Best HELOC Lenders in Nashville, TN (2026)

Nashville's transformation from Music City to one of America's premier growth metros has been remarkable — and profitable for homeowners. The median [home value](/blog/appraisal-process-explained) in the Nashville metro has risen to approximately $430,000, representing substantial equity gains for anyone who bought in the early-to-mid 2010s. Even after modest price corrections in 2023, Nashville homeowners carry meaningful equity cushions.

Tennessee's business-friendly tax environment (no state income tax) and strong in-migration continue to support home values. For homeowners looking to renovate, fund a rental property, or access a low-cost credit line, a Nashville HELOC in 2026 is a compelling option. Here's who to call.

HELOC Rates in Nashville (February 2026)

Nashville HELOC rates are competitive with the national average, tracking the prime rate (8.50% as of February 2026):

Lender Type	APR Range	Max CLTV
Credit unions	7.25% – 8.50%	Up to 90%
Regional banks	7.50% – 9.00%	Up to 85%
National banks	7.75% – 9.25%	Up to 85%
Online lenders	7.25% – 10.99%	Up to 95%

Tennessee has no special home equity lending restrictions beyond federal requirements. The 3-day right of rescission applies; no additional waiting periods.

Best HELOC Lenders in Nashville

1. ORNL Federal Credit Union ⭐ Best Overall

ORNL FCU (Oak Ridge National Laboratory Federal Credit Union) has expanded well beyond its original membership base and now serves a broad swath of Middle Tennessee. It consistently offers some of the most competitive HELOC rates in the Nashville area.

Rates: As low as 7.25% APR for members with 740+ credit (prime minus 1.25%)
Draw period: 10 years
Repayment period: 15 years
Max CLTV: 90%
Closing costs: Typically minimal (under $500)
No annual fee
Best for: Nashville-area homeowners who qualify for ORNL membership

2. Tennessee Valley Federal Credit Union (TVFCU) ⭐ Best Rates

TVFCU is one of Tennessee's most competitive credit unions for home equity products, with member-focused pricing that regularly undercuts regional banks.

Rates: Prime minus 0.75% to prime minus 1.00% for qualifying members
Draw period: 10 years
Max CLTV: 85%
Low closing costs
Best for: Rate-focused Nashville borrowers

3. Avenue Bank / Pinnacle Financial Partners ⭐ Best Regional Bank

Pinnacle Financial Partners is Nashville's flagship regional bank — founded in Nashville, publicly traded, and deeply embedded in the Middle Tennessee business community.

Rates: 7.75% – 8.75% APR
Draw period: 10 years
Relationship banking approach: Underwriters work directly with borrowers
Best for: Nashville professionals and small business owners who want relationship banking with local decision-making

4. Home Federal Savings Bank ⭐ Best Community Bank

Home Federal is a Nashville-area community bank with decades of experience in local real estate lending. Its size allows for more flexible underwriting than large national banks.

Rates: 7.75% – 9.00% APR
Manual underwriting available
Best for: Borrowers with non-standard income — Nashville's large entertainment and gig economy creates many self-employed homeowners

5. Regions Bank ⭐ Best Mid-Size Bank

Regions is one of the largest banks in the Southeast and has significant Nashville presence. Its HELOC product offers a balance of competitive rates and branch access.

Rates: 7.99% – 9.25% APR
Draw period: 10 years
Max CLTV: 85%
Introductory rate available
Best for: Existing Regions customers who want convenience and a mid-size bank relationship

6. SunTrust (now Truist) ⭐ Best for Existing Customers

Truist (merger of SunTrust and BB&T) maintains strong Nashville presence from its SunTrust days. Existing customers often receive relationship discounts.

Rates: 7.99% – 9.00% APR
Relationship discounts available
Draw period: 10 years
Best for: Existing Truist banking or mortgage customers

7. Figure ⭐ Best Online Lender

For Nashville homeowners who want speed — funding a renovation before a contractor moves on, or closing quickly on an investment deal — Figure's 5-business-day closing stands out.

Rates: 7.25% – 10.99% APR
Max CLTV: 95%
Origination fee: 0% – 4.99%
Non-revolving draw structure (understand this before applying)
Best for: Tech-comfortable borrowers who prioritize speed

8. Third Federal ⭐ Best Fixed-Rate Option

Third Federal offers a fixed-rate HELOC with no closing costs and no annual fee — a clean product for Nashville borrowers who want rate certainty.

Rate: Fixed, approximately 7.49% APR
No closing costs
No annual fee
Available nationally including Tennessee
Best for: Rate-averse borrowers who want predictability over potential variable-rate savings

Nashville Market Dynamics

The In-Migration Premium

Nashville continues to attract residents from coastal cities — a trend that props up home values even as overall transaction volume has slowed. East Nashville, The Gulch, 12 South, and Green Hills command significant premiums. Suburban markets like Franklin, Brentwood, and Murfreesboro have also appreciated strongly.

This sustained demand means Nashville appraisals are generally reliable and lenders feel confident about collateral values.

Tennessee's Tax-Free Advantage

Tennessee levies no state income tax on wages (a small Hall Tax on dividends and interest was phased out). This means Nashville homeowners have more after-tax income to service HELOC payments — a meaningful qualification advantage compared to high-tax states.

Tennessee also has relatively low property taxes. Lower property tax expenses improve DTI calculations, making it easier for Nashville borrowers to qualify.

Nashville's Entertainment Economy

Nashville's music, entertainment, and hospitality industries create a large pool of self-employed workers, 1099 contractors, and gig workers — many of whom own homes. Standard [HELOC underwriting](/blog/heloc-application-mistakes) requires two years of tax returns, but self-employed Nashvillians sometimes write off so many expenses that their documented income appears low.

Solution: Work with a local lender (Pinnacle, Home Federal, or community banks) with manual underwriting capability. Some lenders offer bank statement HELOC programs for this demographic.

Short-Term Rental HELOCs

Nashville's thriving short-term rental market (driven by bachelorette parties, music fans, and convention visitors) makes STR income a common feature of homeowner finances. If you use your property for short-term rentals, understand how your lender will treat this income — and whether it affects your property's classification for HELOC purposes.

How Much Can Nashville Homeowners Borrow?

Example calculation:

Home value: $430,000
Current mortgage balance: $240,000
Max CLTV (90%): $387,000
Available HELOC credit: $147,000

For a home in Brentwood or Franklin:

Home value: $650,000
Current mortgage: $350,000
Max CLTV (90%): $585,000
Available HELOC credit: $235,000

HELOC vs. [Cash-Out Refinance](/blog/cash-out-refinance-guide) in Nashville

Nashville borrowers with mortgages from 2019–2022 at 3%–5% should almost certainly preserve those rates and use a HELOC for equity access. Replacing a 3.5% first mortgage with a 7.0% cash-out refi for a $100,000 need makes little financial sense.

See: HELOC vs. Cash-Out Refinance 2026

Top Uses for HELOCs in Nashville

Home renovation: Nashville's hot resale market rewards high-quality renovations, especially kitchens, primary baths, and outdoor living spaces
Rental property down payments: Nashville's rental demand is strong — see DSCR Loans in Nashville for investment financing
ADU construction: Additional dwelling units command high rents in Nashville's tight rental market
Debt consolidation: Converting credit card or personal loan balances to 7%–8% HELOC rate saves significant interest
Business startup capital: Nashville's entrepreneurial culture means many homeowners fund businesses with home equity
Vacation/lake property: Cumberland Lake and surrounding Tennessee lake properties are popular HELOC-funded second home targets

Calculating Your Nashville HELOC Limit

Nashville home values vary dramatically by submarket. Here's how the math works for common scenarios:

Formula: (Home value × max CLTV%) − existing mortgage balance = available HELOC credit

Home Value	Mortgage	Max CLTV	Available Credit
$430,000	$250,000	90%	$137,000
$430,000	$350,000	90%	$37,000
$650,000	$350,000	90%	$235,000
$550,000	$300,000	85%	$167,500

If your neighborhood has appreciated significantly (East Nashville, 12 South, The Nations), your current appraisal may be well above what automated estimates show. Request a full appraisal if you believe your home has been undervalued by AVMs.

Nashville HELOC Fees Comparison

Understanding the fee structure is as important as the interest rate. Here's what Nashville borrowers should compare:

Fee	Credit Unions	Regional Banks	National Banks	Online
Origination/closing	$0–$500	$500–$1,500	$0–$1,500	$0–4.99% of loan
Annual fee	$0	$0–$75	$50–$100	$0
[Prepayment penalty](/blog/dscr-loan-prepayment-penalty)	Rarely	Sometimes	Sometimes	Varies
Min. initial draw	Varies	$10,000+	$25,000+	Full draw

For most Nashville borrowers who plan to use the HELOC over several years, a no-fee credit union product with a slightly higher rate will often be cheaper in total cost than a low-rate bank product with significant fees.

How to Qualify for the Best Nashville HELOC Rate

Check and strengthen your credit score. Pull your free report at AnnualCreditReport.com. A 740+ score unlocks the best ORNL and Pinnacle rates.
Calculate your CLTV. Add your desired HELOC to your current mortgage balance, divide by your home's estimated value. Under 80% CLTV typically gets the lowest margin.
Document your income. W-2 employees need recent pay stubs and 1–2 years of returns. Self-employed borrowers need 2 years of complete business and personal returns.
Apply to at least one credit union. ORNL and TVFCU consistently beat banks. You can join simply by living in the area.
Compare the APR, not just the rate. The APR includes fees and gives a true apples-to-apples comparison.

Frequently Asked Questions

Does Tennessee have any special HELOC laws? No. Tennessee follows federal guidelines without additional state-level restrictions, making it one of the simpler states for HELOC lending.

Can I get a HELOC on my [Nashville investment property](/blog/dscr-loans-nashville)? Yes, though rates will be higher (typically 1%–2% above primary residence rates) and max CLTV will be lower (typically 70%–75%).

How long does HELOC approval take in Nashville? Credit unions and community banks typically take 3–5 weeks. Online lenders can close in under 2 weeks.

Is Nashville's market stable enough to support a HELOC? Yes. Nashville's demographic tailwinds and economic diversification make it one of the more stable Sun Belt markets for home equity borrowing.

HELOC Rates in Nashville, TN (2026)
Tennessee HELOC Guide
DSCR Loans in Nashville
HELOC vs. Cash-Out Refinance 2026
[[[Best HELOC Rates](/blog/heloc-rate-negotiation-guide) 2026](/blog/best-heloc-rates-2026)](/blog/best-heloc-rates-2026)
[[HELOC for Investment Property](/blog/dscr-vs-heloc-for-investment-property)](/blog/heloc-for-investment-property)
HELOC Tax Deduction Guide

Best HELOC Lenders in Nashville, TN (2026): Rates, Fees & Local Picks

Key Takeaways