Areas We Serve
At Griffin Funding, we offer Tennessee home loans throughout the Volunteer State. Some areas where Tennesseans can get a home loan from us include:
- Johnson City
These are just some of the major cities and towns throughout Tennessee where we offer home mortgages. No matter where in Tennessee you live, Griffin Funding can help you find a mortgage to purchase your dream home.
How Do Home Loans Work in Tennessee
Tennessee home loans work similarly to home loans in other states. There are several factors and requirements to buy a house in Tennessee and secure a mortgage, including:
- Credit score
- Debt-to-income (DTI) ratio (the amount of debt you currently have versus the amount of income you bring in)
- Type of mortgage you’re applying for
Applying for a Tennessee mortgage is a relatively straightforward process—as long as you meet the requirements set forth by your mortgage lender, you should be able to secure a Tennessee home loan.
Tennessee Mortgage Programs
There are several Tennessee mortgage programs prospective homebuyers can take advantage of. From VA loans to FHA loans, these are some of the different types of home loans available in Tennessee.
DSCR loans allow real estate investors and mortgage brokers to qualify for financing based on their debt service coverage ratio (DSCR) rather than through traditional means. By calculating the DSCR, lenders can measure a potential borrower’s operating income in relation to their mortgage debt, and thus determine whether they will be able to repay a loan.
When you take out an asset-based loan, you’re borrowing against the value of your assets. The more valuable your assets are, the more financing you can receive. This enables borrowers to tap into the equity of their assets and access financing.
Tennessee VA home loans are available to active-duty and veteran service members, along with surviving spouses. One of the main benefits of VA home loans is that they don’t require a down payment, making it easier for servicemembers and veterans to buy a home. VA loans also tend to have lower interest rates than other types of loans, such as conventional loans. Lastly, VA loans can be used to improve a house or refinance a mortgage, giving veterans and service members and veterans the ability to use funds from their VA loan in a way that suits them best.
At Griffin Funding, we offer various VA loans, such as:
The Federal Housing Authority (FHA) insures FHA loans, which make it easier for first-time homebuyers and those with a shortage of down payment funds to buy a home. FHA loans for first-time homebuyers are less restrictive than conventional loans and other loan types and allow for down payments as low as 3.5%. At Griffin Funding, we offer FHA loans all throughout Tennessee that can help make your dream home a reality.
Bank Statement Loans
Bank statement loans in Tennessee can be useful for those whose W2s don’t accurately depict their income. With a bank statement loan, 12 or 24 months’ worth of bank statement records are used to verify your income, which are generally useful for self-employed workers.
USDA loans are backed by the United States Department of Agriculture and are mortgages for homes located in designated rural areas. For Tennesseans living in a designated rural area, a USDA loan can help you buy your dream home. These loans are designated for low- to middle-income individuals and families and don’t require a down payment.
Tennessee Housing Development Agency (THDA) Loans
The THDA has a few loans designed to help first-time homebuyers. Some of the mortgage programs first-time homebuyers in Tennessee can partake in include:
- Great Choice Home Loans, which are designed for moderate-income buyers and a 30-year fix-rate mortgage for those with credit scores as low as 640
- Great Choice Plus, which provides down payment assistance as a second loan, which can be used for the down payment or closing costs
- Homeownership for the Brave Loans, which are similar to Great Choice Home Loans, but are meant for active-duty service members and veterans and come with reduced interest rates and low down payment requirements
Buying a Home in Tennessee
Buying a home in Tennessee is a major milestone. While purchasing a home in Tennessee is often more affordable than in more expensive states like California and New York, it doesn’t mean the process is necessarily easy, especially if you have a low credit score or issues meeting loan requirements.
With that said, Griffin Funding is here to help. At Griffin Funding, we have a wide range of mortgages to choose from, such as VA loans with no down payment for veterans, FHA loans for first-time homebuyers, and USDA loans for Tennesseans living in rural areas.
Average Cost of a Home in TN
According to Zillow, average home prices in Tennessee are around $200,762, with home values going up 8.1% over the past year. Overall, average home prices in Tennessee are lower than the average home price in the United States, which is $262,604, according to Zillow. However, keep in mind that home values fluctuate depending on a variety of factors, such as:
- Closing costs
- Down payment
- Mortgage payment
- Homeowner’s Association (HOA) fees
- Maintenance and repairs
As you begin your home buying journey, it’s important to keep these factors in mind to ensure you find a home that you can afford with your budget.
Average Down Payment for a Home in TN
Because the down payment is a variable factor in the home-buying process, there isn’t an average down payment for homes in Tennessee. However, the traditional customary down payment on a home is 20%—although, you may be able to put down much less. For this example, we’ll assume you put down a high down payment of 20%— using the average Tennessee home price of $200,762, your down payment would be around $40,152.
For some, affording a down payment this large can be a challenge. Fortunately, there are several home loan options that you might be eligible for that require a smaller down payment or no down payment at all.
Apply for a Tennessee Home Loan
Buying a home in Tennessee is easier than ever when you choose Griffin Funding as your mortgage lender. Apply for a Tennessee home loan today by speaking with one of our home loan officers, who will walk you through the eligibility and application process. Through Griffin Funding, you’ll benefit from an experience tailored to your needs, so you can secure a mortgage that matches your budget. Our application process is fast and simple, with the completion process taking 30 days or less, so you don’t miss out on the home of your dreams.