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9 best mortgage lenders in Tennessee
Our top picks for low rates, refinancing, first-time homebuyers and customer service in the Volunteer State.
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Home to the Great Smoky Mountains and the Nashville music scene, nearly seven million people call Tennessee home. Around 66% of Tennesseeans own their property and pay an average of $1,244 per month in ownership costs, including mortgage payments, taxes and utilities — which is below the national average.
According to Zillow, the average price of a house in Tennessee is $207,727 as of March 2021. Home values in the state have gone up 10.3% over the past year. So if you want to buy a new home or get a low-rate mortgage refinance, our top nine lenders are a great place to start your search.
Best Tennessee mortgage lenders in 2021
- Most popular: Rocket Mortgage
- Best online experience: Better
- Best marketplace: LendingTree
- Best for a wide range of credit scores: Mr. Cooper
- Best Regional Lender: Mortgage Investors Group (MIG)
- Best for refinancing: Freedom Mortgage
- Best for first-time homebuyers: Home Point Financial
- Best customer service: Synergy One Lending
- Best rates: Y-12 Federal Credit Union
How we picked the best lenders
We hand-selected these lenders from 200 mortgage companies originating home loans in Tennessee. These top nine picks made our list after researching and comparing interest rates, first-time homebuyer programs, credit score eligibility, customer service and technology.
We also read customer reviews from consumer rating sites like Zillow, Trustpilot and the Better Business Bureau (BBB) in making our decisions. To learn about our lender selection process, please see Finder’s rating methodology.
Most popular
Rocket Mortgage
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Rocket Mortgage is a fully digital lender that allows you to apply for a loan from anywhere, without the need for a loan officer. Currently, Rocket Mortgage is the number one lender in the US, with nearly one out of 10 borrowers using the company for their home loan in 2020.
Start by getting prequalified on the Rocket Mortgage website to see your available rates. When you're ready to apply for a loan, Rocket Mortgage's application can sync with your bank for a quicker, more streamlined process.
- Instant verification. With Rocket Mortgage, you'll know instantly how much mortgage you prequalify for.
- Support available. Although Rocket Mortgage is a digital lender, human support is available if you need it.
- Servicing with Quicken Loans. Rocket Mortgage is owned by Quicken Loans, so you'll receive the benefits of Quicken Loan servicing, including multiple payment options.
- Loans not listed. You'll need to call RocketLoans or fill out an application to see your mortgage and rate options.
- Customer complaints. Rocket Mortgage's parent company, Quicken Loans, has had 792 complaints closed with the BBB in the last three years.
| Loan types | Conventional, Jumbo, FHA, VA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 580 VA: 620 Jumbo: 700 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best online experience
Better
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Better is a 100% digital lender that never charges loan origination fees or lender's commissions. The company offers a range of purchase and refinance loans, lists its interest rates online and can provide you with a loan estimate in minutes.
Since 2016, Better has funded more than $25 billion in loans and can help find you a real estate agent or assist with your title and homeowner's insurance through its Better Settlement Services and Better Cover divisions.
- Save on fees. Better never charges origination, application, processing or underwriting fees.
- Assistance available. While Better is a digital lender, loan officers can speak with you if you need assistance.
- Informative website. Better's website is packed with helpful resources, including calculators and homebuying guides.
- Limited loan selection. Better doesn't have VA, USDA, construction loans or specialized loan products at this time.
- Loans are sold. Better is a secondary lender, which means your loan will be sold after closing.
| Loan types | Conventional, Jumbo, FHA, Refinance |
|---|---|
| Minimum credit score | Refinance: 680
All other loans: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Not available in: HI, MA, MN, NV, NH, VT, VA |
Best marketplace
LendingTree
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
LendingTree is a 100% free marketplace where you can compare mortgages. Instead of having to research companies yourself, LendingTree will take your information and match you up to lenders from its database of 1500+ partners nationwide.
To use the service, visit the LendingTree website or download the LendingTree app and fill out a form with some information. Within minutes, you should start seeing real-time offers from multiple lenders for you to compare.
- Competitive offers. LendingTree's partners compete against each other, so you may get a better deal through the service.
- Loan selection. Choose from conventional, FHA, VA and USDA loans, reverse mortgages and HELOCs.
- Rate alerts. LendingTree searches interest rates and will notify you when a lower rate than your current one is found.
- Consumer complaints. Over 200 customers have filed complaints against LendingTree on the BBB website. Complaints are related to excessive calls, hard credit checks and financial scams.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 500 VA: 620 USDA: 640 Jumbo: 800 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best for a wide range of credit scores
Mr. Cooper
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
If you're concerned about a lower credit score, Mr. Cooper may be able to help. This company offers a range of loans, including conventional, jumbo and government-backed loans and may have greater credit score flexibility than some lenders.
Headquartered in Dallas, Texas, Mr. Cooper has a 100% US-based advisor team, a convenient app for making electronic payments and special benefits for existing customers. To get started, visit the website and get in touch with a loan officer.
- Close On Time Guarantee. If your approved loan doesn't close on time, Mr. Cooper will send you a check to cover your first month's mortgage payment.
- User-friendly app. The full-featured Mr. Cooper app allows you to make payments, view your loan documents and more.
- Won't sell your loan. Selling mortgages after closing is a common practice for other lenders. But with Mr. Cooper, you don't need to worry about your loan being sold.
- No online application. Unlike other lenders, Mr. Cooper doesn't have an online prequalification or loan application option.
- No USDA loans. Mr. Cooper doesn't have USDA loans at this time.
- Mixed reviews. While many customers report positive experiences, others complain of poor service and a lack of professionalism.
| Loan types | Conventional, Jumbo, FHA, VA, Home Equity, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best Regional Lender
Mortgage Investors Group
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Mortgage Investors Group (MIG) is a growing regional lender in the Southwest that comes highly rated by past customers. The company has 29 branch locations across 10 states and provides on-site underwriting, processing and appraisal services.
MIG offers a wide range of mortgage products, including state-specific programs to help first-time homebuyers with low to moderate income. MIG has been the Tennessee Housing Development Agency's (THDA) top lender since 2003.
- Loan selection. MIG has a variety of home loans for experienced and first-time homebuyers, including low-income buyer programs.
- Willing to work with bad credit. You can provide a written explanation about negative credit to help bolster your application.
- Customer reviews. The company has thousands of favorable reviews, with customers reporting positive experiences with their loan officers.
- Slow prequalification. You must fill out a lengthy application and wait up to 24 hours for a rate quote.
- Rates and fees not listed. The MIG website doesn't advertise its current rates or fees.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Home Equity/HELOC, Reverse, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Only available in: AL, AR, FL, GA, KY, MO, MS, NC, SC, TN |
Best for refinancing
Freedom Mortgage
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
For over 30 years, Freedom Mortgage has been helping homebuyers, with a focus on military members and their families. The company offers a range of government-backed loans, including a VA IRRRL streamline loan for easier refinancing.
Freedom Mortgage is one of the top originators of VA and FHA loans in the nation and comes highly recommended by past customers. To get started, visit the website to locate a loan officer in your area.
- Low refinance rates. Freedom Mortgage has some of the lowest refinance rates in Tennessee as of March 2021.
- Mortgage calculators available. The company has multiple calculators to help you determine your payment in a range of situations.
- Insurance integration. Freedom Mortgage partners with Matic Insurance to provide insurance for your home.
- No online application. To apply for a home loan, you need to contact a Freedom Mortgage loan officer first.
- Limited loan types. If you want a reverse mortgage or HELOC, you'll need to look elsewhere.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Refinance |
|---|---|
| Minimum credit score | Conventional: 620
FHA: 540 VA: 580 USDA: 640 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best for first-time homebuyers
Home Point Financial
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Founded in 2015, Home Point Financial is one of the nation's top nonbank lenders, with a network of over 5,500 broker and correspondent partners. The company offers a range of conventional and government-backed loans, including FHA, VA and USDA loans.
Home Point Financial's website is clear and straightforward to navigate, offering a range of helpful articles and guides for first-time homebuyers. Browse the various topics and when you're ready to apply, contact a loan officer to get started.
- Range of loan types. Home Point Financial provides a wide selection of home loans, including specialized loans for low-income borrowers or high-value homes.
- Helpful website. Home Point Financial's website is clear to navigate and contains guides, articles, videos and calculators to help you find the right loan.
- Limited branch offices. Depending on your location, a Home Point Financial branch may not be available.
- Mixed customer reviews. While many customers rave about the company's service, others have reported poor communication, misinformation and unexpected costs.
| Loan types | Conventional, FHA, VA, USDA, HELOC, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 3% |
| States available | Available in all states |
Best customer service
Synergy One Lending
620
Min. credit score
Min. credit score
3%
Min. down payment
Min. down payment
Synergy One Lending (S1) aims to provide the right mix of technology and people for a better lending experience. The company has a wide selection of loans, including conventional and government-backed loans, renovation loans and more.
S1 offers a straightforward loan application process, including an option to verify your assets electronically. To get started, visit the website or download the S1 Connect app, where you can apply for and track your loan right from your mobile.
- S1 Connect app. Lets you apply for a loan, upload and eSign documents and communicate with your loan officer.
- Positive reviews. Synergy One Lending has a 4.9 out of 5 rating on Zillow, where customers report being thrilled with the exceptional service of their loan officers.
- 10-day close offer. The company has a 10-day close offer to help buyers compete with all-cash offers. Valid for Fannie Mae purchase loans.
- Fees not listed. The Synergy One Lending website doesn't list its costs or fees.
- No HELOCs. If you're after a HELOC, you'll need to look for another lender.
| Loan types | Conventional, Jumbo, FHA, VA, USDA, Reverse, Refinance |
|---|---|
| Minimum credit score | 620 |
| Minimum down payment (Conventional) | 3% |
| States available | AL, AR, AZ, CA, CO, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NE, NM, OH, OK, OR, SC, SD, TN, TX, UT, WA, WI, WY |
Best rates
Y-12 Federal Credit Union
620
Min. credit score
Min. credit score
0%
Min. down payment
Min. down payment
Founded in 1950, Y-12 Federal Credit Union is a Tennessee-only credit union that offers a range of home loans, including a 100% financing loan with no private mortgage insurance (PMI). The credit union has, on average, the lowest rates of all lenders we compared in March 2021.
If you'd like to get started, either call a loan officer at a local branch or visit the Y-12 Federal Credit Union website. From there, you'll be guided to select a loan officer and start an application on the loan officer's personal webpage.
- 100% financing mortgage. Allows you to apply for a home loan, even if you don't have a down payment saved up.
- Rates listed. Y-12 Federal Credit Union advertises its interest rates on its website so you can quickly compare.
- Range of financial products. The credit union has a wide range of personal and business financial products and electronic services for managing your accounts.
- Limited availability. Membership is only available to residents in Anderson, Blount, Campbell, Knox, Loudon, Roane, Sevier and Union counties.
- No FHA or VA loans. If you're after these government-backed loans, you'll have to look elsewhere.
| Loan types | Conventional, Jumbo, USDA, Home Equity/HELOC, Refinance |
|---|---|
| Minimum credit score | Conventional: 620 |
| Minimum down payment (Conventional) | 0% |
| States available | Only available in: TN |
Which lender is best for me?
With hundreds of lenders available in Tennessee, narrowing down the choices can feel overwhelming. The good news is that it’s possible to hone in on the right lender by considering what’s important to you.
Here are some tips:
- Consider all costs. While interest rates are important, consider a loan’s down payment and PMI requirements, points, term length, closing costs and other fees.
- Find a lender that fits. Do you want an in-person lender, a fully digital lender or something in between? Read online reviews to determine if a lender will be a good fit.
- Ask the lender questions:
- What is my APR?
- Do I need to buy points?
- What fees do you charge?
- What are the total closing costs?
- How long can I lock my interest rate for?
- How long will the process take?
- Who is my contact person if I need help?
- Will you sell my loan after closing?
- Are there prepayment penalties?
- Get several quotes. Always get a minimum of three or four quotes so you can compare offers and negotiate a better rate.
Compare mortgage lenders
Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.Average rates and fees in Tennessee
As of March 2021, the benchmark 30-year fixed mortgage rate in the US is 3.29%. According to data from the Consumer Financial Protection Bureau (CFPB), most Tennessee lenders are offering interest rates at or below 2.375%, with rates in the state ranging from 2.00% to 4.625% as of this writing.
Additionally, you can expect to pay around $3,745 after taxes for closing costs, or approximately 1.25% to 1.87% of your home’s final sale price, according to data from ClosingCorp. Research mortgage rates in Tennessee and closing costs for more details on what you can expect to pay.
What about brokers?
Aside from LendingTree, our list of Tennessee lenders are companies that provide mortgage loans directly to consumers. However, if you don’t have the time to compare mortgage loans and rates yourself, a mortgage broker can do the work for you.
With a broker, you’ll pay around .5% to 2% of your loan’s value in commissions, but be wary of excessive fees. Many lenders offer free prequalification online, so you may discover you can find a low rate on your own, minus a broker’s commission.
Bottom line
Whether you’re a first-time homebuyer or want to refinance your current mortgage, many options exist. If one lender doesn’t have the right loan for your situation, another likely will. While our top Tennessee lender picks will be perfect for many borrowers, compare more lenders if you still need help finding the right fit.
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