Are you considering settling down in the Volunteer State? If so, you’ve got company. Tennessee has roughly 3 million housing units and a homeownership rate of 66.2%, according to the U.S. Census Bureau’s 2018 American Community Survey.
The median housing value for Tennessee is $177,500, compared with a $229,700 national median value. But home values can vary by county.
What Are the Mortgage Rates in Tennessee?
Home interest rates range from 2.5% to 5.25% in Tennessee.
What Are Today’s Mortgage Rates?
Locking in a low mortgage rate today can save you thousands over the life of your loan. Compare your mortgage rate offers with national average trends.
|
Loan Types |
This Week’s Rate |
Last Week’s Rate |
| 30-year fixed-rate mortgage | 3.01% | 3.05% |
| 15-year fixed-rate mortgage | 2.48% | 2.55% |
| 30-year fixed-rate jumbo mortgage | 3.04% | 3.1% |
| 5/1 ARM | 3.04% | 3.34% |
| 5/1 jumbo ARM | 2.99% | 3.38% |
*Rates as of Sep. 18, 2020
U.S. News’ Best Tennessee Mortgage Lenders
U.S. News conducted an in-depth review of leading direct mortgage lenders. Research was based on program availability and customer satisfaction ratings. Because each consumer has different needs, the top finishers in several key areas were chosen.
Methodology: U.S. News conducted an in-depth review of leading direct mortgage lenders in Tennessee. Research was based on program availability, customer satisfaction ratings and qualification requirements. Because each consumer has different needs, the top finishers in several key areas were chosen.
Best for VA loans
Before You Apply
- Mortgage types: ARMs, conventional, FHA, refinance, USDA and VA
- Minimum FICO credit score: 660
- Maximum loan amount: $1.5 million
- Better Business Bureau rating: A+
Best Features
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Requires no military service
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Sets no minimum loan amount
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Best lender for customer service.
Lender Highlights
- Mortgage types: ARMs, conventional, FHA, first-time homebuyer program, home equity lines of credit, refinancing, VA
- Minimum FICO credit score: 600
- Maximum loan amount: $5 million
- Better Business Bureau rating: A+
Best Features
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Wide variety of mortgages
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Annual percentage rate or closing cost discounts for qualifying Bank of America and Merrill Lynch clients
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No closing costs and no annual, balance transfer and cash advance fees for HELOCs
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Best for online service
Before You Apply
- Mortgage types: conventional, FHA, jumbo, refinance, USDA and VA
- Minimum FICO credit score: 580
- Maximum loan amount: $3 million
- Better Business Bureau rating: A
Best Features
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Offers a first-time homebuyer program
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Accepts mortgage applicants with FICO credit scores as low as 580
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Best feature: low down payment loan options.
Highlights:
- Mortgage types offered: conventional, FHA, VA, ARM, home equity loans
- Minimum FICO score: not disclosed
- Maximum loan-to-value ratio: not disclosed
- Maximum debt-to-income ratio: not disclosed
- Loan amounts: up to $3 million
- Total closing costs: not disclosed
- J.D. Power overall satisfaction rating: 3 out of 5
Best Features
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Income and profession-based loan programs.
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Down payment assistance program available.
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Best for product selection
Before You Apply
- Mortgage types: ARMs, conventional, FHA, jumbo, manufactured home, refinance, reverse, USDA and VA
- Minimum FICO credit score: 600
- Maximum loan amount: varies
- Better Business Bureau rating: A+
Best Features
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Receives strong customer service ratings from the Better Business Bureau
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Offers a broad range of mortgage products
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Provides special mortgage programs for first-time buyers and manufactured homebuyers
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Best lender for fair credit.
Highlights:
- Mortgage types offered: Conventional, FHA, VA, ARM, Refinancing (conventional), Refinancing (FHA), Refinancing (VA), Home equity loans
- Minimum FICO credit score: 500 with conditions
- Maximum debt-to-income ratio: 43% for FHA
- Maximum combined loan-to-value ratio: 90%
- J.D. Power satisfaction rating: Four out of five
Best Features
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LoanDepot mortgages have a lifetime guarantee, which means if you ever decide to refinance an existing loanDepot loan, the company will waive the lender fees and reimburse appraisal fees.
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Best lender with a closing cost assistance program.
Highlights:
- Loan types: conventional, FHA, VA, USDA, ARM, refinancing
- Minimum FICO Score: 600
- Maximum loan-to-value ratio: not disclosed
- Maximum debt-to-income ratio: 43%
- Total closing costs: 2% to 6% of loan amount
- Equity required: not disclosed
- J.D. Power Satisfaction rating: not rated
Best Features
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Offers a wide variety of mortgage loans.
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Provides mortgage loans nationwide.
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Helps with closing costs.
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Best lender for online features.
Highlights:
- Mortgage types offered: ARM, FHA, VA, Refinancing (FHA), USDA, Conventional, Refinancing (conventional)
- Minimum FICO credit score: 580 (FHA), other loans vary
- Maximum debt-to-income ratio: 60%
- J.D. Power satisfaction rating: Five out of five
Best Features
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Complete loan process available online.
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Wide variety of mortgage products.
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Good customer service ratings.
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Mortgage Calculator
Is your dream home within reach? U.S. News’ mortgage calculator will show you how much house you can afford.
What Are Some Tennessee Homebuyer Programs?
The Tennessee Housing Development Agency provides a few programs to help first-time homebuyers, active-duty service members and veterans get into a home.
- Available to: Eligible first-time homebuyers and repeat homebuyers purchasing a property in a designated area.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: Makes it possible to take advantage of down payment assistance through the Great Choice Plus Loan.
- Available to: Eligible active-duty service members, veterans, reservists and their spouses.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Loan options: 30-year, fixed-rate loan.
- Benefits: This type of Great Choice Home Loan waives the requirement to be a first-time homebuyer and provides an interest rate discount of 0.5% as well as access to 100% funding through a VA loan. It also allows borrowers to qualify for a Great Choice Plus Loan.
- Available to: Homebuyers with a Great Choice Home Loan.
- Income limits: Vary by county (see THDA income limits).
- First-time homebuyers only? No.
- Down payment and closing cost assistance: Provides a second mortgage worth up to 5% of the purchase price of the home. The loan charges no interest, and repayment is deferred until you sell or move out of the home or refinance the loan.
Advertising Disclosure: Some of the loan offers on this site are from companies
who are advertising clients of U.S. News. Advertising considerations may impact
where offers appear on the site but do not affect any editorial decisions,
such as which loan products we write about and how we evaluate them. This site
does not include all loan companies or all loan offers available in the marketplace.
