How Much Do I Need for a Down Payment in Murfreesboro TN?
Down payment requirements by loan type, what closing costs to plan for, and Tennessee assistance programs that can reduce what you need to bring to closing.
See RequirementsHow Much Do I Need for a Down Payment in Murfreesboro TN?
How much you need for a down payment in Murfreesboro TN depends on which loan type you use. VA and USDA loans require no down payment for eligible buyers. FHA loans require 3.5 percent down with a qualifying credit score. Conventional loans start at 3 percent down for first-time buyers and go up to 20 percent to avoid private mortgage insurance. Tennessee’s THDA Great Choice program can reduce or eliminate the down payment requirement through assistance funding.
Down payment is only part of what you need to bring to closing. Closing costs in Tennessee typically add another 2 to 4 percent of the purchase price on top of the down payment. On a home near the current Murfreesboro median price, that means budgeting for both your down payment and several thousand dollars in closing costs unless a seller concession or assistance program covers part of them.
Down Payment Requirements by Loan Type
Requirements below are standard program minimums. Your lender may have additional requirements based on your credit profile and the property type.
| Loan Type | Minimum Down Payment | Who Qualifies | Notes |
|---|---|---|---|
| VA | 0% | Eligible veterans, active military, surviving spouses | No monthly mortgage insurance. One of the strongest loan products available for those who qualify. VA funding fee applies in most cases. |
| USDA | 0% | Buyers in eligible rural and suburban areas with income within USDA limits | Parts of Rutherford County may qualify. Confirm property eligibility through the USDA eligibility map before assuming the home qualifies. |
| FHA | 3.5% (with 580+ credit score) | Most buyers; accessible with lower credit scores | Mortgage insurance premium required for the life of the loan in most cases. Can be paired with THDA assistance to cover the down payment. |
| Conventional | 3% to 5% for first-time buyers; 20% to avoid PMI | Buyers with 620+ credit score | Private mortgage insurance required below 20% down but can be removed once equity reaches 20%. Better rates with higher scores and larger down payments. |
| THDA Great Choice | As low as 0% with assistance | First-time buyers meeting income and purchase price limits in Tennessee | Down payment assistance of up to 6% of the loan amount available. See the TN buyer programs page for full details and current limits. |
Do Not Forget Closing Costs
Closing costs are separate from your down payment and are due at the closing table. In Tennessee, buyers typically pay between 2 and 4 percent of the purchase price in closing costs, which includes lender fees, title insurance, recording fees, prepaid property taxes, and homeowner’s insurance. On a home near the current Murfreesboro median price, plan for several thousand dollars in closing costs on top of your down payment.
Seller concessions can help. In some transactions, the seller agrees to pay a portion of the buyer’s closing costs as part of the negotiated terms. Whether that is realistic depends on current market conditions and how much competition exists for the home you are buying. Your buyer’s agent can advise on when asking for a concession makes sense and how to structure it.
Start with a buyer consultation with the Turner Victory Team. We will walk through what you need to bring to closing, which loan types make sense for your situation, and whether a seller concession or assistance program is a realistic part of your strategy in the current market. Then we connect you with the right lender. For current Murfreesboro market conditions see Tru Insights.
How Much Do I Need for a Down Payment?
Start with a Buyer Consultation
Before you talk to a lender or look at a single home, let us walk through what you need to bring to closing, which loan types fit your situation, and what the current market looks like at your price point.
Schedule a Buyer ConsultationFirst-Time Buyer Programs That Can Help
THDA Great Choice and other Tennessee programs can reduce or eliminate your down payment requirement. Income limits and purchase price caps apply. See the full breakdown.
See TN Buyer Programs