Deferred option
Buyer Resources · Tennessee
A clearer path to
your home loan.
Compare the money down, credit requirements and timing of the main financing options available to Tennessee buyers.
Explore the loan comparisonSide by side
Find your starting point.
Down payments below are starting points for qualifying buyers. Approval also depends on income, debts, savings, the property and the lender’s underwriting.
Reviewed September 30, 2026
| Loan / program | Money down | Credit score | Closing time* | Loan term | Insurance / fees | Key qualifications & tradeoffs |
|---|---|---|---|---|---|---|
| ConventionalFlexible everyday option | As low as 3%Eligible programs; others require more. 20% generally avoids PMI. | Lender & underwriting dependentFannie Mae DU has no universal score minimum; other underwriting paths and lender rules differ. | 30–45 days | Often 15 or 30 years | PMI generally required below 20% down; cancellation may be available. | Some 3% options require first-time buyer status, income eligibility or education. Options also exist for second homes and investment properties with different requirements. |
| FHALower down payment | 3.5%With a score of 580+; 10% with 500–579. | 580+ / 500–579FHA thresholds; lenders may require higher scores. | 30–45 days | Often 15 or 30 years | Upfront and annual mortgage insurance. Duration depends on loan term and down payment. | Primary residence; not restricted to first-time buyers. Property must meet FHA standards. County loan limits apply. |
| VAEligible military buyers | Often 0%Subject to entitlement, appraisal and lender approval. | No VA-set minimumLenders set their own credit requirements. | 30–45 days | Often 15 or 30 years | No monthly mortgage insurance. Funding fee usually applies; eligible borrowers are exempt. | Eligible veterans, service members and certain surviving spouses; Certificate of Eligibility required. Primary residence and VA property standards. |
| USDA GuaranteedEligible rural locations | 0%For eligible borrowers and properties. | No USDA-set minimumLender credit requirements still apply. | 30–60 days | 30 years, fixed | Upfront guarantee fee and annual fee apply. | Primary residence in an eligible area; household income limits apply. Check the exact address—eligibility does not cover every property in a community. |
| THDA Great ChoiceTennessee program | Underlying loan rulesGreat Choice Plus may help fund down payment and closing costs. | 640 minimumAll applicants; lender and underlying loan rules also apply. | 30–60 days | 30 years, fixed | Insurance and fees depend on underlying loan. Assistance is a second mortgage. | Income and purchase-price limits; primary residence and homebuyer education. First-time buyer rules have targeted-area and military exceptions. |
| JumboHigher loan amounts | Often 10–20%+Varies by lender and loan amount. | Often 700+Lender-specific; no universal minimum. | 30–60 days | Lender-specific; often 15 or 30 years | Mortgage insurance and pricing vary by lender. | Loan exceeds the applicable conforming limit. Strong income, credit and cash reserves commonly required. |
| RenovationPurchase + improvements | Program-dependentFHA 203(k): FHA down-payment rules. HomeStyle: qualifying conventional options. | Underlying loan rulesLenders may apply stricter requirements. | 45–90+ days | Program-dependent; often 15 or 30 years | FHA insurance or conventional PMI as applicable; additional project costs. | Repair scope, contractor bids and an appraisal based on completed work. Draws and completion deadlines apply; closing does not mean renovations are finished. |
*Closing times are broad planning estimates from an accepted contract and complete loan file—not agency deadlines or guarantees. Appraisal, title work, repairs, assistance approvals and documentation can extend them. Confirm your schedule with your lender before setting the contract closing date.
Help with upfront costs
A closer look at
THDA assistance.
Great Choice Plus pairs with an eligible Great Choice mortgage. It is a second loan with its own repayment terms.
See current THDA assistance optionsCompare the whole cost
Money down is only one piece.
Cash to close
Budget for closing costs, prepaid taxes and insurance, inspections and an appraisal. A zero-down loan can still require cash. Earnest money is generally credited at closing.
Monthly payment
Compare principal and interest, taxes, homeowners insurance, mortgage insurance and any HOA dues. Ask how your debt-to-income ratio and reserves affect approval.
Rate & long-term cost
Compare written Loan Estimates for the same loan term and lock period. Review APR, points, lender fees and fixed versus adjustable rates—not just the advertised rate.
Your next move
Start with a plan. Shop with confidence.
A lender can confirm financing. I can help you match the property search and offer timeline to your goals.