USDA Loans in Sumner County TN: Who Qualifies in 2026
USDA loans let eligible buyers purchase a home with no down payment, but the property must be in a USDA-eligible area. Most of Hendersonville and much of Gallatin generally are not eligible. Portland, Westmoreland, and rural parts of Sumner County often are. For 2026, households of 1–4 people in Sumner County can earn up to $133,550.
If you love Sumner County but your savings are thin, a USDA Guaranteed loan may help you buy a few miles outside town. Here’s who qualifies, what changed on October 1, and how to check a specific address before you make an offer.
Key Takeaways
- No down payment is required for eligible USDA Guaranteed loans on a primary residence.
- Location matters: Hendersonville and most of Gallatin are generally ineligible, while Portland, Westmoreland, Cottontown, Bethpage, and Castalian Springs areas are generally eligible.
- 2026 income limits for Sumner County (Nashville metro area): $133,550 for 1–4 people and $176,300 for 5–8 people.
- Lower fees since October 1, 2026: a 1.00% upfront guarantee fee and 0.35% annual fee.
- Always check the exact address on USDA’s eligibility map.
Which Sumner County Areas Qualify for USDA Loans?
USDA’s eligibility map changes over time, and borders can split neighborhoods. Here’s a general guide:
| Area | Typical USDA status | Notes |
|---|---|---|
| Hendersonville (pop. 61,753 in 2020) | Generally not eligible | Too large for USDA’s rural definition |
| Gallatin (pop. 44,431) | Mostly not eligible | Some outlying areas may qualify |
| Portland (pop. 13,156) | Generally eligible | Popular for newer subdivisions |
| Westmoreland (pop. 2,718) | Generally eligible | Rural, near the Kentucky line |
| Cottontown, Bethpage, Castalian Springs | Generally eligible | Larger lots and farmland |
Area guidance is general and comes from local real estate sources. Only USDA’s map can confirm a specific property.
To check an address, enter it on the USDA eligibility site under “Single Family Housing Guaranteed.” If the home sits in a shaded area, it’s generally not eligible.
What Are the 2026 USDA Income Limits in Sumner County?
USDA Rural Development published updated income limits on July 13, 2026. Sumner County is part of the Nashville metro HUD area, which has higher limits than the Tennessee default:
| Household size | Sumner County limit (2026) |
|---|---|
| 1–4 people | $133,550 |
| 5–8 people | $176,300 |
For comparison, the Tennessee default limit for 1–4 people in counties outside higher-cost metro areas is $122,800.
USDA counts income from all adults in the household, not only the people on the loan. Lenders can subtract some allowable deductions, such as childcare costs and an amount for each dependent child, so a family that looks slightly over the limit may still qualify.
What Did USDA Change on October 1, 2026?
For fiscal year 2027, which began October 1, 2026, USDA set the upfront guarantee fee at 1.00% and the annual fee at 0.35%. The fee that applies is based on the date of USDA’s conditional commitment, so loans approved now use the new rates. The upfront fee can usually be financed into the loan.
| Fee (FY2027) | Rate | Example on a $300,000 loan |
|---|---|---|
| Upfront guarantee fee | 1.00% | $3,000 (can be financed) |
| Annual fee | 0.35% | About $87.50 per month to start |
Who Qualifies for a USDA Guaranteed Loan?
- The home must be your primary residence.
- Household income must be at or below the area limit.
- You need steady income and manageable debts. Many lenders want a credit score of about 640 or higher for automated approval.
- The home must meet USDA property standards. Working farms and income-producing land generally don’t qualify.
USDA also offers a Section 502 Direct loan for lower-income buyers, applied for through the USDA Tennessee State Office (615-783-1300). Most buyers use the Guaranteed program through a lender like us.
How Does USDA Compare to Other Zero- or Low-Down Loans?
| Loan | Minimum down | Location rule | Good fit for |
|---|---|---|---|
| USDA Guaranteed | 0% | Eligible rural areas only | Moderate-income buyers outside the cities |
| VA | 0% for eligible borrowers | Anywhere | Veterans and service members |
| FHA | 3.5% | Anywhere | Buyers with lower credit scores |
| Conventional | As low as 3% for eligible buyers | Anywhere | Buyers with stronger credit |
If you’ve served, compare USDA with our VA loan guide for Hendersonville. First-time buyers should also read our first-time home buyer guide for Tennessee down payment help.
Is Now a Good Time to Buy in Sumner County?
Mortgage News Daily reported a 30-year fixed average of 7.33% on October 26, 2026. Not having to save a down payment can help you buy sooner. The trade-off is a larger loan balance. For current prices and inventory, see our Sumner County housing market fall 2026 update.
Frequently Asked Questions
Is Hendersonville TN eligible for USDA loans?
Generally no. Hendersonville is too large for USDA’s rural definition. Nearby areas such as Portland, Westmoreland, Cottontown, and Bethpage are often eligible. Always check the exact address on USDA’s map.
What is the USDA income limit for Sumner County in 2026?
For 2026, the limit is $133,550 for households of 1–4 people and $176,300 for households of 5–8, because Sumner County is in the Nashville metro area.
What are the USDA loan fees in 2026?
For loans with a conditional commitment on or after October 1, 2026, the upfront guarantee fee is 1.00% and the annual fee is 0.35%, per USDA Rural Development.
Do USDA loans require a down payment?
No. Eligible borrowers can finance up to 100% of the purchase price, and the upfront guarantee fee can usually be added to the loan.
What credit score do I need for a USDA loan?
USDA doesn’t set a single minimum, but many lenders look for about 640 or higher for automated approval. Lower scores may qualify with manual underwriting.
Can I use a USDA loan for a rental or second home?
No. USDA Guaranteed loans are only for a primary residence you plan to live in.
Find Out If Your Dream Home Qualifies
Call (615) 357-7800 or visit www.hendersonvillemtg.com. We’re available 9 a.m. to 9 p.m., seven days a week. Send us an address, and we’ll help you check USDA eligibility and compare USDA, FHA, VA, and conventional options from multiple lenders.
About CFC Mortgage in Hendersonville
This guide was written by the team at CFC Mortgage — Hendersonville, part of Coastal Funding Corporation (NMLS 103035). As a mortgage broker, we compare loan programs from many lenders for buyers across Hendersonville, Sumner County, and Middle Tennessee. Our options include conventional, FHA, VA, USDA, jumbo, and DSCR investment loans.
Sources: USDA Rural Development eligibility site; USDA Rural Development lender bulletins on 2026 income limits (July 13, 2026) and FY2027 guarantee fees (via GovDelivery and Newrez); 2026 Sumner County income limits as reported by Neighbors Bank and RuralHomeCheck; Sumner County area eligibility guidance from a local eXp Realty agent blog; U.S. Census Bureau 2020 populations; Mortgage News Daily, October 26, 2026.
Coastal Funding Corporation (CFC Mortgage — Hendersonville) | NMLS 103035 | 534 S. Navy Blvd, Pensacola, FL 32507 | (615) 357-7800 | www.hendersonvillemtg.com. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Rates, terms, and programs are subject to change without notice. Rate and market figures cited are third-party data as of the dates shown and are not quotes or offers from Coastal Funding Corporation. Primary-residence loans offered in FL, SC, and TN; DSCR loans available nationwide.