Tennessee Mortgage Guide

Complete Tennessee mortgage guide with median home prices, property tax rates, denial rates, and down payment assistance programs for 2026.

In Tennessee, the median home price is $332,443 and median household income is $67,631. The mortgage denial rate for home purchases is 11.18% according to 2025 HMDA data. 2 down payment assistance programs are available, including Great Choice Plus Deferred Option ($6,000 or $10,000 in forgivable DPA at 0% interest; forgiven at end of 10-year term if home is not sold or refinanced early.).

Tennessee at a Glance

$332,443
Median Home Price
$67,631
Median Income
11.18%
Denial Rate
7,051,339
Population

Median prices based on 2025 FHFA data. Income from 2024 Census ACS. Denial rates from 2025 HMDA data.

Mortgage Calculator for Tennessee

Estimate your monthly payment with the interactive Tennessee mortgage calculator. Includes property taxes, mortgage insurance, and down payment assistance programs.

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Mortgage Denial Rates in Tennessee

In 2025 Home Mortgage Disclosure Act (HMDA) data for home purchases, Tennessee logged 140,634 final-action applications. The mortgage denial rate was 11.18% and the originated share was 65.01%.

These figures show aggregated market outcomes, not an individual buyer's approval odds. Use these figures as context, not a prediction.

Down Payment Assistance Programs in Tennessee

Great Choice Plus Deferred Option

Tennessee Housing Development Agency (THDA)

$6,000 or $10,000 in forgivable DPA at 0% interest; forgiven at end of 10-year term if home is not sold or refinanced early.

Great Choice Plus Amortizing Option

THDA

Up to 5% of sales price (max $15,000) as a 30-year amortizing second mortgage at the same interest rate as the first mortgage.

Tennessee County Calculators

These calculators use local tax and benefit data for each county.

Davidson County

Denial: 7.46% · Tax: 0.68% · 1 DPA programs

Hamilton County

Denial: 8.37% · Tax: 0.70% · 1 DPA programs

Knox County

Denial: 9.89% · Tax: 0.64% · 1 DPA programs

Rutherford County

Denial: 8.58% · Tax: 0.60% · 1 DPA programs

Shelby County

Denial: 9.20% · Tax: 1.20% · 1 DPA programs

Williamson County

Denial: 5.41% · Tax: 0.48% · 1 DPA programs

Tennessee City Calculators

These calculators include local taxes, closing costs, and assistance programs for each city.

Chattanooga

Hamilton County

Tax: 0.70% · 1 DPA programs

Franklin

Williamson County

Tax: 0.48% · 1 DPA programs

Knoxville

Knox County

Tax: 0.64% · 1 DPA programs

Memphis

Shelby County

Tax: 1.20% · 1 DPA programs

Nashville

Davidson County

Tax: 0.68% · 1 DPA programs

Tennessee Mortgage FAQ

What is the median home price in Tennessee?

The median home price in Tennessee is approximately $332,000 as of 2025, based on FHFA housing price index data.

Does Tennessee have down payment assistance programs?

Yes. THDA offers Great Choice Plus Deferred ($6,000 or $10,000 at 0%), Great Choice Plus Amortizing (up to 5% or $15,000), and Homeownership for Heroes (reduced rates for public servants).

What is the mortgage denial rate in Tennessee?

The statewide mortgage denial rate for home purchases in Tennessee is 11.18% based on 2025 HMDA data.

How do Tennessee property taxes compare to other states?

Tennessee has relatively low property taxes, averaging around 0.56%, significantly below the national average. Tennessee also has no state income tax on wages.

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