Popular Loans for Buying a Home in Nashville and Middle Tennessee
Conventional, FHA, VA, USDA, jumbo, and ARMs each fit a different file. The right one depends on credit, down payment, occupancy, and whether the property sits in an eligible ZIP.
FHA will talk at 580. Conventional typically wants 620 or better. THDA publishes a 640 floor. Jumbo starts when the loan amount clears the 2026 FHFA baseline of $832,750. The product is a file question, not a personality type, and not the loan your coworker used in Murfreesboro.
I price the structures that can actually close on the house you want. Then we pick the cheaper honest path. Not the brochure.
Conventional: the default when credit and cash support it
Conventional follows Fannie Mae or Freddie Mac rules. It is the workhorse for buyers with roughly 620+ credit who want a 3% to 20% down structure, PMI that can cancel, and the option to buy a primary, a second home, or some investment property.
Twenty percent down usually skips PMI. That is a payment choice, not a moral requirement. First-time products can go to 3%. Many files are 5%. Gift funds are common if we document the trail before the money moves.
FHFA set the 2026 baseline conforming limit at $832,750 for a one-unit home in most of the country, including most Tennessee counties. Older pages still quote $806,500 (2025) or $766,550 (2024). Those are expired. Confirm the county on FHFA's current list. Williamson, Davidson, and most of Middle Tennessee use the baseline, not a high-cost ceiling.
FHA: smaller down payment, MIP that often sticks
FHA is HUD insurance on a 30-year mortgage so a lender will take 3.5% down and a more flexible score than many conventional files. HUD's published floor for 3.5% down is 580. Lender overlays can sit higher. Compensating factors matter.
You pay an upfront mortgage insurance premium of 1.75% of the base loan amount, plus annual MIP split into the monthly payment. Under 10% down, annual MIP typically lasts the life of a modern FHA loan. With 10% or more down, HUD's published rule is usually 11 years. Confirm the current MIP chart on HUD.gov.
FHA is a primary residence. Condos have to be eligible. Sellers can contribute to closing costs up to 6% of price under HUD's seller-concession cap. In a hot Franklin listing that is a negotiation. We write it in if the seller will do it.
VA and USDA: 0% down when the benefit and the map line up
VA is the first structure we run if you served. Eligible veterans, active duty, and some surviving spouses can buy with no down payment and no monthly PMI. A funding fee still applies on most files. Residual income matters. Occupancy is required. Confirm eligibility and the fee table on VA.gov.
USDA guaranteed loans can also be 0% down on a primary residence in an eligible area, with household income typically around 115% of AMI or lower. Parts of Murfreesboro, Lebanon, Smyrna, Columbia, Gallatin, and Spring Hill can qualify. Core Nashville and much of Franklin often do not. A score around 640 and a DTI around 45% or lower improves your chances on typical overlays. Check the address on USDA's map. Do not guess from the city name.
Jumbo is a loan size, not a lifestyle
Jumbo means the loan amount is over the current FHFA conforming cap. For 2026 that baseline is $832,750 for a one-unit home in most Tennessee counties. Brentwood, Franklin, Belle Meade, and Green Hills listings cross that line often. Confirm the county on FHFA.
Credit, reserves, and down payment overlays are tighter. Rates are not automatically worse than conforming. Sometimes they are competitive. Sometimes a larger down payment keeps you under the cap and that wins. We quote both when the math is close. Underwriting is not the same as a conforming file. Plan for more documentation, not a longer slogan.
An ARM only if you can name the exit
An adjustable-rate mortgage starts lower for a set period, then can move. That can fit a known short assignment, a planned sale, or a refinance trigger you can actually describe. Budget for the later rate, not only the teaser.
If you cannot name the exit, take the 30-year fixed conversation seriously. A lower payment in year one is a bad reason to gamble the payment in year eight on a house you still live in.
How I pick one on a real Middle Tennessee file
If you earned VA, we run VA. If the address is USDA-eligible and income fits, we run USDA next to FHA. If credit is 620+ and you have some cash, we price conventional against FHA because PMI that can cancel often beats MIP that sticks. If the loan amount is over $832,750, we talk jumbo or a down payment that keeps you conforming.
THDA sits on top of FHA or USDA for buyers who clear the 640 floor and the county caps. It is a tool. It is a bad religion.
Call or text (615) 955-0461. Bring credit, income, and the ZIPs you actually want. We will pick from the documents, not from a brochure. NMLS #488023.
Sources and what to verify
This is general mortgage education, not a commitment to lend. Rates, programs, and eligibility depend on the borrower, the property, and investor guidelines. Confirm tax, school, zoning, and legal facts with the official source.
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Get the Homebuying PlanFrequently Asked Questions
Keith Goeringer is a Loan Originator at Barrett Financial Group, NMLS #488023, serving buyers in Franklin, Williamson County, and Middle Tennessee. Call or text (615) 955-0461 or email keith@keithgo.com.
The one the file supports. FHA, conventional 3%, VA, USDA, and THDA all show up. We compare payment, cash to close, and mortgage insurance on your numbers. There is no trophy for using the product your neighbor used.
Sometimes, in eligible outlying areas. Core Nashville and much of Franklin do not qualify. Check the USDA map for the exact address. Income still has to fit. A 640 score and a DTI around 45% or lower improves your chances on typical overlays.
Usually no, for eligible borrowers with remaining entitlement. A funding fee often applies. Occupancy rules apply. You still need closing costs unless credits offset them. We will quote cash to close, not only the down-payment line.
When you have a real reason you will not keep the loan at the note rate: a known move, a refinance trigger, a short assignment. If you cannot name the exit, take the 30-year fixed conversation seriously.