How to Buy a House with No Money Down in Nashville

Buying a home without a big bank of cash is possible in Middle Tennessee. There are a few mortgage types that let you buy with no money down or very little down. I will walk through the main options and what to check first.

USDA loans: no down payment for eligible areas

USDA loans often allow 100 percent financing for buyers in eligible rural and some suburban areas. Parts of Middle Tennessee outside core city limits, like certain areas near Franklin, Gallatin, or Murfreesboro, can qualify. Check the USDA property eligibility map to be sure.

USDA also has income limits, usually around 115 percent of the county median. Lenders look at credit score and debt to income ratio too. A credit score around 640 and a DTI of 45 percent or lower improves your chances.

VA loans: no down payment for qualifying veterans and service members

If you served, a VA loan can let you buy with no down payment. That includes many veterans, active duty members, and some National Guard or Reserve service. The VA program can save a lot of upfront cash.

There is a VA funding fee in most cases. The fee amount depends on service history and whether this is your first VA-backed loan. Your loan officer can show you the exact number and whether you can roll it into the loan.

Low down options: conventional and FHA loans

If you do not qualify for USDA or VA, conventional and FHA loans let you buy with low down payments. Conventional loans can require as little as 3 percent down for many buyers. You will pay private mortgage insurance until you reach 20 percent equity.

FHA loans require a minimum of 3.5 percent down and have looser credit rules. FHA mortgage insurance usually stays for the life of the loan unless you refinance into a different product.

What to do first in Nashville and Middle Tennessee

Start by pulling your credit and getting a preapproval from a local lender. That tells you what programs you can use and how much home you can afford. Also check property eligibility for USDA and confirm VA service eligibility if applicable.

Shop around for rates and fees. Ask about closing costs, seller credits, and any local assistance programs in places like Brentwood, Hendersonville, or Smyrna that might help reduce cash needed at closing.

Buying with little or no down payment is possible, but rules matter. If you want a straight answer for your situation, call me. I help families across Nashville and Middle Tennessee get clear, realistic loan options.

Contact Keith Goeringer at Barrett Financial Group, NMLS 488023, Company NMLS 181106. Call 615-955-0461 or visit keithgo.com for a quick chat.

Frequently Asked Questions