not a perfect-paper applicant. Our guide to first-time home buyer programs in Tennessee walks through THDA eligibility, the 2026 loan limits, and the Tennessee transfer tax to budget for.

FHA: 3.5% down at 580+ FICO published (620+ practical overlay), the workhorse loan for Memphis and Knoxville first-timers.
USDA: zero down across roughly 90% of Tennessee's land area, the ring counties outside Nashville, Memphis, Knoxville, and Chattanooga.
Conventional 97 and THDA HFA Advantage: 3% down at 620+ FICO (640 through THDA).

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Find the program that fits

Call (480) 296-6513 for a free consult, or send your scenario through the form below. Mike and his Tennessee-licensed team review every Nashville, Memphis, and Knoxville scenario and call you back shortly. No commitment, no salesy follow-up, just an honest read on what’s possible.

Not sure which program fits?

Request more information.

Send a short note. Mike and his team review every Tennessee scenario, from a Davidson County jumbo to a Shelby County FHA file, and respond shortly. No commitment, no salesy follow-up, just an honest read.