On this page 8 sections
In short
- Borrowing: at Tennessee's median home value, a hypothetical line is about $100,080 (math below).
- State tax: yes. $0.115 per $100 of the maximum line, first $2,000 exempt.
- Signing: Tennessee isn't a community property state. Co-owners sign; ask the lender about a spouse who isn't on title.
How much you could borrow in Tennessee
A HELOC limit starts with your home's value, the share of it a program will lend against in total, and what you already owe. Here's the math using Tennessee's median owner-occupied home value from the U.S. Census Bureau's American Community Survey (2024).
Hypothetical math, not a quote. The 80% combined loan-to-value (CLTV) is an assumption; the maximum depends on the program, your credit and the property, and income and debts can lower the line further. Run your own numbers in the HELOC calculator.
Tennessee's indebtedness tax on a HELOC
Tennessee charges an indebtedness tax when a mortgage or deed of trust is recorded: $0.115 per $100 of debt, with the first $2,000 exempt (Tennessee Department of Revenue; Tenn. Code Ann. § 67-4-409). For a line of credit, the tax is based on the maximum amount stated in the instrument, and drawing or repaying within that limit doesn't add tax. If the limit is raised later, tax is due only on the increase, and the $2,000 exemption doesn't apply again.
Who has to sign
Tennessee is not a community property state by default (couples can elect into community property treatment under state law, per IRS Publication 555). We didn't confirm a Tennessee statute requiring a spouse who isn't on the title to sign a mortgage on the home, so who signs depends on how the home is titled and on the lender's and title company's requirements. If you and your spouse own the home together, expect both of you to sign.
Federal rules that apply in every state
- You get a three-business-day right to cancel a HELOC on your principal home. See where to find your terms.
- A variable-rate HELOC can change only with a public index outside the lender's control, and it must have a lifetime rate cap. See how HELOC rates are set.
- Your lender must give you HELOC disclosures and the CFPB's HELOC booklet when you apply.
Getting a HELOC in Tennessee
Tyler Huntington is licensed in Tennessee and works with homeowners statewide, including the Nashville, Memphis, Knoxville and Chattanooga areas. Compare the line amount, the margin, the caps, the draw and repayment periods and the total fees, including any Tennessee recording costs above. Start with what lenders check.
Sources
- Tennessee Department of Revenue, REC-1 Recordation Tax Overview
- Tennessee Department of Revenue, recordation tax rates
- Tennessee Department of Revenue, Realty Transfer and Recordation Tax manual
- IRS Publication 555, Community Property
- U.S. Census Bureau, ACS 2024 1-year, table B25077 (Tennessee)
Frequently asked questions
How much can I borrow with a HELOC in Tennessee?
It depends on your home's value, what you owe and the program's maximum combined loan-to-value. At Tennessee's median owner-occupied value of $332,600 (2024 Census estimate), an 80% CLTV and $166,000 owed, the line would be about $100,080. That's hypothetical math, not a quote.
Is there a mortgage tax on a HELOC in Tennessee?
Yes. Tennessee's indebtedness tax is $0.115 per $100 of debt, minus the first $2,000, and for a line of credit it's based on the maximum amount. A $100,000 line comes to about $113.
Does my spouse have to sign a HELOC in Tennessee?
If your spouse is on the title, yes. We didn't find a Tennessee statute requiring a spouse who isn't on the title to sign, so it depends on how the home is titled and on the lender's requirements. Ask before closing.
Is Tyler Huntington licensed in Tennessee?
Yes. Tyler Huntington (NMLS #181638) is licensed in Tennessee. You can verify any loan officer's licensing at NMLS Consumer Access.
Questions about your own situation? Contact a licensed loan officer. It's optional, and your information is not sold to lead marketplaces.