The Scenic City ended last quarter with a $315,000 median sale price, up 6 % but still trailing Knoxville and Nashville by 22 % and 35 % respectively. Entry-level inventory under $250k represents only 28 % of active listings, so speed matters—homes fetch 99.3 % of list price on average.

Neighborhoods appreciating fastest:

• Southside – 14 % YoY, average DOM 11 days
• St. Elmo – 12 % YoY, thanks to new craft breweries and the Incline restoration
• NorthShore – 10 % YoY, river-view condos pushing $380/sq ft

Rents have crept to $1.62/sq ft, making ownership cheaper than leasing in 11 of 13 city zip codes. Investors from Atlanta continue snapping up duplexes in Highland Park, so owner-occupants need pre-approval letters that prove they can close in under three weeks—NMHL’s local underwriters deliver exactly that.

First-time buyers often target East Ridge where 1,300 sq ft brick ranches trade at $225–235k and the 37412 zip qualifies for USDA 100 % financing south of Ringgold Road. Brainerd offers similar value plus the new Wilcox Tunnel trailhead, boosting weekend walk scores.

Prefer city vibe without downtown price tags? Highland Park and NorthChatt host craftsman bungalows under $260k, many with renovated kitchens and alley-access garages. A $240k purchase here breaks down to:

• $8,400 down with FHA (3.5 %)
• $174/month PMI (0.85 %)
• $1,380 P&I at 6.5 %
• $260 taxes & insurance

Total payment ≈ $1,810—$150 less than average Highland Park rent. NMHL’s first-time-buyer grants can cover the down payment, preserving your savings for the inevitable kayak or mountain bike.

Tennessee’s lack of state income tax shifts weight to property levies, yet Chattanooga remains competitive. The 2024 combined rate inside city limits is:

• City of Chattanooga: $1.23 per $100 assessed
• Hamilton County: $1.08 per $100 assessed
• Combined: $2.31 per $100 (assessed = 25 % of appraised value)

On a $300,000 home, assessed value = $75,000, producing an annual tax of $1,732. Compare that to Knoxville’s $2.46 or Memphis’s $3.19—Chattanooga saves owners $400–$700 yearly.

Key exemptions:

• Homestead – knocks off $37,500 of assessed for seniors 65+ or disabled residents
• Veterans – additional $40,000 assessed reduction for service-connected 100 % disability
• Conservation – up to 75 % assessed reduction for qualifying agricultural tracts

Because Tennessee does not reassess property when it sells, buyers keep the previous owner’s basis until the next county-wide reappraisal—usually every four years. Budgeting is predictable, and NMHL escrows the exact levy so you’re never caught short at year-end.

Chattanoogans can stack multiple layers of assistance:

Great Choice Plus (Statewide)
Up to $15,000 deferred second at 0 % for 15 years. Income cap for Hamilton County: $95,900 for a 1–2 person household. Works with FHA, VA, USDA, or 30-yr conventional.

HOME Down-Payment Loan (City)
$7,500 forgivable after five years of owner-occupancy. Must buy inside Chattanooga city limits and earn ≤ 80 % area median income (~$65k for one buyer).

HHF Down-Payment (Bank of Tennessee pool)
Matches borrower contribution dollar-for-dollar up to $10,000. Requires $500 of your own funds and a 660 FICO.

Combine these with NMHL’s FHA 3.5 % or Conventional 3 % and you can purchase a $250k condo in the Southside with:

• $7,500 city HOME grant
• $7,500 HHF match
• $5,000 seller concession toward closing

Your cash to close: under $2,000 including appraisal and inspection. NMHL processes the grant paperwork in-house so you don’t lose days coordinating with third-party agencies.

Veterans & Active Duty
With the 117th Air National Guard and a 40k-veteran population, Chattanooga sees heavy VA volume. NMHL offers:

• $0 down to $1.5 M with 580+ FICO
• Manual underwrite on 550-579 with 12 months clean credit
• Funding fee waived for 10 %+ disabled
• Spot condo approval in 10 days for riverfront buildings lacking VA ID

FHA Flex
We allow:

• 580-619 score: 3.5 % down, collections ignored under $2k
• 550-579 score: 10 % down, 12-month rental history required
• Non-occupant co-borrower OK—perfect for UTC grads moving back from Nashville

USDA Rural Stretch
Look east to Apison (37302) or north to Sale Creek (37373); both qualify for 100 % financing with 0 % PMI. Income cap for a family of four is $110,750. We can close these in 25 days using the Guaranteed Underwriting System.

Fresh-Start Non-Prime
One day out of bankruptcy or foreclosure? Our Fresh-Start program allows:

• 20 % down as low as 500 FICO
• 24-month bank statements to $2 M loan amount
• Interest-only option for cash-flow investors on Signal Mountain

Chattanooga’s steady appreciation (5.7 % CAGR since 2012) cushions risk, so borrowers rebuild equity quickly even with higher rates.

Freelance videographers, food-truck owners, and Amazon delivery partners thrive in Chattanooga’s entrepreneurial ecosystem. Traditional underwriting penalizes write-offs, but NMHL sees cash flow:

12-Month Bank-Statement
Use 70 % of gross business deposits as income. Loan amounts to $3 M, 10 % down to $1 M. Rates run about 1 % above conventional A-paper.

24-Month Profit-Only
Qualify on company profit shown on statements, ignoring salary reductions. Popular with short-term-rental hosts in St. Elmo who run heavy depreciation on cabins.

1099 Only
No tax returns, just last two years 1099s and current YTD earnings statement. Ideal for traveling nurses at Erlanger or contract engineers at VW.

Asset-Depletion
For retirees relocating from Florida, we divide liquid assets by 60 months to create qualifying income. A $1.2 M IRA equals $20k monthly income—more than enough for a riverfront unit in One NorthShore.

Chattanooga’s cost of living runs 9 % below the national average, so self-employed borrowers can often qualify for bigger homes than they expect. A typical client with $95k net deposits purchases a $400k craftsman in FortWood with 15 % down and still reserves $35k post-closing.