What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Tennessee conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Tennessee conventional loan limits are the same thing as Tennessee conforming loan limits.

Tennessee Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Tennessee are determined by:

  • Tennessee Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Tennessee are set at the floor amount of $424,100 across the entire state. Metro areas in TN with a conforming limit of $424,100 include Memphis, Knoxville, Nashville and Jackson.

Search all Conventional Loan Limits in Tennessee:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ANDERSONKNOXVILLE, TN$424,100$543,000$656,350$815,650
BEDFORDSHELBYVILLE, TN$424,100$543,000$656,350$815,650
BENTONNON-METRO$424,100$543,000$656,350$815,650
BLEDSOENON-METRO$424,100$543,000$656,350$815,650
BLOUNTKNOXVILLE, TN$424,100$543,000$656,350$815,650
BRADLEYCLEVELAND, TN$424,100$543,000$656,350$815,650
CAMPBELLKNOXVILLE, TN$424,100$543,000$656,350$815,650
CANNONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
CARROLLNON-METRO$424,100$543,000$656,350$815,650
CARTERJOHNSON CITY, TN$424,100$543,000$656,350$815,650
CHEATHAMNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
CHESTERJACKSON, TN$424,100$543,000$656,350$815,650
CLAIBORNENON-METRO$424,100$543,000$656,350$815,650
CLAYNON-METRO$424,100$543,000$656,350$815,650
COCKENEWPORT, TN$424,100$543,000$656,350$815,650
COFFEETULLAHOMA-MANCHESTER, TN$424,100$543,000$656,350$815,650
CROCKETTJACKSON, TN$424,100$543,000$656,350$815,650
CUMBERLANDCROSSVILLE, TN$424,100$543,000$656,350$815,650
DAVIDSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
DECATURNON-METRO$424,100$543,000$656,350$815,650
DEKALBNON-METRO$424,100$543,000$656,350$815,650
DICKSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
DYERDYERSBURG, TN$424,100$543,000$656,350$815,650
FAYETTEMEMPHIS, TN-MS-AR$424,100$543,000$656,350$815,650
FENTRESSNON-METRO$424,100$543,000$656,350$815,650
FRANKLINTULLAHOMA-MANCHESTER, TN$424,100$543,000$656,350$815,650
GIBSONNON-METRO$424,100$543,000$656,350$815,650
GILESNON-METRO$424,100$543,000$656,350$815,650
GRAINGERKNOXVILLE, TN$424,100$543,000$656,350$815,650
GREENEGREENEVILLE, TN$424,100$543,000$656,350$815,650
GRUNDYNON-METRO$424,100$543,000$656,350$815,650
HAMBLENMORRISTOWN, TN$424,100$543,000$656,350$815,650
HAMILTONCHATTANOOGA, TN-GA$424,100$543,000$656,350$815,650
HANCOCKNON-METRO$424,100$543,000$656,350$815,650
HARDEMANNON-METRO$424,100$543,000$656,350$815,650
HARDINNON-METRO$424,100$543,000$656,350$815,650
HAWKINSKINGSPORT-BRISTOL-BRISTOL, TN-VA$424,100$543,000$656,350$815,650
HAYWOODNON-METRO$424,100$543,000$656,350$815,650
HENDERSONNON-METRO$424,100$543,000$656,350$815,650
HENRYPARIS, TN$424,100$543,000$656,350$815,650
HICKMANNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
HOUSTONNON-METRO$424,100$543,000$656,350$815,650
HUMPHREYSNON-METRO$424,100$543,000$656,350$815,650
JACKSONCOOKEVILLE, TN$424,100$543,000$656,350$815,650
JEFFERSONMORRISTOWN, TN$424,100$543,000$656,350$815,650
JOHNSONNON-METRO$424,100$543,000$656,350$815,650
KNOXKNOXVILLE, TN$424,100$543,000$656,350$815,650
LAKENON-METRO$424,100$543,000$656,350$815,650
LAUDERDALENON-METRO$424,100$543,000$656,350$815,650
LAWRENCELAWRENCEBURG, TN$424,100$543,000$656,350$815,650
LEWISNON-METRO$424,100$543,000$656,350$815,650
LINCOLNNON-METRO$424,100$543,000$656,350$815,650
LOUDONKNOXVILLE, TN$424,100$543,000$656,350$815,650
MACONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
MADISONJACKSON, TN$424,100$543,000$656,350$815,650
MARIONCHATTANOOGA, TN-GA$424,100$543,000$656,350$815,650
MARSHALLLEWISBURG, TN$424,100$543,000$656,350$815,650
MAURYNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
MCMINNATHENS, TN$424,100$543,000$656,350$815,650
MCNAIRYNON-METRO$424,100$543,000$656,350$815,650
MEIGSNON-METRO$424,100$543,000$656,350$815,650
MONROENON-METRO$424,100$543,000$656,350$815,650
MONTGOMERYCLARKSVILLE, TN-KY$424,100$543,000$656,350$815,650
MOORETULLAHOMA-MANCHESTER, TN$424,100$543,000$656,350$815,650
MORGANKNOXVILLE, TN$424,100$543,000$656,350$815,650
OBIONUNION CITY, TN-KY$424,100$543,000$656,350$815,650
OVERTONCOOKEVILLE, TN$424,100$543,000$656,350$815,650
PERRYNON-METRO$424,100$543,000$656,350$815,650
PICKETTNON-METRO$424,100$543,000$656,350$815,650
POLKCLEVELAND, TN$424,100$543,000$656,350$815,650
PUTNAMCOOKEVILLE, TN$424,100$543,000$656,350$815,650
RHEADAYTON, TN$424,100$543,000$656,350$815,650
ROANEKNOXVILLE, TN$424,100$543,000$656,350$815,650
ROBERTSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
RUTHERFORDNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
SCOTTNON-METRO$424,100$543,000$656,350$815,650
SEQUATCHIECHATTANOOGA, TN-GA$424,100$543,000$656,350$815,650
SEVIERSEVIERVILLE, TN$424,100$543,000$656,350$815,650
SHELBYMEMPHIS, TN-MS-AR$424,100$543,000$656,350$815,650
SMITHNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
STEWARTNON-METRO$424,100$543,000$656,350$815,650
SULLIVANKINGSPORT-BRISTOL-BRISTOL, TN-VA$424,100$543,000$656,350$815,650
SUMNERNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
TIPTONMEMPHIS, TN-MS-AR$424,100$543,000$656,350$815,650
TROUSDALENASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
UNICOIJOHNSON CITY, TN$424,100$543,000$656,350$815,650
UNIONKNOXVILLE, TN$424,100$543,000$656,350$815,650
VAN BURENNON-METRO$424,100$543,000$656,350$815,650
WARRENMCMINNVILLE, TN$424,100$543,000$656,350$815,650
WASHINGTONJOHNSON CITY, TN$424,100$543,000$656,350$815,650
WAYNENON-METRO$424,100$543,000$656,350$815,650
WEAKLEYMARTIN, TN$424,100$543,000$656,350$815,650
WHITENON-METRO$424,100$543,000$656,350$815,650
WILLIAMSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900
WILSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$466,900$597,700$722,500$897,900

Tennessee conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Tennessee?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming 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. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

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

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Tennessee Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional Loan Guidelines in TNConventional loan guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Tennessee?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Tennessee:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Tennessee, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. In addition, your credit background will be considered. Finally, you must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Tennessee Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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