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Key Takeaways for Tennessee Home Buyers:

Here's what you need to know to get started if you’re looking at buying in the Volunteer State:

Average Home Prices in Tennessee

As of April 2025, the median sale price for a single-family home in Tennessee is $332,428.

Average home price:

  • Nashville: $448,899
  • Memphis: $151,564
  • Knoxville: $361,367
  • Chattanooga: $327,006
  • Gatlinburg: $642,467

Source: zillow.com/home-values

Average Home Size in Tennessee

The average size for a single-family home in Tennessee is approximately 2,000 square feet.

Average home size:

  • Nashville Metro (includes Murfreesboro and Franklin): 2,129 square feet
  • Memphis: 2,230 square feet
  • Knoxville: 2,070 square feet
  • Chattanooga: 1,960 square feet
  • Gatlinburg: N/A

Source: https://fred.stlouisfed.org/

Tennessee State Taxes

  • Tennessee has no state income tax on wages or salaries, making it one of the few states with no earned income tax.
  • The average effective property tax rate in Tennessee is approximately 0.64%, which is among the lowest in the country.
  • Tennessee has a state sales tax rate of 7%, with local jurisdictions able to add up to 2.75%, bringing the maximum combined rate to 9.75% in some areas.

How Much Can You Afford in Tennessee?

Recommended
Monthly Payment:
$750.00

affordability graph legend
$750.00
$1050
$1350

Affordable Home Prices With Your Recommended Payment

$107,844.08 house with $9,804.01 down. (10%)

$117,648.09 house with $19,608.02 down. (20%)

$127,452.10 house with $29,412.02 down. (30%)

These examples use the loan term provided and assume a fixed-rate mortgage with an interest rate of 6%.

Tennessee Down Payment Assistance Programs

Great Choice Mortgage Loan Program

The Great Choice Mortgage Loan Program, offered by the Tennessee Housing Development Agency (THDA), is designed to make homeownership more accessible for low- and moderate-income Tennesseans. 

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More about this program
  • 30-year fixed-rate mortgage
  • Minimum credit score of 640
  • Income and purchase price limits vary by county
  • Home must be the primary residence
  • Completion of a THDA-approved homebuyer education course is required
  • Eligible for down payment and closing cost assistance through the Great Choice Plus program

Great Choice Plus Mortgage Program

The Great Choice Plus Mortgage Program from THDA helps eligible homebuyers in Tennessee with down payment and closing costs.

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More about this program

  • Two assistance options:

    • Deferred option: Up to $6,000 with 0% interest, no monthly payments, repayable only if the home is sold or refinanced

    • Amortized option: Up to 5% of the purchase price (max $15,000), same interest rate as first mortgage, 30-year term with monthly payments

  • Minimum credit score of 640
  • Must meet THDA income and purchase price limits (varies by county)
  • Home must be your primary residence
  • First-time home buyer status required (waived in targeted areas)
  • Must complete a THDA-approved homebuyer education course
  • Property must meet THDA eligibility guidelines
  • Must use a THDA Great Choice first mortgage

Homeownership for Heroes Plus Mortgage Loan Program

The Homeownership for Heroes Plus Mortgage Loan Program, offered by the Tennessee Housing Development Agency (THDA), provides down payment and closing cost assistance to eligible heroes purchasing a home through the Homeownership for Heroes first mortgage loan.

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More about this program

  • Available exclusively with the Homeownership for Heroes first mortgage loan

  • Two assistance options:

    • Deferred Option: Up to $6,000 at 0% interest, no monthly payments, repayable only if the home is sold or refinanced within 30 years

    • Amortizing Option: Up to 5% of the purchase price (maximum $15,000), same interest rate as the first mortgage, 30-year term with monthly payments

  • Both options are secured by a second deed of trust

  • This program is tailored for active-duty military, National Guard members, veterans, state and local law enforcement officers, EMTs/paramedics, and firefighters. To qualify, applicants must meet THDA's income and purchase price limits, have a minimum credit score of 640, and complete a THDA-approved homebuyer education course.

Essex + National Homebuyers Fund FHA Program

This down payment assistance program helps buyers get into a home with little to no upfront cost, offering up to 101.5% financing through an FHA first mortgage and a second lien.

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More about this program
  • FHA loan covers 96.5% of the purchase price
  • Second lien covers 3.5% or 5% for down payment or closing costs
  • Minimum credit score: 600 (660 for manual underwriting)
  • No first-time buyer requirement
  • No max DTI with DU/LP approval
  • Homebuyer education required (Fannie Mae HomeView – free online)
  • Non-occupant co-borrowers allowed
  • Eligible properties: Single-family homes, duplexes (2 units), PUDs, condos (agency approved), townhomes, manufactured homes allowed (except single-wides)

Lakeview National Community Lending Program

The Lakeview National program supports low- to moderate-income buyers with down payment assistance and flexible financing to make homeownership more accessible.

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More about this program
  • 30-year fixed-rate conventional mortgage
  • Second lien offers up to 4% for down payment assistance
  • Max LTV/CLTV: 97% / 105%
  • Income limit: Up to 140% of area median income (AMI)
  • Minimum credit score: 660
  • DTI: Lesser of 50% or AUS approval
  • First lien acquired by Lakeview; second lien from an approved DPA provider
  • Eligible properties: Single-family detached or attached homes, single-family homes with accessory units (must be zoned single-family), PUDs and condominiums, rural properties (must be residential in nature)

Churchill Mortgage is an approved lender for these down payment assistance programs. Contact us today to see if you qualify!

Frequently Asked Questions

Check our FAQs for responses to our most popular questions from Tennessee Home Buyers.

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How Much Should I Budget for Closing Costs in Tennessee?

Home buyers in Tennessee should typically budget 2% to 5% of the home’s purchase price for closing costs. These costs can include lender fees, title insurance, taxes, escrow fees, and more. On a $300,000 home, that means you could pay between $6,000 and $15,000 in closing costs.

Many first-time buyers in Tennessee use down payment assistance programs like Great Choice Plus to help cover these expenses. It’s also common to negotiate with the seller to help pay a portion of your closing costs during the offer process.

You will receive your closing costs from your Home Loan Specialist in a Loan Estimate that you will receive after you apply for your home loan and in the Closing Disclosure document that is provided before your official closing day.

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What Are the Most Popular Home Loan Types in Tennessee?

Home buyers in Tennessee have access to a wide range of mortgage options. These are some of the most common:

  • Conventional loans – Popular for buyers with strong credit and larger down payments; often used with THDA programs.

  • FHA loans – Great for first-time buyers with lower credit scores or smaller down payments.

  • VA loans – Available to eligible veterans and active-duty service members with no down payment required.

  • USDA loans – Designed for rural and suburban areas in Tennessee, offering 100% financing to qualified buyers.

  • THDA Great Choice Mortgage – A state program that offers fixed-rate loans and access to down payment assistance for eligible buyers.

Collaboration
How Can I Find a Trusted Local Tennessee Realtor to Work With?

Churchill Mortgage's experienced Home Loan Specialists work closing with a network of trusted, local real estate agents across the state of Tennessee. Just ask for a referral and we'll provide you with a professional who is committed to finding the right home for you.

 
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How Do Schools Rank in Tennessee?

How Do Schools Rank in Tennessee?

Tennessee's public schools show a mix of high-performing districts and ongoing improvement efforts statewide.

  • Top School Districts: According to Niche's 2025 rankings, Maryville City Schools and Collierville Schools are among the best in the state, recognized for academic excellence and student support. 

  • High-Performing Schools: Central Magnet School in Murfreesboro, McFadden School of Excellence, and Merrol Hyde Magnet School are top-ranked public schools, with high proficiency in math and reading. 

  • National Assessments: In the 2024 NAEP results, Tennessee students showed gains in 4th and 8th grade reading and math, outpacing national averages in some areas. 

For detailed school ratings, graduation rates, and test scores, check the Tennessee State Report Card.

For more information, visit the Tennessee Department of Education.

Reviews from Tennessee Home Buyers

★ ★ ★ ★ ★

"Austin was friendly, courteous, and always listened to our questions and concerns, and never made us feel inadequate. He promptly responded to our texts, and calls with answers and solutions that were easy to understand."

Suzanne F.
Nashville, TN
★ ★ ★ ★ ★

"I'm so glad we had Mr. Stephen's helping us we couldn't ask for anything better from excellent communication to going the extra mile to helping us through the whole process of buying our first home, we felt comfortable throughout the whole process and in the future if a new opportunity opens to get another property we will run to him again."

Urbis R.
Riceville, TN
★ ★ ★ ★ ★

"David and his team were excellent to work with, quick to respond to urgent needs, and always provided follow-up and explanation on the steps in the progress and the details of the paperwork. 39 days from our first conversation to a closing, I don't have anything that I could have expected to go easier."

Paul D.
Brentwood, TN

4.9 / 5

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Tennessee Branch Locations

Knoxville, TN

615-767-5147

Visit the Branch Website

9111 Cross Park Dr., D200 | Suite 289

Consumer Direct, TN

615-767-5102

Visit the Branch Website

1749 Mallory Lane, Suite 100, Brentwood, TN

Chattanooga, TN

423-899-6898

Visit the Branch Website

2115 Stein Drive, Ste 217

Phillips Team - GA and TN

866-304-1513

Visit the Branch Website

1749 Mallory Lane, Suite 100

Brentwood, TN

615-370-8888

Visit the Branch Website

1749 Mallory Lane, Suite 100

Churchill Loan Officers in Tennessee

Conforming and high balance allowed. Cooperative housing not eligible. Not all applicants will qualify. Not a commitment to lend. Other restriction or limitations to any program may apply.

This calculator is being provided for educational purposes only. The provided values for interest rates are examples only and do not reflect Churchill Mortgage Product terms & offers. The results are estimates that are based on information you provided and may not reflect Churchill Mortgage Product terms. The information cannot be used by Churchill Mortgage to determine a customer's eligibility for a specific product or service. All financial calculators are provided by a third-party and are not controlled by or under the control of Churchill Mortgage. Churchill Mortgage is not responsible for the content, results, or the accuracy of information.

These calculations are hypothetical examples designed to for illustration purposes only. Consult a Home Loan Specialist for more specific information regarding payments, terms, etc.

Sources:
https://www.attomdata.com/data/us-real-estate/wa/

As a responsible lender, Churchill Mortgage is committed to the principles outlined in federal and state lending laws ensuring all potential borrowers have access to the same information, services, and opportunities throughout the home loan process.