Income Needed to Buy in Nashville
Common Question: 'How much income do I need to buy a house in Nashville?' Based on the median home price of $460,000, lenders typically look for an annual household income of roughly $32,200. This ensures your payment stays below 28% of your gross pay.
Closing Costs in Tennessee
Don't forget cash to close. In Tennessee, buyer closing costs typically range from 2% to 5%. For a home in Nashville, you should budget between $9,200 and $23,000 on top of your down payment.
Rent vs Buy in Nashville
Is it better to rent or buy in Nashville? With a calculated monthly payment of ~$3,220, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future Tennessee inflation.
Hidden Costs: Property Taxes
Generic calculators often get Nashville wrong because they underestimate taxes. Our Nashville Mortgage Calculator uses the specific Tennessee property tax rate of 0.65%, which adds roughly $249/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in Nashville often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.