$0 Down · No PMI · Veteran-Owned
VA Loans in Tennessee
Tennessee pairs 440,000 veterans with no state income tax and the nation's fastest-growing military hometown: Clarksville, where Fort Campbell's 101st Airborne drives one of the highest-VA-volume housing markets in America. Millington's NSA Mid-South runs Navy personnel commands outside Memphis, and Arnold AFB's test complex anchors Tullahoma.
435K
Tennessee Veterans
3
Military Installations
$0
Down Payment
$832,750
2026 Baseline Limit
Why Tennessee
A VA team that knows Tennessee’s military markets
Clarksville has repeatedly ranked among the top cities nationally for VA loan volume — an ecosystem where agents, builders, and sellers all speak VA fluently, and where new construction competes hard for military buyers.
Fort Campbell's Kentucky-line post pushes most of its off-post housing demand into Clarksville — new-construction corridors along Exit 1, Exit 8, and Sango absorb constant PCS inflow. Millington serves Navy HR commands with Memphis's north suburbs, Tullahoma and Manchester host Arnold's engineers, and Nashville, Murfreesboro, and Knoxville hold large veteran populations in the state's boom markets.
Beyond the Loan
More Tennessee benefits you earned
The VA loan is one piece of what Tennessee owes its veterans. Here’s the rest of the stack — worth real money every year:
Income Tax
No state income tax
Tennessee taxes no earned income — retirement pay, disability compensation, and wages are all untouched.
Vehicle
Plates
Veteran and DV plates; fee waivers for qualifying 100% disabled Tennessee veterans.
Recreation
Licenses
Free hunting/fishing licenses for qualifying 100% disabled resident veterans.
Education
Tennessee STRONG
Tuition help for Tennessee National Guard members at state institutions.
Benefit rules and amounts change with each legislative session — confirm current details with the Tennessee Department of Veterans Services. When you work with us, we walk through which of these apply to your purchase and your budget.
Official VA Data
Tennessee VA lending, by the numbers
17,763
VA Loans Closed (FY2025)
$6.6B
VA Dollars Guaranteed (FY2025)
$372K
Average VA Loan
434,646
Veterans in TN
Tennessee veterans closed 17,763 VA loans in fiscal year 2025 — 9,904 of them home purchases — and the VA paid $3.9 billion in disability compensation and pension to Tennessee veterans in FY2024. Every veteran receiving that compensation is exempt from the VA funding fee.
Sources: VA Loan Guaranty loans-by-state report, FY2025 · VetPop2023 state projections (NCVAS) · VA Geographic Distribution of Expenditures, FY2024.
Bases We Serve
Military installations in Tennessee
Every installation below anchors a housing market our team lends in — PCS moves, first purchases on BAH, and buy-then-rent strategies included.
2026 BAH Rates
Compare BAH across Tennessee’s installations
BAH is set per housing area, not per state — and it counts as qualifying income on a VA loan. Here’s how Tennessee’s duty stations compare at key pay grades.
| Installation | E-4 | E-5 | E-6 | E-7 | O-3 |
|---|---|---|---|---|---|
| Fort Campbell (TN side) | $1,743 | $1,815 | $2,100 | $2,244 | $2,496 |
| NSA Mid-South | $1,992 | $2,154 | $2,319 | $2,337 | $2,352 |
| Arnold Air Force Base | $1,320 | $1,425 | $1,725 | $1,794 | $1,917 |
2026 monthly BAH, with dependents, from official DoD (DTMO) rate data. Click any installation for all 24 pay grades, without-dependents rates, and a payment-vs-BAH estimator for that housing area.
2026 Program Facts
What the VA loan gets you in Tennessee
$0 Down Payment
Buy with no down payment on loans within your entitlement — the signature VA benefit.
No PMI
VA loans never charge monthly private mortgage insurance, keeping payments lower than FHA or low-down conventional.
Competitive Rates
The VA guaranty lets lenders price VA loans below comparable conventional rates for most borrowers.
Flexible Credit
The VA sets no minimum credit score — guidelines focus on residual income and the whole picture.
Limited Closing Costs
The VA restricts which fees veterans can be charged, and sellers may pay all of them plus concessions.
Reusable for Life
VA entitlement is a lifetime benefit — it can be restored and reused, and you can hold more than one VA loan at once.
VA loan vs. conventional in Tennessee
| Feature | VA Loan | Conventional |
|---|---|---|
| Down payment | $0 required | 3–20% (20% to avoid PMI) |
| Monthly mortgage insurance | Never | Required under 20% down |
| Minimum credit score | None set by VA | Typically 620+ |
| Interest rates | Typically below conventional | Higher without large down payment |
| Upfront fee | Funding fee 2.15% first use (waived with disability rating) | None |
| Prepayment penalty | Never | Rare, but possible |
| Loan limit | None with full entitlement | $832,750 baseline (2026) |
| Assumable by a buyer | Yes — VA loans are assumable | Generally not |
2026 VA loan limits in Tennessee
With full entitlement, the VA does not cap your loan amount — county loan limits only apply when you have reduced entitlement (an existing VA loan or a prior default). For reduced-entitlement borrowers, the 2026 baseline county limit is $832,750, and designated high-cost counties range up to $1,873,675.
The VA funding fee, plainly
- First use, under 5% down: 2.15%
- Subsequent use, under 5% down: 3.30%
- With 5% down: 1.50% · with 10% down: 1.25%
- Streamline refinance (IRRRL): 0.50%
Veterans receiving VA disability compensation at any rating are fully exempt from the funding fee, as are eligible surviving spouses and Purple Heart recipients on active duty.
Where We Lend
Tennessee cities we serve
From base-gate communities to the metros veterans choose after service, these are the Tennessee markets where our VA lending is most active.
- Clarksville~$322K
- Millington~$243K
- Memphis~$147K
- Nashville~$437K
- Murfreesboro~$430K
- Tullahoma~$299K
- Knoxville~$377K
Typical home values: Zillow Home Value Index, 2026-06.
Straight Answers
Tennessee VA loan questions, answered
Is there a VA loan limit in Tennessee?
Not with full entitlement. With reduced entitlement, most counties use the $832,750 baseline while Nashville's Davidson and surrounding counties carry elevated 2026 limits reflecting the metro's prices.
Where do Fort Campbell families buy in Clarksville?
Sango and Exit 8 for schools and newer builds, Exit 1 for gate proximity, Oak Grove and Hopkinsville on the Kentucky side for the lowest entry prices — we're licensed in both states and quote both sides.
Is Clarksville new construction VA-friendly?
Extremely — Clarksville builders court VA buyers with closing-cost incentives, and VA appraisals on new builds are routine. It's one of the easiest new-construction VA markets in the country.
Does Tennessee tax military retirement?
Tennessee has no state income tax at all — retirement pay, VA disability, and civilian wages are all untaxed. Property taxes are moderate, and 100% P&T vets get relief on the first $175,000 of value.
Can I buy near Nashville on a veteran income?
Murfreesboro, Smyrna, and La Vergne offer the metro's attainable corridor with strong appreciation history. Full entitlement carries no cap, so income qualification — not a loan limit — sets your ceiling.
Ready When You Are
Start your Tennessee VA loan with a team that’s worn the uniform
Get a clear pre-approval, honest numbers, and a VA process handled by people who understand PCS timelines and military life firsthand.