What Are the Best First‑Time Buyer Loan Programs in Tennessee?

Why Loan Programs Matter for First‑Time Buyers

Choosing the right loan can mean:

• A lower down payment requirement

• Better interest rates

• Lower monthly payments

• Access to assistance programs that make homeownership more affordable

In Tennessee — and especially in Nashville’s competitive market — knowing your options can help you buy sooner.

FHA Loan — Low Down Payment & Flexible Credit

• Minimum Down Payment: 3.5%

• Credit Score Requirement: As low as 580 (sometimes lower with compensating factors)

• Who It’s For: Buyers with lower credit or limited savings

• Pros: Lower down payment, flexible credit requirements

• Cons: Mortgage insurance required for the life of the loan

Conventional Loan — As Low as 3% Down for First‑Time Buyers

• Minimum Down Payment: 3% for qualified first‑time buyers

• Credit Score Requirement: Generally 620+

• Who It’s For: Buyers with stronger credit and steady income

• Pros: Lower monthly mortgage insurance, possible to remove PMI later

• Cons: Higher credit score requirements than FHA

VA Loan — 0% Down for Eligible Military Buyers

• Minimum Down Payment: None

• Credit Score Requirement: Varies by lender (often 580–620)

• Who It’s For: Veterans, active‑duty service members, some surviving spouses

• Pros: No down payment, no mortgage insurance, competitive rates

• Cons: Only for eligible military buyers

USDA Loan — 0% Down for Rural & Suburban Buyers

• Minimum Down Payment: None

• Income Limits: Based on household size and county

• Who It’s For: Buyers in eligible rural and suburban areas

• Pros: No down payment, low mortgage insurance costs

• Cons: Must buy in a USDA‑eligible location (some areas outside Nashville qualify)

THDA Great Choice Home Loan — Statewide Assistance

• Minimum Down Payment: Varies by loan type (FHA, conventional, VA, USDA)

• Credit Score Requirement: 640+

• Who It’s For: First‑time buyers or those who haven’t owned a home in the last 3 years

• Pros: Offers down payment assistance, competitive fixed rates

• Cons: Must meet income and purchase price limits

How to Choose the Right Program for You

Ask yourself:

1. How much do I have saved for a down payment?

2. What’s my current credit score?

3. Do I qualify for military or rural programs?

4. Do I meet income or price limits for assistance programs?

How Nik Shewmaker REALTOR Helps

• Program Matching: I help you connect with Nashville lenders who know every available program

• Lender Introductions: I’ll introduce you to professionals who can confirm eligibility and benefits

• Buying Strategy: I guide you toward neighborhoods and price points that fit your chosen loan program

Final Thoughts

Tennessee offers multiple great options for first‑time buyers, from zero‑down programs to state assistance. The key is finding the one that matches your finances and goals — and pairing it with the right home in the right neighborhood.

Call to Action

If you’re ready to explore the best first‑time buyer loan programs in Tennessee, contact Nik Shewmaker REALTOR today. I’ll connect you with trusted lenders and guide you from pre‑approval to closing.

Nik Shewmaker (NashvillesNik)

📲 Call or text (615) 585-0022

📧 Email: Nashvillesnik@gmail.com

🌐 Visit: www.NashvillesNik.com