How to Buy a House with No Money Down in Nashville

A VA or USDA loan can put $0 on the down-payment line. That is not the same as walking into a Nashville closing with an empty checking account. Title, prepaid taxes, insurance, and a little reserve still show up. If someone told you zero down means you need nothing, they sold you a slogan.

The real question is which program actually fits the file and the address. We run that before you tour. I will tell you if the 0% path is closed and a 3% or 3.5% structure is the honest one.

USDA: check the map before you fall in love with the listing

USDA guaranteed loans often allow 100% financing on a primary residence in an eligible census tract. People hear USDA and picture a tractor. That is not how the map works in Middle Tennessee. Parts of Murfreesboro, Lebanon, Smyrna, Columbia, Gallatin, and Spring Hill can qualify. Some Williamson County addresses outside the Franklin and Brentwood core can too. Core Nashville and much of Franklin often do not.

Do not guess from a listing remark that says 'rural feel.' Put the exact address on USDA's property eligibility map. City limits and 'it felt country on Saturday' are not the test.

Income is the other gate. USDA typically caps household income around 115% of area median income for the property county and household size. Adults in the house can count. Overtime and a second job can push you over. Limits change. Confirm the current chart on rd.usda.gov, not a blog table from last year.

Credit and DTI still matter. A score around 640 and a DTI around 45% or lower improves your chances on typical lender overlays. USDA itself is more flexible. Overlays move. We will tell you the overlay on your file, not a rumor.

VA: 0% down if you earned it, plus a funding fee on most files

If you served, VA is usually the first structure we run. Eligible veterans, active duty, and some surviving spouses can buy a primary residence with no down payment and no monthly PMI. Fort Campbell sits on the Tennessee-Kentucky line. This is not a niche product here.

You still need entitlement and a Certificate of Eligibility. We can often pull the COE. Bring a DD-214 if you have one. You can use VA more than once. Do not assume you are out of VA because you used it in 2016.

Most files pay a VA funding fee. The percentage depends on first use versus subsequent use and how much you put down. Veterans with a qualifying service-connected disability rating, and some surviving spouses, can be exempt. Confirm the current table on VA.gov. The fee can often be rolled into the loan. Rolling it in is not free. It raises the balance you amortize.

VA still wants residual income, occupancy, and a property that meets minimum property requirements. A condo has to be eligible. We check the building before you write in East Nashville or The Gulch.

If VA and USDA miss: conventional 3% or FHA 3.5%

Plenty of Middle Tennessee buyers are not veterans and the house they want is not on the USDA map. That is a normal file. Conventional can start at 3% down on some primary-residence products, with PMI until you reach about 20% equity. Typical credit conversation starts around 620. Pricing usually gets more interesting as the middle score climbs.

FHA is 3.5% down. HUD's published floor for that option is 580. Lender overlays can sit higher. You will pay an upfront mortgage insurance premium of 1.75% of the base loan amount, plus annual MIP. Under 10% down, MIP usually lasts for the life of a modern FHA loan unless you refinance. That is the trade for the small down payment.

On a $350,000 Smyrna purchase at 3.5% down, the cash on the down-payment line is $12,250 before closing costs. Compare that to 0% VA or USDA on an eligible file, then look at the monthly insurance. We price both. We do not pick the logo that sounds nicer.

THDA, gifts, and seller credits cut cash to close. They are not magic.

THDA Great Choice is a 30-year fixed for moderate-income Tennesseans, usually FHA or USDA, with a published 640 credit floor and county income and price caps. Great Choice Plus can cover down payment and closing costs as a second mortgage if the file fits. It is not a grant. Williamson County is not a THDA targeted county, so repeat buyers in most of Franklin still need the three-year first-time test or military eligibility. Confirm the live chart on THDA.org.

If you teach, fight fires, work in law enforcement, or are an EMT, ask about Homeownership for Heroes while we are in the THDA menu. As of THDA's May 2026 announcement, full-time K-12 teachers in Tennessee public or private schools were added. Heroes is a rate cut on Great Choice. It still sits on the 640, income, price, and education rules.

Gift funds from family are allowed on many owner-occupied loans if we document the source. Last-minute wires without a gift letter stall underwriting. Seller credits are a contract term. HUD allows seller concessions up to 6% of price on FHA. In a multiple-offer Franklin listing that concession is a negotiation, not a right.

Zero down is not zero cash. Here is what still shows up.

The down-payment line can be $0 and you can still need thousands at the table. Plan for the rest of cash to close before you write.

• Lender fees, title, and settlement charges on the Loan Estimate and Closing Disclosure.
• Prepaid interest, homeowners insurance, and tax impounds. Williamson County and Davidson County do not tax the same.
• Earnest money. It usually credits back at closing if you close. It is still cash that has to move.
• A repair and moving reserve. Older houses near Nashville can need work immediately.
• Any appraisal gap if the value comes in light and you still want the house.

What I will actually do with your file

Pull credit the right way. Check the USDA map on the ZIPs you care about. Pull a VA COE if you served. Price FHA against conventional on the same payment. Look at THDA only if income and price can clear the caps.

Then we talk cash to close, not a teaser down payment. Call or text (615) 955-0461 and we will run the menu against your numbers before Saturday showings.