The 2026 Tennessee Home Loan Guide
Every Tennessee home loan compared in one place, so you can see which one fits your credit and down payment — and where to find help with the down payment. Read it here or get it emailed.
Which Tennessee home loan is right for you?
There's no single best mortgage — there's the one that fits your credit, your down payment, and your goals. Most Tennessee buyers land on one of five paths, and the right choice usually comes down to your credit score and how much you have to put down. Here's the plain-English map.
| Loan | Min down | Min credit | Best for |
|---|---|---|---|
| VA | 0% | 580–620 | Veterans, active duty |
| USDA | 0% | 640 | Eligible rural areas |
| FHA | 3.5% | 580 | Lower credit, flexible ratios |
| Conventional | 3% | 620 | Stronger credit; drops PMI at 20% |
| Jumbo | 10%+ | 700+ | Above the conforming limit |
Don't have the down payment? There's help.
Most states run a housing finance agency that offers down payment assistance — typically a percentage of the loan amount toward your down payment and closing costs, sometimes forgivable if you stay in the home. Eligibility, amounts, and credit floors vary by program and county, so we check what Tennessee offers for your situation before you rule it out. Assistance layers onto your first mortgage, so you keep more cash at closing.
What credit score do you need?
Lower than most people assume. FHA and VA open at 580, USDA at 640, conventional at 620, and jumbo usually wants 700+. A 600 score has real options today, and a focused 60–90 days can lift you a full tier and cut your rate. Your score sets your menu; it rarely closes the door.
What counts as a jumbo loan?
A jumbo loan is any mortgage above the conforming loan limit the FHFA sets each year (the 2026 baseline is $832,750 in most counties, higher in designated high-cost areas). Above that limit the loan can't be sold to Fannie Mae or Freddie Mac, so it's underwritten to stricter standards — typically 10%+ down and a 700+ score. Most Tennessee buyers stay under the limit; higher-end markets are where it comes up.
Figures reflect current 2026 guidelines; the conforming limit and program terms change — confirm current numbers with a specialist. Sources: FHFA, HUD, VA, Fannie Mae, Freddie Mac. This is not a commitment to lend.