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$510,400$653,550$789,950$981,700
BEDFORDSHELBYVILLE, TN$510,400$653,550$789,950$981,700
BENTONNON-METRO$510,400$653,550$789,950$981,700
BLEDSOENON-METRO$510,400$653,550$789,950$981,700
BLOUNTKNOXVILLE, TN$510,400$653,550$789,950$981,700
BRADLEYCLEVELAND, TN$510,400$653,550$789,950$981,700
CAMPBELLKNOXVILLE, TN$510,400$653,550$789,950$981,700
CANNONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
CARROLLNON-METRO$510,400$653,550$789,950$981,700
CARTERJOHNSON CITY, TN$510,400$653,550$789,950$981,700
CHEATHAMNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
CHESTERJACKSON, TN$510,400$653,550$789,950$981,700
CLAIBORNENON-METRO$510,400$653,550$789,950$981,700
CLAYNON-METRO$510,400$653,550$789,950$981,700
COCKENEWPORT, TN$510,400$653,550$789,950$981,700
COFFEETULLAHOMA-MANCHESTER, TN$510,400$653,550$789,950$981,700
CROCKETTJACKSON, TN$510,400$653,550$789,950$981,700
CUMBERLANDCROSSVILLE, TN$510,400$653,550$789,950$981,700
DAVIDSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
DECATURNON-METRO$510,400$653,550$789,950$981,700
DEKALBNON-METRO$510,400$653,550$789,950$981,700
DICKSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
DYERDYERSBURG, TN$510,400$653,550$789,950$981,700
FAYETTEMEMPHIS, TN-MS-AR$510,400$653,550$789,950$981,700
FENTRESSNON-METRO$510,400$653,550$789,950$981,700
FRANKLINTULLAHOMA-MANCHESTER, TN$510,400$653,550$789,950$981,700
GIBSONJACKSON, TN$510,400$653,550$789,950$981,700
GILESNON-METRO$510,400$653,550$789,950$981,700
GRAINGERMORRISTOWN, TN$510,400$653,550$789,950$981,700
GREENEGREENEVILLE, TN$510,400$653,550$789,950$981,700
GRUNDYNON-METRO$510,400$653,550$789,950$981,700
HAMBLENMORRISTOWN, TN$510,400$653,550$789,950$981,700
HAMILTONCHATTANOOGA, TN-GA$510,400$653,550$789,950$981,700
HANCOCKNON-METRO$510,400$653,550$789,950$981,700
HARDEMANNON-METRO$510,400$653,550$789,950$981,700
HARDINNON-METRO$510,400$653,550$789,950$981,700
HAWKINSKINGSPORT-BRISTOL, TN-VA$510,400$653,550$789,950$981,700
HAYWOODBROWNSVILLE, TN$510,400$653,550$789,950$981,700
HENDERSONNON-METRO$510,400$653,550$789,950$981,700
HENRYPARIS, TN$510,400$653,550$789,950$981,700
HICKMANNON-METRO$534,750$684,550$827,500$1,028,350
HOUSTONNON-METRO$510,400$653,550$789,950$981,700
HUMPHREYSNON-METRO$510,400$653,550$789,950$981,700
JACKSONCOOKEVILLE, TN$510,400$653,550$789,950$981,700
JEFFERSONMORRISTOWN, TN$510,400$653,550$789,950$981,700
JOHNSONNON-METRO$510,400$653,550$789,950$981,700
KNOXKNOXVILLE, TN$510,400$653,550$789,950$981,700
LAKENON-METRO$510,400$653,550$789,950$981,700
LAUDERDALENON-METRO$510,400$653,550$789,950$981,700
LAWRENCELAWRENCEBURG, TN$510,400$653,550$789,950$981,700
LEWISNON-METRO$510,400$653,550$789,950$981,700
LINCOLNNON-METRO$510,400$653,550$789,950$981,700
LOUDONKNOXVILLE, TN$510,400$653,550$789,950$981,700
MACONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
MADISONJACKSON, TN$510,400$653,550$789,950$981,700
MARIONCHATTANOOGA, TN-GA$510,400$653,550$789,950$981,700
MARSHALLLEWISBURG, TN$510,400$653,550$789,950$981,700
MAURYNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
MCMINNATHENS, TN$510,400$653,550$789,950$981,700
MCNAIRYNON-METRO$510,400$653,550$789,950$981,700
MEIGSNON-METRO$510,400$653,550$789,950$981,700
MONROENON-METRO$510,400$653,550$789,950$981,700
MONTGOMERYCLARKSVILLE, TN-KY$510,400$653,550$789,950$981,700
MOORETULLAHOMA-MANCHESTER, TN$510,400$653,550$789,950$981,700
MORGANKNOXVILLE, TN$510,400$653,550$789,950$981,700
OBIONUNION CITY, TN$510,400$653,550$789,950$981,700
OVERTONCOOKEVILLE, TN$510,400$653,550$789,950$981,700
PERRYNON-METRO$510,400$653,550$789,950$981,700
PICKETTNON-METRO$510,400$653,550$789,950$981,700
POLKCLEVELAND, TN$510,400$653,550$789,950$981,700
PUTNAMCOOKEVILLE, TN$510,400$653,550$789,950$981,700
RHEADAYTON, TN$510,400$653,550$789,950$981,700
ROANEKNOXVILLE, TN$510,400$653,550$789,950$981,700
ROBERTSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
RUTHERFORDNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
SCOTTNON-METRO$510,400$653,550$789,950$981,700
SEQUATCHIECHATTANOOGA, TN-GA$510,400$653,550$789,950$981,700
SEVIERSEVIERVILLE, TN$510,400$653,550$789,950$981,700
SHELBYMEMPHIS, TN-MS-AR$510,400$653,550$789,950$981,700
SMITHNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
STEWARTCLARKSVILLE, TN-KY$510,400$653,550$789,950$981,700
SULLIVANKINGSPORT-BRISTOL, TN-VA$510,400$653,550$789,950$981,700
SUMNERNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
TIPTONMEMPHIS, TN-MS-AR$510,400$653,550$789,950$981,700
TROUSDALENASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
UNICOIJOHNSON CITY, TN$510,400$653,550$789,950$981,700
UNIONKNOXVILLE, TN$510,400$653,550$789,950$981,700
VAN BURENNON-METRO$510,400$653,550$789,950$981,700
WARRENMCMINNVILLE, TN$510,400$653,550$789,950$981,700
WASHINGTONJOHNSON CITY, TN$510,400$653,550$789,950$981,700
WAYNENON-METRO$510,400$653,550$789,950$981,700
WEAKLEYMARTIN, TN$510,400$653,550$789,950$981,700
WHITENON-METRO$510,400$653,550$789,950$981,700
WILLIAMSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650
WILSONNASHVILLE-DAVIDSON--MURFREESBORO--FRANKLIN, TN$563,500$721,400$872,000$1,083,650

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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