State Guides/Tennessee
TN

Tennessee Home Buying Guide

South Region · Non-Judicial Foreclosure State

Homestead ExemptionAttorney Required

Key Facts at a Glance

Median Home Price
$335,000
Property Tax Rate
0.67%
Transfer Tax
0.37%
Attorney Required
Yes
Foreclosure Type
Non-Judicial

What Makes Tennessee Unique

No state income tax

Nashville and Memphis are strong growth markets

Great Choice Plus offers 6% DPA on top of below-market rate loan

First-Time Buyer Programs in Tennessee

1

THDA Great Choice Home Loan

Contact your state housing finance agency for current eligibility and rates

2

THDA Great Choice Plus DPA

Contact your state housing finance agency for current eligibility and rates

3

THDA Homeownership for Heroes

Contact your state housing finance agency for current eligibility and rates

Program availability, income limits, and interest rates change frequently. Verify current terms with your lender or state housing finance agency.

Closing Costs in Tennessee

1.1%
Avg Closing Costs
of purchase price
$3,685
Estimated Closing Costs
on median-priced home
0.37%
Transfer Tax
may be split with seller

Attorney at Closing

Attorney Required at Closing

Tennessee requires a licensed real estate attorney to oversee the closing process. Budget $500–$1,500 for attorney fees.

Local Tips for Tennessee Buyers

1

No income tax helps with long-term affordability.

2

Nashville is one of the hottest markets in the South.

3

Great Choice Plus DPA is a second mortgage at 0% interest.

Estimated Annual Ownership Cost in Tennessee

Based on the median home price of $335,000 with a 10% down payment and 7% mortgage rate.

Annual Mortgage Payment$24,060
Annual Property Taxes$2,245
Homeowners Insurance (est.)$1,675
Maintenance (est. 1%/yr)$3,350

Ready to Calculate Your Numbers?

Use our free calculators to estimate your monthly payment, affordability, and closing costs in Tennessee.