Tennessee Mortgage Qualification Estimator

Yes, you can keep the marital home if you can qualify for a mortgage independently and buy out your ex-spouse's equity share. Under Tennessee's equitable distribution law (TCA Title 36, Chapter 4), courts divide property fairly but not necessarily 50/50. You must refinance to remove your ex from the mortgage—a quitclaim deed transfers ownership but not loan liability.

Lenders require a debt-to-income ratio below 43% (some allow 50% for strong borrowers), meaning your monthly debts including the new mortgage payment cannot exceed 43% of gross income. THDA's Great Choice program requires a minimum 640 credit score and offers down payment assistance up to $15,000. Alimony or child support you receive can count as income if documented for 6+ months with 36+ months remaining.

Yes, Tennessee alimony counts as qualifying income if you have received consistent payments for at least 6 months and the court order requires payments to continue for 36+ months after closing. Lenders require the divorce decree, payment history (bank statements or cancelled checks), and may verify payments directly. Child support follows the same documentation requirements.

Yes, refinancing is typically required to remove your ex-spouse from the mortgage. Tennessee divorce decrees commonly require refinancing within 90–180 days of final judgment. A quitclaim deed transfers property ownership but does not release the other spouse from mortgage liability—both remain responsible to the lender until refinancing occurs.

Tennessee's median home price ranges from $311,678 to $384,500 depending on the data source and property type, as of early 2026. Single-family homes average $330,000–$383,000, while condos average around $361,750. Nashville and suburban areas trend higher, while rural counties remain more affordable. Prices increased 0.5–1.1% year-over-year.

Divorce itself does not directly impact your credit score, but financial consequences often do. Joint accounts where payments are missed, closed accounts reducing available credit, and increased debt-to-credit ratios all cause damage. If your ex-spouse fails to pay a joint mortgage per the divorce decree, it still appears on your credit report—refinancing is the only protection.

THDA's Great Choice Home Loan offers 30-year fixed-rate mortgages with down payment assistance of $6,000 (forgivable) or up to $15,000 (amortizing). Homeownership for Heroes provides a 0.5% rate reduction for veterans, military, and first responders. Local programs include up to $25,000 in Memphis and $35,000 through The Housing Fund statewide for qualifying buyers.

Yes, funds received from a property settlement, retirement account division, or cash buyout can be used for a down payment. Lenders require documentation showing the source of funds—typically the divorce decree and settlement agreement. Large deposits must be sourced and seasoned (in your account) for at least 60 days, or fully documented with legal paperwork.