Conventional Loans in Tennessee: The Standard Loan, Priced Across More Than 30 Lenders
For buyers with steady income and solid credit who want the most common loan, priced well.
Conventional loans follow Fannie Mae and Freddie Mac guidelines, but pricing, mortgage insurance and some rules still vary by lender. A small change in down payment or credit score can change what you pay.
I price the same loan across more than 30 lenders and show you the trade-offs before you lock.
Recent file: 11 days from application to closing.
“RL did and outstanding job for us. He went above and beyond to obtain the lowest mortgage rate for us and to make the process streamlined. He is highly efficient, knowledgeable and responsive. I would recommend him and his services to anyone looking to secure a mortgage. By far the best underwriting process I have been through and will continue to use RL for future lending needs.”
Alyson M.
Nashville, TN
Who Conventional Loans Are Best For
Conventional loans fit buyers with documented income and solid credit, for a home to live in, a second home or some investment properties.
Is a Conventional Loan Right for You?
A conventional loan usually makes sense when your income and credit are documented and you can put down at least the program minimum.
If your credit needs more room, I’ll compare it with FHA before you decide.
Have strong credit and documented income
Are purchasing a primary residence or second home
Want flexible down payment options (as little as 3% for first-time buyers or buyers who qualify for HomeReady or Home Possible; 5% otherwise)
Are making an offer in a competitive market where a strong pre-approval matters
Want mortgage insurance you can remove later
Conventional Loan Limits in Tennessee for 2026
A conventional loan up to the county’s conforming limit follows Fannie Mae and Freddie Mac guidelines. In the Nashville area that limit is higher than in the rest of Tennessee, so buyers here can stay conventional on higher-priced homes.
| Where the home is | 2026 conforming limit, one-unit home |
|---|---|
| Williamson, Davidson, Rutherford, Maury, Sumner and Wilson counties, plus Cannon, Cheatham, Dickson, Hickman, Macon, Robertson, Smith and Trousdale | $1,029,250 |
| The other 81 Tennessee counties, including Knox (Knoxville), Hamilton (Chattanooga) and Shelby (Memphis) | $832,750 |
Above those amounts, the loan is a jumbo loan. Two- to four-unit properties have higher limits: in Williamson County, from $1,317,650 for a duplex to $1,979,350 for a fourplex.
Standard or High-Balance?
In the 14 Nashville-area counties, a loan between $832,750 and $1,029,250 is a high-balance conforming loan. It is still a conventional loan, but some lenders price it differently and a few guidelines are tighter, so it is worth comparing lenders on it.
Mortgage Insurance You Can Remove
With a smaller down payment, a conventional loan carries private mortgage insurance. Unlike most FHA loans, that insurance can come off once you have enough equity, by request or automatically on the loan’s schedule. That is often the deciding factor between the two for buyers with good credit.
From a Recent File
A buyer’s agent sent me a client buying a home in Spring Hill. The application came in on Monday, June 29. Two days later they were pre-approved and their file was in underwriting, and we closed on Friday, July 10, the scheduled closing date: 11 days from application to closing, with the Fourth of July holiday in between. I’ve never missed a closing date.
Limits are set each year by the Federal Housing Finance Agency. Figures reviewed October 2026; the FHFA usually announces the next year’s limits in late November.
Common Questions About Conventional Loans
It depends on the lender and the rest of your file: down payment, income and savings. Since November 2025, Fannie Mae no longer sets a minimum credit score for loans approved through its automated underwriting system; manually underwritten loans still need 620 for a fixed rate (Fannie Mae Selling Guide). Many lenders still set their own minimum, so where you apply matters.
As little as 3% if at least one buyer is a first-time homebuyer (Fannie Mae’s 97% loan-to-value options), or if you qualify for Fannie Mae’s HomeReady or Freddie Mac’s Home Possible (both have income limits). Other buyers need at least 5% down, per Fannie Mae’s Eligibility Matrix. The right amount depends on how competitive your offer needs to be and whether avoiding PMI or preserving cash is a priority.
Yes. Sellers look for a loan that will close on time. A complete file and a pre-approval the listing agent can confirm with me carry the most weight.
PMI is required when putting less than 20% down, but it’s cancellable once equity reaches certain thresholds—unlike FHA mortgage insurance.
$1,029,250 for a one-unit home in 2026, the same across the 14 Nashville-area counties. Most other Tennessee counties are at $832,750. Above those amounts, the loan is a jumbo loan.
Yes. On a conventional loan, PMI can be removed once you reach enough equity, either by request or automatically on the loan’s schedule. Most FHA loans with a smaller down payment keep their mortgage insurance for the life of the loan.
Yes, as a home you live in or as an investment. The conforming limits are higher for those properties, and the requirements differ by occupancy, so I look at both before you write an offer.
Related reading: Buying Mortgage Points vs a Higher Rate · How Long Should You Keep a Mortgage?
How I Approach Conventional Loans
Four things I do on every conventional file.
Down Payment and PMI, Priced Out
Before you lock, I show you what a bigger or smaller down payment does to your rate, your mortgage insurance and your cash after closing.
Sometimes paying off a car loan or a credit card does more for you than putting more down.
Priced Across More Than 30 Lenders
Fannie Mae and Freddie Mac set the guidelines, but each lender prices them differently, especially on high-balance loans in the Nashville area. I compare the same loan across more than 30 lenders.
Most pre-approvals go out the same day.
Underwriting Within Three Days of Your Contract
Once you’re under contract, your file goes to underwriting within three days, usually one or two. I chase the appraisal, title and conditions so the date in your contract holds.
I have never missed a closing date.
One Person, Seven Days a Week
You work with me from the first call until your loan closes. No call center, no handoffs.
Calls and texts returned the same day, 7 days a week.
Not Sure if a Conventional Loan Is the Right Fit?
Send me the price range and the down payment you have in mind, and I’ll show you conventional next to your other options.
It takes one call, and there’s no credit pull to start.
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