Tennessee First-Time Homebuyer Guide
Everything you need to know about buying your first home in Tennessee — from property taxes and insurance costs to down payment assistance programs that can save you thousands.
Key homebuying statistics for Tennessee
Property Tax Rate
0.56%
Below national avg (1.10%)
Avg. Annual Insurance
$1,800
Above national avg ($1,700)
Closing Cost Estimate
3.00%
At national avg (3.00%)
Data last verified: February 2026. Found incorrect data? Email us .
What These Numbers Mean for You
On a $350,000 home in Tennessee:
Annual property taxes
~$1,960
~$163/month
Annual homeowner's insurance
~$1,800
~$150/month
Estimated closing costs
~$10,500
Due at closing
These are estimates. Actual costs depend on your specific property, lender, and county. Use our calculators below for personalized estimates.
Buying a Home in Tennessee
Tennessee offers unique opportunities and challenges for first-time homebuyers. Understanding local costs is essential before you start house hunting, because property taxes, insurance, and closing costs vary significantly from state to state and can add hundreds of dollars to your monthly payment.
Good news: Tennessee's property tax rate of 0.56% is below the national average of 1.10%, which means lower monthly costs compared to many other states. Homeowner's insurance in Tennessee also runs higher than average at $1,800/year, so be sure to shop around for competitive quotes.
As a first-time buyer, you likely qualify for one or more down payment assistance programs specific to Tennessee. These programs can significantly reduce the upfront cash you need to purchase a home. Check the programs listed below and reach out to a local HUD-approved housing counselor for personalized guidance.
Tennessee Down Payment Assistance Programs
Great Choice Home Loan
Below-market-rate mortgage with up to 5% in down payment assistance as a forgivable second mortgage.
Homeownership for the Brave
Additional 0.5% interest rate reduction on Great Choice loans for veterans and active military members.
Program details and eligibility requirements change. Visit each program's website for the most current information.
Try Our Calculators with Tennessee Data
Mortgage Payment Calculator
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Affordability Calculator
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Down Payment Calculator
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Closing Costs Estimator
Get a breakdown of expected closing costs for your purchase.
Amortization Schedule
See how your loan balance decreases over time with each payment.