---
title: "Tennessee Veterans Get Priority for USDA Home Loans"
url: https://www.herenashville.com/2026/11/11/usda-tennessee-veterans-priority-section-502-home-loans/
date: 2026-11-11T07:53:33-06:00
modified: 2026-11-11T07:53:33-06:00
author: "HERE City State Desk"
categories: ["Business"]
site: "HERENashville"
attribution: "HERENashville"
---

# Tennessee Veterans Get Priority for USDA Home Loans

> NASHVILLE, Tenn. — Veterans and the surviving spouses of veterans who want to buy a home in rural Tennessee will be moved to the top of the line for a federal mortgage program for the next year, U.S. Department of Agriculture officials announced for Veterans Day. Patrick Jaynes, the Rural Development state director for Tennessee,

*Source: [HERENashville](https://www.herenashville.com/2026/11/11/usda-tennessee-veterans-priority-section-502-home-loans/) — November 11, 2026 by HERE City State Desk*

*From the HERE City State Desk*

NASHVILLE, Tenn. — Veterans and the surviving spouses of veterans who want to buy a home in rural Tennessee will be moved to the top of the line for a federal mortgage program for the next year, U.S. Department of Agriculture officials announced for Veterans Day.

Patrick Jaynes, the Rural Development state director for Tennessee, said a waiver has been approved for fiscal 2027 that puts those applicants in the priority one category for Section 502 single-family home loans, the highest level of processing priority the program offers in the state.

Priority affects only the order in which applications are handled. It does not promise approval, and applicants still have to meet every eligibility rule.

The direct version of the Section 502 program is aimed at low- and very-low-income buyers in eligible rural areas. Applicants must have adjusted income at or below the local low-income limit and show they can repay. As of Nov. 1 the interest rate is 6.25 percent, though payment assistance can bring the effective rate as low as 1 percent. Terms run up to 33 years, or 38 years for very-low-income borrowers who cannot handle the shorter term, and a down payment usually is not required.

Loan money can go toward buying, building, repairing, renovating or relocating a home, and toward preparing a site, including water and sewer service. Applications are taken year round through local Rural Development offices.

The new priority adds to two veteran housing efforts already run by the agency in Tennessee: a small-house pilot for veterans called Homes for Hometown Vets, launched in 2025, and a repair initiative known as Project 250.