Tennessee USDA Loans

What are Tennessee USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What RD Loans does USDA offer in Tennessee?

Currently, there are two kinds of USDA Home Loans available in Tennessee for single family households:

. USDA Guaranteed Rural Development Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Tennessee and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Development Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Tennessee?

To be eligible for A USDA Rural Loan in Tennessee, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA zero down mortgage loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for Tennessee USDA Rural Development Loans?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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Tennessee USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
KNOXVILLE, TN (MSA)
ANDERSON
$73,600
$97,150
SHELBYVILLE, TN (MICRO)
BEDFORD
$73,600
$97,150
NON-METRO
BENTON
$73,600
$97,150
NON-METRO
BLEDSOE
$73,600
$97,150
KNOXVILLE, TN (MSA)
BLOUNT
$73,600
$97,150
CLEVELAND, TN (MSA)
BRADLEY
$73,600
$97,150
LA FOLLETTE, TN (MICRO)
CAMPBELL
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
CANNON
$74,600
$98,450
NON-METRO
CARROLL
$73,600
$97,150
JOHNSON CITY, TN (MSA)
CARTER
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
CHEATHAM
$74,600
$98,450
JACKSON, TN (MSA)
CHESTER
$73,600
$97,150
NON-METRO
CLAIBORNE
$73,600
$97,150
NON-METRO
CLAY
$73,600
$97,150
NEWPORT, TN (MICRO)
COCKE
$73,600
$97,150
TULLAHOMA, TN (MICRO)
COFFEE
$73,600
$97,150
NON-METRO
CROCKETT
$73,600
$97,150
CROSSVILLE, TN (MICRO)
CUMBERLAND
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
DAVIDSON
$74,600
$98,450
NON-METRO
DECATUR
$73,600
$97,150
NON-METRO
DEKALB
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
DICKSON
$74,600
$98,450
DYERSBURG, TN (MICRO)
DYER
$73,600
$97,150
MEMPHIS, TN-MS-AR (MSA)
FAYETTE
$73,600
$97,150
NON-METRO
FENTRESS
$73,600
$97,150
TULLAHOMA, TN (MICRO)
FRANKLIN
$73,600
$97,150
HUMBOLDT, TN (MICRO)
GIBSON
$73,600
$97,150
NON-METRO
GILES
$73,600
$97,150
MORRISTOWN, TN (MSA)
GRAINGER
$73,600
$97,150
GREENEVILLE, TN (MICRO)
GREENE
$73,600
$97,150
NON-METRO
GRUNDY
$73,600
$97,150
MORRISTOWN, TN (MSA)
HAMBLEN
$73,600
$97,150
CHATTANOOGA, TN-GA (MSA)
HAMILTON
$73,600
$97,150
NON-METRO
HANCOCK
$73,600
$97,150
NON-METRO
HARDEMAN
$73,600
$97,150
NON-METRO
HARDIN
$73,600
$97,150
KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA)
HAWKINS
$73,600
$97,150
BROWNSVILLE, TN (MICRO)
HAYWOOD
$73,600
$97,150
NON-METRO
HENDERSON
$73,600
$97,150
PARIS, TN (MICRO)
HENRY
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
HICKMAN
$73,600
$97,150
NON-METRO
HOUSTON
$73,600
$97,150
NON-METRO
HUMPHREYS
$73,600
$97,150
COOKEVILLE, TN (MICRO)
JACKSON
$73,600
$97,150
MORRISTOWN, TN (MSA)
JEFFERSON
$73,600
$97,150
NON-METRO
JOHNSON
$73,600
$97,150
KNOXVILLE, TN (MSA)
KNOX
$73,600
$97,150
NON-METRO
LAKE
$73,600
$97,150
NON-METRO
LAUDERDALE
$73,600
$97,150
LAWRENCEBURG, TN (MICRO)
LAWRENCE
$73,600
$97,150
NON-METRO
LEWIS
$73,600
$97,150
NON-METRO
LINCOLN
$73,600
$97,150
KNOXVILLE, TN (MSA)
LOUDON
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
MACON
$74,600
$98,450
JACKSON, TN (MSA)
MADISON
$73,600
$97,150
CHATTANOOGA, TN-GA (MSA)
MARION
$73,600
$97,150
LEWISBURG, TN (MICRO)
MARSHALL
$73,600
$97,150
COLUMBIA, TN (MICRO)
MAURY
$73,600
$97,150
ATHENS, TN (MICRO)
MCMINN
$73,600
$97,150
NON-METRO
MCNAIRY
$73,600
$97,150
NON-METRO
MEIGS
$73,600
$97,150
NON-METRO
MONROE
$73,600
$97,150
CLARKSVILLE, TN-KY (MSA)
MONTGOMERY
$73,600
$97,150
TULLAHOMA, TN (MICRO)
MOORE
$73,600
$97,150
NON-METRO
MORGAN
$73,600
$97,150
UNION CITY, TN-KY (MICRO)
OBION
$73,600
$97,150
COOKEVILLE, TN (MICRO)
OVERTON
$73,600
$97,150
NON-METRO
PERRY
$73,600
$97,150
NON-METRO
PICKETT
$73,600
$97,150
CLEVELAND, TN (MSA)
POLK
$73,600
$97,150
COOKEVILLE, TN (MICRO)
PUTNAM
$73,600
$97,150
NON-METRO
RHEA
$73,600
$97,150
HARRIMAN, TN (MICRO)
ROANE
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
ROBERTSON
$74,600
$98,450
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
RUTHERFORD
$74,600
$98,450
NON-METRO
SCOTT
$73,600
$97,150
CHATTANOOGA, TN-GA (MSA)
SEQUATCHIE
$73,600
$97,150
SEVIERVILLE, TN (MICRO)
SEVIER
$73,600
$97,150
MEMPHIS, TN-MS-AR (MSA)
SHELBY
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
SMITH
$74,600
$98,450
CLARKSVILLE, TN-KY (MSA)
STEWART
$73,600
$97,150
KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA)
SULLIVAN
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
SUMNER
$74,600
$98,450
MEMPHIS, TN-MS-AR (MSA)
TIPTON
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
TROUSDALE
$73,600
$97,150
JOHNSON CITY, TN (MSA)
UNICOI
$73,600
$97,150
KNOXVILLE, TN (MSA)
UNION
$73,600
$97,150
NON-METRO
VAN BUREN
$73,600
$97,150
MCMINNVILLE, TN (MICRO)
WARREN
$73,600
$97,150
JOHNSON CITY, TN (MSA)
WASHINGTON
$73,600
$97,150
NON-METRO
WAYNE
$73,600
$97,150
MARTIN, TN (MICRO)
WEAKLEY
$73,600
$97,150
NON-METRO
WHITE
$73,600
$97,150
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
WILLIAMSON
$74,600
$98,450
NASHVILLE-DAVIDSON–MURFREESBORO, TN (MSA)
WILSON
$74,600
$98,450

 

USDA Loan information for Tennessee’s top cities:

Chattanooga Tennessee USDA LoansClarksville Tennessee USDA LoansJackson Tennessee USDA Loans
Johnson CityTennessee USDA LoansKnoxville Tennessee USDA LoansMemphis Tennessee USDA Loans
Murfreesboro Tennessee USDA LoansNashville Tennessee USDA LoansBrentwood Tennessee USDA Loans
Franklin Tennessee USDA LoansShelby Tennessee USDA LoansDavidson Tennessee USDA Loans

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