Using Your Home Equity in Tennessee
For many Tennessee homeowners, their home represents one of their largest sources of accumulated wealth. Zillow reported a typical Tennessee home value of $330,844 as of September 2026. According to the Federal Housing Finance Agency’s seasonally adjusted, purchase-only House Price Index, Tennessee home prices increased 38.45% over the five years ending in the second quarter of 2026.
Home-price growth has varied across Tennessee’s major metropolitan areas. FHFA’s all-transactions index reported five-year increases of 33.07% in Memphis, 45.84% in Nashville, 51.51% in Chattanooga, and 63.45% in Knoxville. These differences can affect how much equity you have accumulated and how much you can borrow through a home equity loan or home equity line of credit. This guide explains how home equity borrowing works in Tennessee. For a national overview, visit our home equity loans and lines of credit hub.
Sources: Zillow home value data through September 2026 and Federal Housing Finance Agency House Price Index data for 2026Q2, released in August 2026.
Griffin Funding’s Home Equity Options in Tennessee
Learn more about each program on our HELOC, fixed-rate HELOC, and home equity loan pages.
Griffin Funding offers four ways to borrow against your home equity in Tennessee. Two are fully digital and fund in days. Two are traditional programs that go up to $1 million and let you qualify with bank statements or rental income instead of tax returns. On Tennessee’s typical home, worth about $330,844, borrowing up to 90% of the home’s value means total debt on the property can reach roughly $298,000; a homeowner who owes half the home’s value could access around $132,000. Every program starts with a soft credit pull, so you can see your offers without touching your credit score, and none of them carries a prepayment penalty when you qualify with your own income.
Digital Variable-Rate HELOCVariable rate · $25,000 to $750,000 · funds in days
Digital Fixed-Rate HELOCFixed rate · $25,000 to $750,000 · 5-minute pre-approval
Traditional HELOCVariable rate · $100,000 to $1,000,000 · alt doc friendly
Fixed-Rate HELOANFixed rate · $100,000 to $1,000,000 · one lump sum
Every program: soft credit pull to see your pre-approval and offers; a hard pull happens only after you accept. No prepayment penalty when you qualify with your own income; the DSCR HELOC has none, and the DSCR HELOAN offers options with or without one (see the investor section below).
“Max borrowing” is combined loan-to-value (CLTV): your existing mortgage plus the new loan, as a share of your home’s value. Maximums step down at lower credit scores. Variable rates are indexed to the WSJ Prime Rate plus a margin. Loans above the no-appraisal thresholds require a full appraisal; digital fixed-rate HELOCs from $400,000 to $750,000 also require a 760+ credit score. On the digital variable-rate HELOC, amounts above $500,000 are for primary homes only; on the HELOAN, amounts above $750,000 are for primary homes only. Figures reflect Griffin Funding’s standard home equity programs as of October 2026 and are subject to change. Actual amounts, rates, and terms depend on your credit profile, property type, income documentation, and available equity. This is not a loan offer or a guarantee of approval.
Home Equity Options for Tennessee Real Estate Investors
Investors who document income can borrow up to 90% of a Tennessee investment property’s value through the digital variable-rate HELOC with a 720+ credit score. If you’d rather not share personal income documents at all, Griffin Funding offers DSCR versions of both products that qualify on the property’s rent instead:
DSCR HELOC: A line of credit on an investment property that qualifies when the rent covers at least 110% of the payment. Lines from $100,000 to $500,000, with credit scores starting at 720, at up to 70% of the property’s value, with no personal income documents, no cash reserves required, and no prepayment penalty.
DSCR HELOAN: A fixed-rate lump sum from $100,000 to $500,000 at up to 80% of the property’s value with a 720+ credit score (credit scores start at 680), qualifying when the rent covers the full payment. LLCs and corporations can borrow with a personal guaranty, so you don’t have to move the property out of your entity to close. The DSCR HELOAN comes with or without a prepayment penalty: penalty options step down over one to five years and typically carry better pricing, and no-penalty options are available if you plan to pay off or refinance early.
A cash-out refinance is another option if you want to access equity in your Tennessee home while replacing your current mortgage. Unlike a HELOC or home equity loan, a cash-out refinance pays off your existing mortgage with a new, larger loan and provides the difference in cash, minus applicable costs. Griffin Funding offers cash-out refinancing to eligible Tennessee homeowners.
If you are purchasing a Tennessee home, a piggyback loan combines a primary mortgage with a HELOC, home equity loan, or another eligible second mortgage that closes at the same time. Depending on the structure and your qualifications, this keeps your first mortgage at 80% of the price, so you avoid PMI, and can keep it under the conforming limit, although you will have two loans, two payments, and potentially additional closing costs.
How Much Can You Borrow With a HELOC or HELOAN in Tennessee?
Your home equity is the difference between your home’s current market value and what you still owe on it. When you apply for a HELOC or home equity loan, we use your combined loan-to-value ratio, or CLTV, to compare your existing mortgage and new financing with your home’s value.
Your loan program, property type, credit score, existing liens, loan amount, income, debt obligations, and underwriting requirements determine how much you can borrow. With a 720+ credit score, Griffin Funding’s digital variable-rate HELOC allows up to 90% combined loan-to-value on primary residences, second homes, and investment properties (investment properties require full income documentation). Other programs allow borrowing from 70% to 90%.
For example, suppose your Tennessee home is worth $800,000 and you owe $400,000. At 90% CLTV, your total mortgage debt could reach $720,000, leaving up to $320,000 in potential borrowing capacity. At 70% CLTV, your total mortgage debt could reach $560,000, leaving up to $160,000. Your actual loan amount may be lower based on program limits, closing costs, your financial profile, and the property’s verified value.
If you own your Tennessee home free and clear, there is no existing mortgage balance to subtract. A first-lien HELOC the only mortgage on the property. You can borrow up to the program’s full CLTV limit, subject to the program’s loan limits. The amount available will still depend on the loan amount and your financial profile.
How much equity can you actually access in Tennessee’s housing markets? The table below shows the typical home value and the estimated cash available at 70%, 80%, and 90% combined loan-to-value (CLTV). Figures assume an existing mortgage balance of 50% of current home value, so your actual accessible equity may differ.
You may qualify for more than shown. These figures assume a mortgage balance equal to 50% of your home’s value. If you owe less, your accessible equity is higher. A Nashville homeowner with a $448,896 home who owes $120,000 could access about $284,000 at 90% CLTV, well above any program minimum.
2026 HELOC and HELOAN Rates in Tennessee
Griffin Funding offers home equity financing to eligible Tennessee homeowners. Your rate depends on factors such as market conditions, credit score, combined loan-to-value ratio, property type, loan amount, and the program you choose. Variable-rate HELOCs are generally tied to the Wall Street Journal prime rate plus a lender margin, so the rate and payment change over time. Fixed-rate HELOCs and home equity loans provide a rate that is locked before closing and remains fixed according to the loan terms. Because pricing can change daily, request a personalized quote for current rates and costs.
What Do You Need to Qualify for Home Equity Programs in Tennessee?
Five factors determine your eligibility: available equity, income documentation, credit score, payment history, and debt obligations.
- Equity value: You can borrow up to 90% of your property’s value, including your existing mortgage balance. With a 720+ credit score, the digital variable-rate HELOC reaches the 90% maximum on primary residences, second homes, and investment properties (investment properties require full income documentation). Other programs allow borrowing from 70% to 90%. Learn more about home equity loan limits and how much equity you can borrow.
- Stable income: Traditional programs use documents such as pay stubs, W-2s, or tax returns. If you are self-employed, an eligible bank statement program lets you qualify using 12 to 24 months (HELOC) or 12 months (HELOAN) of bank statements. A DSCR home equity loan allows an eligible real estate investor to qualify primarily using the rental property’s cash flow instead of personal income.
- Minimum credit: Digital programs accept credit scores starting at 600, while traditional programs start at 660. Higher credit scores provide access to higher borrowing limits. Compare Griffin Funding’s home equity loan and HELOC options to review program requirements and find the right option for your credit profile.
- Payment history: A demonstrated history of consistent, on-time mortgage payments over the last 12 months.
- Debt-to-income ratio: Certain Griffin Funding HELOC programs may permit a debt-to-income ratio as high as 50%, depending on the program and the strength of the overall application. Your DTI, credit score, available equity, and property type determine how much you can borrow. Learn more about the factors that determine your home equity borrowing limit.
Tennessee-Specific Home Equity Considerations
Tennessee home equity borrowing limits depend on your credit, property type, home value, and combined loan-to-value ratio. Tennessee uses nonjudicial foreclosure, with the first required publication appearing at least 20 days before the sale. State law provides a post-sale right of redemption, but the mortgage or deed of trust can waive this right.
Local governments set property taxes, and residential property is assessed at 25% of its appraised value. Counties conduct reappraisals on four-, five-, or six-year cycles. Here is what to consider before you apply.
Tennessee Home Equity Loan and Line of Credit Closing Costs
How you close depends on the home equity program you choose. Some Griffin Funding digital HELOCs can support a remote online notary session, allowing you to sign by secure video. Tennessee has permitted approved notaries to perform remote online notarizations since July 1, 2019. Availability still depends on the loan program, title or settlement provider, technology platform, and local recording requirements. If remote signing is unavailable, you can sign with a mobile notary or attend an in-person closing.
Your closing documents typically include a deed of trust that must be properly signed, acknowledged, and recorded with the Register of Deeds in the Tennessee county where your property is located. Traditional HELOCs and home equity loans require an in-person signing, while eligible digital programs offer a more automated closing process.
If the loan or credit line is secured by your principal residence, federal law gives you three business days to cancel after the transaction is completed and you receive the required disclosures and cancellation notice, whichever occurs last. Funding typically takes place after this period expires. This federal right generally does not apply when the property is a second home or investment property rather than your principal dwelling. The Consumer Financial Protection Bureau provides additional information about this cancellation period.
Closing costs vary by program and can include lender, title, valuation, appraisal, notary, credit-report, and county recording fees. Tennessee also imposes a mortgage recordation tax of $0.115 per $100 of recorded indebtedness, with the first $2,000 exempt.
Read our guide for a complete breakdown of HELOC closing costs.
Tennessee Foreclosure Process
Tennessee allows nonjudicial foreclosure when a deed of trust contains a power-of-sale provision, allowing the trustee to sell the property without obtaining a court order. Under Tennessee Code § 35-5-101, the foreclosure notice must be published at least twice in a newspaper in the county where the sale will occur, with the first publication at least 20 days before the sale. The notice must also be posted online through a third-party internet posting company for at least 20 continuous days. The foreclosing party must send a copy of the notice to the borrower and any co-borrower by registered or certified mail on or before the first publication date.
Tennessee law provides a two-year right of redemption after qualifying foreclosure sales, but the mortgage or deed of trust can expressly waive this right under Tennessee Code §§ 66-8-101 and 66-8-103. Check your loan documents for the foreclosure and redemption terms that apply to your property.
Tennessee Property Tax Reassessment
Tennessee does not provide a general property-tax exemption for every owner-occupied home. Instead, the state offers a Property Tax Relief Program for qualifying low-income elderly or disabled homeowners, eligible disabled veterans, and certain surviving spouses. This program reimburses part or all of the property taxes paid on an eligible primary residence, so you still receive a tax bill and remain responsible for paying any amount due. Some participating counties and cities also offer an income-based property-tax freeze for qualifying homeowners age 65 or older.
Tennessee’s homestead exemption is different because it protects equity from certain creditor claims rather than reducing property taxes. Under Tennessee Code § 26-2-301, the basic exemption is generally up to $35,000 for one owner or a combined $52,500 for joint owners who use the property as their principal residence. It does not apply against property taxes, qualifying purchase or improvement debts, or a mortgage or deed of trust when the protection has been properly waived. It generally will not prevent your mortgage or home equity lender from enforcing a valid lien.
Tennessee Rules on Spousal Consent for Home Equity Financing
Tennessee is not a community property state. Ownership generally follows the property’s title during the marriage, although property can still be classified as marital property and divided equitably in a divorce. When your primary residence qualifies for Tennessee’s homestead exemption, Tennessee Code § 26-2-301 provides that the exemption cannot be transferred or waived without both spouses’ consent. As a result, a non-borrowing spouse generally needs to sign the deed of trust or related closing documents even when only one spouse is listed on the note or title. Signing the deed of trust does not necessarily make the non-borrowing spouse personally responsible for the loan. Requirements depend on the property’s title, occupancy, loan documents, and the title company’s review, so disclose your marital status and resolve any ownership questions early in the application process.
Apply for a Home Equity Loan or HELOC in Tennessee
Griffin Funding offers home equity financing throughout Tennessee, including Nashville, Memphis, Knoxville, Chattanooga, Clarksville, and communities across the state. Whether you want to renovate your home, invest, consolidate debt, or create a financial cushion, a HELOC or home equity loan lets you access your equity without replacing your current first mortgage. You can start by requesting a quote with a soft credit check to explore your eligibility and available options without affecting your credit score.
Reach out to a Tennessee loan officer to compare programs, or get started online today.
Reach out to a Tennessee loan officer to compare programs, or get started online today.
- Kent Garner, Griffin Funding Tennessee Loan Officer | NMLS# 1262819
- Cody Unger, Griffin Funding Tennessee Loan Officer | NMLS# 1295308
- Sarah Howell, Griffin Funding Tennessee Loan Officer | NMLS# 1333968
- Adam Ruvelson, Griffin Funding Tennessee Loan Officer | NMLS# 1283827
Griffin Funding Home Equity Financing: Where We Lend
Open the list below for local home equity guidelines, draw and repayment terms, and rate guidance from a loan officer licensed in your market.
Not sure if we lend in your state? Request a quick quote and a licensed loan officer will confirm home equity availability in your area.
Frequently Asked Questions
How much does a HELOC or HELOAN cost to close in Tennessee, and can I pay it off early? 
Most HELOCs and home equity loans have closing costs for services such as property valuation, title work, credit reports, loan processing, notarization, and recording. HELOC closing costs commonly range from $500 to $5,000, although your actual costs depend on the program, loan amount, property, and lender. Tennessee also charges a mortgage recordation tax of $0.115 per $100 of recorded debt, with the first $2,000 exempt. Some digital programs may waive appraisal or title requirements, which can reduce costs. Griffin Funding’s income-qualified home equity programs and DSCR HELOCs have no prepayment penalty. DSCR HELOANs come with or without a prepayment penalty; options with a penalty typically carry better pricing. Review your loan disclosures before signing. Learn more in our guide to HELOC closing costs.
Can I get a HELOC or HELOAN on a Tennessee investment property or second home?
Yes. Griffin Funding offers HELOCs and home equity loans for primary residences, second homes, and investment properties in Tennessee. Under Griffin Funding’s digital variable-rate HELOC guidelines, borrowers with a credit score of 720 or higher can access up to 90% combined loan-to-value (CLTV) on primary residences, second homes, and investment properties. Investment properties require full income documentation. Borrowing limits depend on the loan program, credit score, loan amount, income documentation, occupancy, and overall financial profile.
Investors who prefer not to document personal employment income can qualify using the property’s rental income through a DSCR home equity loan. Griffin Funding’s DSCR HELOAN program offers loan amounts from $100,000 to $500,000, requires a minimum credit score of 680 and a DSCR of at least 1.0, and allows up to 80% CLTV for borrowers with credit scores of 720 or higher.
What credit score do I need for a HELOC in Tennessee?
600. The minimum credit score for a Griffin Funding HELOC in Tennessee depends on the loan program, property type, requested credit-line amount, and combined loan-to-value (CLTV) ratio. Griffin Funding offers home equity options for credit scores starting at 600. Our digital HELOCs require a minimum score of 600, and traditional HELOCs and home equity loans start at 660.
Higher credit scores provide access to larger credit lines, higher CLTV limits, and more favorable interest rates. Borrowers with scores of 720 or higher can access up to 90% CLTV through Griffin Funding’s digital variable-rate HELOC on primary residences, second homes, and investment properties, subject to program requirements. Griffin Funding’s digital prequalification process uses a soft credit inquiry that doesn’t affect your credit score. A hard credit inquiry is required during the formal application or underwriting process.
Can I cancel my HELOC or home equity loan after closing in Tennessee?
Yes, if the loan is secured by your primary residence. Federal law generally gives you three business days to cancel after the transaction is completed and you receive the required disclosures and cancellation notice, whichever occurs last.
This right does not apply when the property is a second home or investment property rather than your principal dwelling. Federal regulations allow the waiting period to be waived only for a genuine personal financial emergency and require a dated written statement describing that emergency, signed by everyone entitled to cancel. A preprinted waiver form cannot be used. The lender must agree to the waiver.
Can I qualify for Tennessee home equity financing if I am self-employed?
Yes. Eligible self-employed borrowers may use 12 to 24 months (HELOC) or 12 months (HELOAN) of personal or business bank statements to verify income instead of relying solely on W-2s or tax returns. Bank statement documentation is available on many Griffin Funding HELOC and HELOAN programs for primary residences, second homes, and investment properties. However, it is not available with every option. For example, Griffin Funding’s fixed-rate digital HELOC currently requires full income documentation. Your available program and maximum loan amount will depend on the property type, loan size, credit profile, deposits, and other underwriting requirements.
Can I get a HELOC or HELOAN after bankruptcy?
Yes, after a four-year waiting period. Griffin Funding’s home equity programs require four years from the bankruptcy discharge or dismissal date. Once the four-year period has passed, Griffin Funding may consider your HELOC or HELOAN application as long as you’ve maintained a positive credit history, made your mortgage payments on time, and meet the program’s underwriting requirements.
If you’re still within the four-year waiting period, Griffin Funding offers recent credit event loans for borrowers recovering from bankruptcy, foreclosure, or another major credit event. These mortgage programs have different eligibility requirements and loan structures than traditional HELOCs and HELOANs, providing an alternative financing option before the four-year period ends.
Can I get a HELOC or home equity loan on a Tennessee investment property owned by an LLC?
Yes. Griffin Funding offers DSCR home equity loans for Tennessee investment properties titled in an LLC or corporation, allowing the property to remain in the entity’s name. Qualification is based primarily on the property’s rental income and debt-service coverage rather than personal employment income, eliminating the need for personal tax returns, W-2s, pay stubs, or personal debt-to-income calculations.
The fixed-rate DSCR home equity loan provides $100,000 to $500,000 as a lump sum, requires a minimum credit score of 680 and a DSCR of at least 1.0, and allows up to 80% combined loan-to-value (CLTV) for borrowers with credit scores of 720 or higher.
Griffin Funding also offers a DSCR HELOC for LLC-owned investment properties. This revolving credit line has separate credit score, DSCR, CLTV, and prepayment requirements. Entity, ownership, guaranty, title, and underwriting requirements apply to both programs.
Transferring a property out of an LLC or corporation to obtain financing can affect its title, insurance, taxes, liability protection, existing mortgage, and operating agreement. Confirm the financing structure with Griffin Funding, your title provider, insurer, and legal or tax adviser before changing ownership.