Licensed in Tennessee
Tennessee Home Equity Loans & HELOCs
Rapid growth in Middle Tennessee has pushed home values up quickly, especially around Nashville, Franklin, and Murfreesboro. Many Tennessee homeowners now have more equity than they expected - and a recording tax on new mortgages that is worth knowing about before you apply.
Tennessee Housing at a Glance
- Median home value
- $286,700
- 14% below the U.S.
- Homeownership rate
- 66.9%
- U.S.: 65.2%
- Monthly owner costs (with a mortgage)
- $1,566
- 20% below the U.S.
- Median household income
- $69,595
- 14% below the U.S.
Source: U.S. Census Bureau, American Community Survey 5-year estimates (2020-2024). Population: 7,315,076 (July 2025 estimate).
How Much Could You Borrow in Tennessee?
Lenders cap your combined loan-to-value (CLTV) ratio - everything you owe on the home, including the new loan or line, divided by its value. Here is what that means for a Tennessee home at the state median value of $286,700 with a $143,350 mortgage balance:
| CLTV limit | Maximum total debt | Available to borrow |
|---|---|---|
| 80% | $229,360 | $86,010 |
| 85% | $243,695 | $100,345 |
| 90% | $258,030 | $114,680 |
Illustration only. Your borrowing amount depends on your appraised value, mortgage balance, credit, income, and lender approval. Run your own numbers.
What Tennessee Homeowners Should Know
Tennessee mortgage recording tax
Tennessee charges an indebtedness tax of $0.115 per $100 on recorded mortgages, with the first $2,000 exempt. On a $100,000 home equity loan or HELOC that is about $113. For a HELOC, the tax is based on the maximum credit line.
No state tax on wage income
Tennessee does not tax wage income, so any tax benefit from home equity interest is federal only - and applies only when the funds buy, build, or substantially improve the home securing the loan.
Fast-changing values
In fast-growing counties, an online estimate can lag the market in either direction. The lender relies on a current appraisal or valuation, so your final credit limit may differ from early estimates.
HELOC or Home Equity Loan?
HELOC (home equity line of credit)
A revolving line with a variable rate. Draw what you need during the draw period and pay interest only on what you use. Best for projects paid in stages or ongoing expenses.
How a HELOC worksHome equity loan
A lump sum with a fixed rate and the same payment every month. Best when you know the exact amount you need, like a quoted renovation or a debt payoff.
How a home equity loan worksLicensing and Consumer Protection in Tennessee
Mortgage lending in Tennessee is supervised by the Tennessee Department of Financial Institutions. Before you apply with any company, confirm its license on NMLS Consumer Access.
If you have a problem with a lender, you can contact the Tennessee Department of Financial Institutions or submit a complaint to the Consumer Financial Protection Bureau.
We serve homeowners throughout Tennessee, including Nashville, Memphis, Knoxville, Chattanooga, Clarksville, Murfreesboro, and Franklin.
Tennessee Home Equity FAQs
Common questions from Tennessee homeowners about HELOCs and home equity loans.
Can I get a HELOC or home equity loan in Tennessee?
Yes. National HELOC Rates is licensed to offer home equity products in Tennessee. Applications are completed online with our lending partner, Spring EQ, and are subject to credit, income, and property approval.
How much could I borrow against a typical Tennessee home?
The median Tennessee home is valued at $286,700. If you owed $143,350 on that home and a lender allowed an 85% combined loan-to-value ratio, you could borrow up to about $100,345. Your actual amount depends on your appraisal, credit, income, and the lender's limits.
Are there taxes on a home equity loan in Tennessee?
Yes. Tennessee imposes a mortgage indebtedness (recording) tax of $0.115 per $100 of the amount secured, with the first $2,000 exempt. It is paid at closing and is part of your closing costs.
What credit score do I need for a home equity loan in Tennessee?
Many home equity lenders look for a credit score of at least 620 to 680, with the best pricing typically at 740 and above. Lenders also review your debt-to-income ratio (often 43% to 50% maximum) and how much equity remains after the new loan.
How long does it take to get a HELOC in Tennessee?
Many applicants close within a few weeks. Timing depends on how quickly you provide documents, the appraisal or valuation method, title work, and scheduling. For a primary residence, federal law gives you three business days after closing to cancel before funds are released.
Ready to Use Your Tennessee Home Equity?
Check your rate online. You'll complete your application securely with Spring EQ.