USDA Loan Lenders in Tennessee 2026: Top 7 Ranked
Brian Taylor
Tennessee Rural Housing Specialist | USDA Expert | 12+ Years
January 22, 2026
Looking for USDA loan lenders in Tennessee? Tennessee has 1,500+ USDA-approved lenders, but only 7 consistently deliver the best rates, fastest approvals, and rural TN expertise.
6.05%
Average USDA Rate
0%
Down Payment
95%
TN Eligible Areas
$0
Closing Costs*
🏆 Top 7 USDA Lenders in Tennessee 2026
Guaranteed Rate - Best USDA Lender Tennessee
3,800+ TN USDA loans
Why #1:
- 💰 Lowest USDA rates: 5.95%-6.15% APR
- ⚡ Close in 32 days average
- 🏆 #1 USDA lender in TN (2025)
- 📍 Knows all 95 TN counties
- 🎯 $0 closing costs option
Best For:
TN rural buyers who want fastest approval + lowest rates
📍 USDA Eligible Areas in Tennessee 2026
🎉 95% of Tennessee is USDA-eligible!
Tennessee has one of the HIGHEST USDA eligibility rates in America. Almost every area outside major cities qualifies.
✅ USDA-Eligible Areas (95%)
- • Nashville suburbs: Murfreesboro, Franklin, Clarksville, Hendersonville, Smyrna
- • Memphis suburbs: Bartlett, Collierville, Germantown, Cordova
- • Knoxville suburbs: Maryville, Farragut, Oak Ridge, Sevierville
- • Chattanooga suburbs: Cleveland, Soddy-Daisy, East Ridge
- • All rural counties: 87 of 95 TN counties
❌ NOT USDA-Eligible (5%)
- • Nashville: Downtown + Midtown only
- • Memphis: Downtown core only
- • Knoxville: Downtown core only
- • Chattanooga: Downtown core only
Note: Even 10-15 minutes outside these downtowns = USDA-eligible!
💡 Pro Tip:
Use the USDA Eligibility Map to check if your TN property qualifies. Enter the address and it shows instantly!
✅ Tennessee USDA Loan Requirements 2026
Income Requirements
1-4 Person Household:
Max $103,500/year (most TN counties)
5-8 Person Household:
Max $136,600/year (most TN counties)
High-Cost TN Counties:
Davidson, Williamson: Up to $124,200
Other Requirements
Credit Score:
640+ recommended (no USDA minimum)
Down Payment:
0% required (100% financing)
DTI Ratio:
41% max (29% front-end)
Property Type:
Single-family, townhome, condo (USDA-approved)
💰 USDA Loan Costs Tennessee 2026
Example: $280,000 TN Home Purchase
💡 $0 Closing Costs Option:
Many TN USDA lenders offer $0 closing costs by rolling them into the loan or using lender credits. Ask about this option!
❓ FAQ: USDA Loans Tennessee 2026
Can I get a USDA loan near Nashville or Memphis?
YES! Most Nashville and Memphis suburbs are USDA-eligible.
Nashville USDA-Eligible Suburbs:
- Murfreesboro, Franklin, Clarksville (15-25 min from downtown)
- Hendersonville, Smyrna, Gallatin (15-20 min from downtown)
- Mount Juliet, Lebanon, Spring Hill (20-30 min from downtown)
Memphis USDA-Eligible Suburbs:
- Bartlett, Collierville, Germantown (15-20 min from downtown)
- Cordova, Lakeland, Arlington (15-25 min from downtown)
What is the income limit for USDA loans in Tennessee?
Most TN Counties:
- 1-4 person household: $103,500/year
- 5-8 person household: $136,600/year
High-Cost TN Counties (Davidson, Williamson):
- 1-4 person household: $124,200/year
- 5-8 person household: $164,000/year
Note: Income includes ALL household members over 18, not just borrowers.
How long does USDA loan approval take in Tennessee?
Average Timeline: 32-45 days
Breakdown:
- Pre-approval: 1-3 days
- Home search: 30-60 days
- Offer accepted: Day 1
- Appraisal: Day 7-14
- USDA underwriting: Day 14-32
- USDA final approval: Day 32-37
- Closing: Day 37-45
Tip: USDA loans take 5-10 days longer than conventional due to USDA final approval step.