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By Mario Ismailanji |
|
Comments Off on Decoding Markets: May Inflation
Downside Surprise
Representing a pillar of the Federal Reserve’s dual mandate, inflation reports have always been something professional investors took note of. However, these releases have taken on greater importance in the post-pandemic period.
At first it was to track what was thought to be a “transitory” increase in inflation as the global economy emerged from Covid lockdowns. But that transitioned to monitoring the impact of stubborn supply problems related to goods, labor, and energy.
We’re in the midst of another transition. The concerns about pandemic-related supply chain distortions have been replaced by concerns about tariffs. Judging the impact of trade policy on the economy has been like a game of whack-a-mole for investors: Will the economy continue growing while prices rise, or are businesses and consumers going to cut back on their spending due to uncertainty?
It’s far too early for a definitive answer, but the latest consumer price data suggest no price shock quite yet. May CPI rose 0.1% m/m on both a headline and core (i.e. excluding food and energy) basis.
Core CPI Month-Over-Month
The downside surprise to core inflation was particularly notable, as it was the fourth straight below-consensus print, with this release coming in below all Bloomberg economist estimates. Usually seen as a more stable read into the underlying inflation trend than the headline number, it caught investors off-guard and pushed Treasury yields lower by 5-10 bps across most maturities.
Widespread Disinflation
Because inflation reports often contain so much data, there’s usually something in them for both upside and downside risk viewpoints to hang their hat on. That’s tougher to do in this report, as most components shifted lower with very little in the way of acceleration. Shelter prices rose 0.3%, one of its lowest increases in the last four years, while the prices of energy, cars, and airfares fell 1.0%, 0.3%, and 2.7%, respectively.
More broadly, putting every component into buckets can help visualize the breadth of inflation in its totality. Here’s what that looks like.
Distribution of CPI Components by M/M Annualized Rates
The major jump in components that were running at an above-4% inflation rate (magenta) a couple of years ago jumps out, but more importantly for investors is the recent increase in the number of components at a below-2% inflation rate (blue and purple).
The slowdown of inflation isn’t being caused by just a few categories. That supports the view that inflation is becoming less and less of a problem.
Now, Later, or Never
Although I said earlier it was too early to have a definitive answer on what impact trade upheaval has been having on the economy, that doesn’t mean we have zero clue.
Broadly speaking, prices are a function of supply and demand. Holding supply constant, more demand usually means higher prices, while less demand usually means lower prices. On the other hand, holding demand constant, more supply means lower prices, and lower supply means higher prices.
Since inflation data has been consistently surprising to the downside, that leaves us with two plausible drivers: Either supply has been better than expected, or demand has been weaker. Even after accounting for over-ordering to get ahead of possible tariffs, it’s hard to imagine that the upheaval of the last few months has improved the overall supply story. That leaves demand deterioration as the most likely driver of lower inflation prints.
This conclusion makes sense given recent consumer sentiment trends, which according to the University of Michigan, is at its lowest levels outside of 1980 and 2022.
Consumer Sentiment At Historical Lows
Inflation unexpectedly slowing while consumers feel historically bad about the economy suggests businesses are facing margin pressure. If profit margins contract, that would likely weigh on stock prices, especially given an S&P 500 that has rebounded to near all-time highs.
How any of this goes is at the whims of trade policy. If it all gets resolved in an orderly manner, that margin pressure might actually never fully materialize. But outside of a quick resolution, who knows when the margin pressure might become apparent. In that environment, a more defensive posture by investors after a very favorable period for risk assets could be a prudent one.
Want more insights from SoFi’s Investment Strategy team? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.
SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Mario Ismailanji is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.
Located in upstate New York, Syracuse University is known for its heavy emphasis on research and its schools of business, design, engineering, and communications, among others. With consistently high educational rankings, Syracuse has a lot to offer.
Total Cost of Attendance
Syracuse University tuition for the 2024-25 school year was $65,528. This is significantly higher than the national average of $41,540 for tuition at private universities.
Costs for 2024-25
Tuition & Fees
$65,528
Books & Supplies
$1,753
Room & Board
$19,188
Other Expenses
$2,024
Total Cost of Attendance
$88,493
Financial Aid
Generally, financial aid is monetary assistance awarded to students based on personal need or merit. Students who qualify for financial aid can use it to pay for college costs like tuition, books, and living expenses.
Syracuse University is “need blind” during the admissions process, which means a student’s ability to pay for their education will not be a factor when they apply.
For the 2022-23 school year, 84% of first-year Syracuse students used some sort of financial aid. The financial assistance consisted of student loans, grants, scholarships, or a combination.
The federal government is the largest provider of student financial aid. However, aid can also be given by state governments, colleges and universities, private companies, and nonprofits. The different types include:
• Scholarships: These can be awarded by schools and other organizations based on students’ academic excellence, athletic achievement, community involvement, job experience, field of study, or financial need.
• Grants: Generally based on financial need, these can come from federal, state, private, or nonprofit organizations.
• Work-study: This federal program provides qualifying students with part-time employment to earn money for expenses while in school.
• Federal student loans: This is money borrowed directly from the U.S. Department of Education. It comes with fixed interest rates that are typically lower than private loans.
Colleges, universities, and state agencies use the Free Application for Federal Student Aid (FAFSA) to determine financial aid eligibility. The FAFSA can be completed online, but note that state, federal, and school deadlines may differ.
You can find other financial aid opportunities on databases such as:
For the 2022-23 school year, 7% of first-year Syracuse students took out private student loans to cover educational costs, with an average balance of $33,651. By comparison, 29% of first-time students received federal loans.
Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or -affiliated organizations. While federal student loans have interest rates that are regulated by Congress, private lenders follow a different set of regulations so their qualifications and interest rates can vary widely.
What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed. Private lenders may (but don’t always) require you to make payments on your loans while you are still in school, compared to federal student loans, which you don’t have to start paying back until after you graduate, leave school, or change your enrollment status to less than half-time.
Private loans don’t have a specific application window and can be applied for on an as-needed basis. However, if you think you may need to take out a private loan, it’s a good idea to submit your FAFSA first to see what federal aid you may qualify for, since it generally has better rates and terms.
If you’ve missed the FAFSA deadline or you’re struggling to pay for school during the year, private loans can potentially help you make your tuition payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.
At Syracuse University, the price for a beginning undergraduate student in 2024-25 was $88,493. If this remains true for all four years, the price would be $353,972. This includes tuition, fees, books, room and board, and other expenses.
The cost at Syracuse is substantially higher than the average four-year cost at U.S. private institutions, which would be $241,680.
The combined cost of Syracuse University tuition, fees, books, and supplies in 2024-25 was $67,281.
Graduate Tuition and Fees
Costs for 2024-25
Tuition
$46,680
Fees
$1,452
Total Cost of Attendance
$48,132
Syracuse tuition for graduate students in 2024-25 was $46,680, plus $1,452 in fees, for a combined cost of $48,132. This is lower than the national average for one year of graduate school at a private, nonprofit university, which comes to $51,770.
There are many options for graduate loans that can help with these costs.
Cost per Credit Hour
For part-time students at Syracuse University, the cost per credit hour is $2,898.
Campus Housing Expenses
Costs for 2024-25
On Campus
Off Campus
Room & Board
$19,188
$1,472/mo*
Other Expenses
$2,024
$2,024
*Average rate based on available one-bedroom apartments on Syracuse University’s off-campus housing website in 2025.
At Syracuse University, students are required to live on campus for their first two years of enrollment. They’ll live in one of 10 residence halls that feature open- and split-double rooms, as well as single rooms and open-triple rooms
For upperclassmen who choose to live off-campus, there are many duplexes, apartments, and houses located within walking distance.
Syracuse University Acceptance Rate
Fall 2023
Number of Applications
Number Accepted
Percentage Accepted
42,089
17,677
42%
The Syracuse University acceptance rate for undergraduates is 42%.
Admission Requirements
Here’s what you’ll need to apply to Syracuse.
Required:
• High school transcript
• Senior year grade report
• Secondary school counselor evaluation
• One academic recommendation
Recommended:
• SAT or ACT scores
The deadline for Early Decision applications is November 15, with admission notifications starting in late December. The deadline for Early Decision II applications is January 5, with admission notifications starting in mid-January. The application deadline for Regular Decision is January 5, with admission notifications by late March.
SAT and ACT Scores
Syracuse University currently does not require standardized test scores. But it still can be helpful to see the scores of other students. Here are the standardized test scores at the 25th and 75th percentile for first-time students who enrolled in 2023.
Subject
25th Percentile
75th Percentile
SAT Evidence-Based Reading/Writing
630
710
SAT Math
630
720
ACT Composite
28
32
ACT English
28
34
ACT Math
26
30
Popular Majors at Syracuse University
With more than 200 majors and 100 minors in 13 different schools, you’ll have a hard time deciding what to study at Syracuse University. Here are the most popular majors.
1. Psychology
Syracuse offers both a Bachelor of Arts and a Bachelor of Science degree in Psychology. Courses include Using Robots to Understand the Mind, Psychology of Childhood, Decision Making, and Social Psychology, to name a few.
Undergraduate degrees in 2023-24: 233
2. Sport Management
In this program, students learn about sport business and finance, athletic event planning, facility management, and sports organization management.
Undergraduate degrees in 2023-24: 165
3. Information Management and Technology
This program combines business and technology to prepare students for careers in cloud computing, cybersecurity, web design and development, and project management.
Undergraduate degrees in 2023-24: 147
4. Architecture
Those pursuing an architecture degree take such classes as Introduction to Building Systems and Architectural History. However, the primary focus of the program is on studio experience, where students get one-on-one attention from faculty to develop their work.
Undergraduate degrees in 2023-24: 145
5. Finance
After taking courses like International Financial Management, New and Emerging Markets, Investments, and Working Capital Management, students go on to be financial analysts, investment bankers, portfolio managers, or sales and trading analysts.
Undergraduate degrees in 2023-24: 123
6. Communication and Rhetorical Studies
In this program, students sharpen their communication skills in courses like Concepts and Perspectives in Rhetorical Studies, Public Advocacy, Foundations of Inquiry in Human Communication, and Critical Research and Writing. They also have the opportunity to study abroad.
Undergraduate degrees in 2023-24: 111
7. Political Science
Political science students will take courses like Comparative Government & Politics, International Relations, Political Theory, Sexuality & the Law, and Politics in the Cyber-Age. After graduating, many work as legislators, diplomats, judges, news correspondents, or political scientists.
Undergraduate degrees in 2023-24: 110
8. Economics
Not only do economics majors learn everything from International Economics to Money and Banking, but they also have the chance to gain real-world experience as interns in local and global companies.
Undergraduate degrees in 2023-24: 109
9. Marketing Management
In addition to taking courses like Marketing Research, Consumer Behavior, Global Marketing Strategy, Brand Management, and Sales Management in B2B Markets, marketing majors also get the chance to get real-world experience and study abroad.
Undergraduate degrees in 2023-24: 107
10. Television, Radio, and Film
Students can take courses like Multimedia Storytelling, Topics in Entertainment Business, and Script Development that can launch them into careers in cinematography, music production, sound design, talent representation, and more. Semester-long coursework in Los Angeles and New York City enables students to get credit for hands-on experience.
Undergraduate degrees in 2023-24: 100
Graduation Rate
These are the graduation rates at Syracuse University:
• 4 years: 71%
• 6 years: 81%
• 8 years: 83%
Post-Graduation Median Earnings
After completing an undergraduate degree at Syracuse University, the median alumni salary is $79,164 per year. This is 16% higher than the national average salary of $68,516 for undergraduates.
Bottom Line
With so many fields of study, as well as a strong emphasis on research, Syracuse University offers students a stellar education. And while Syracuse tuition is expensive, the university is need blind, so you don’t have to worry about your ability to pay for college when you apply. Plus, there are plenty of Syracuse financial aid options to explore that could help you cover the cost.
SoFi private student loans offer competitive interest rates for qualifying borrowers, flexible repayment plans, and no origination fees.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
SoFi Bank, N.A. and its lending products are not endorsed by or directly affiliated with any college or university unless otherwise disclosed.
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University of California, Davis (UC Davis) is a public research university and a premier campus located in Davis, California. Known for its top-ranked veterinary medicine program and its expansive, bike-friendly campus, UC Davis offers more than 100 undergraduate majors alongside graduate and professional degrees.
Keep reading to learn detailed information on UC Davis tuition and fees, financial aid opportunities, acceptance rates, admission requirements, and more.
Total Cost of Attendance
UC Davis has several noteworthy programs, including veterinary medicine and agriculture. In 2024-25, UC Davis tuition and fees was $16,774 for in-state students and $50,974 for out-of-state students. The national averages for public four-year schools are $11,260 for in-state students and $29,150 for out-of-state students.
Costs for 2024-2025
Student Type
In-State
Out-of-State
Tuition & Fees
$16,774
$50,974
Books & Supplies
$1,386
$1,386
Food & Housing
$19,426
$19,426
Other Expenses
$6,616
$6,616
Total Cost of Attendance
$44,202
$78,402
Financial Aid
At UC Davis, 58% of students use financial aid to help with UC Davis tuition. They may take out student loans or apply for grants and scholarships.
Generally, financial aid is monetary assistance awarded to students based on personal need and merit. Students who qualify for financial aid can use it to pay for college costs like tuition, books, and living expenses.
The federal government is the largest provider of student financial aid. However, aid can also be given by state governments, colleges and universities, private companies, and nonprofits. The different types include:
• Scholarships:Scholarships can be awarded by schools and other organizations based on students’ academic excellence, athletic achievement, community involvement, job experience, field of study, or financial need.
• Grants: Grants are generally based on financial need. These can come from federal, state, private, or nonprofit organizations.
• Work-study:Federal Work-Study provides qualifying students with part-time employment to earn money for expenses while in school.
• Federal student loans:Federal student loans are money borrowed directly from the U.S. Department of Education. They come with fixed interest rates that are typically lower than private loans.
Colleges, universities, and state agencies use the Free Application for Federal Student Aid (FAFSA®) to determine financial aid eligibility. The FAFSA can be completed online, but note that state, federal, and school deadlines may differ.
You can find other financial aid opportunities on databases such as:
When it comes to student loans, 22% of students at UC Davis take out federal loans, while 9% take out private loans. The average private student loan is $5,153.
Private loans are funded by private organizations such as banks, online lenders, credit unions, some schools, and state-based or -affiliated organizations. While federal student loans have interest rates that are regulated by Congress, private lenders follow a different set of regulations, so their qualifications and interest rates can vary widely.
What’s more, private loans have variable or fixed interest rates that may be higher than federal loan interest rates, which are always fixed. Private lenders may (but don’t always) require you to make payments on your loans while you are still in school, compared to federal student loans, which you don’t have to start paying back until after you graduate, leave school, or change your enrollment status to less than half-time.
Private loans don’t have a specific application window and can be applied for on an as-needed basis. However, if you think you may need to take out a private loan, it’s a good idea to submit your FAFSA first to see what federal aid you may qualify for, as it generally may have better rates and terms.
If you’ve missed the FAFSA deadline or you’re struggling to pay for school during the year, private loans can potentially help you make your payments. Just keep in mind that you will need enough lead time for your loan to process and for your lender to send money to your school.
To attend UC Davis for four years, students from California will pay $176,808, while students from other states will pay $313,608. The average cost for four years at a public university in the U.S. is $115,360 for in-state students, and $186,920 for out-of-state.
UC Davis tuition and fees, books and supplies, room and board, and miscellaneous expenses for the 2024-25 school year totaled $44,202 for in-state students and $78,402 for out-of-state students.
Graduate Tuition and Fees
Costs for 2024-2025
Student Type
In-State
Out-of-State
Tuition & Fees
$15,141
$30,243
University of California, Davis offers many well-respected graduate programs. UC Davis tuition for grad school is $12,762 (in-state) or $27,864 (out-of-state), plus fees totaling $2,379 for each. This is more than the average cost for one year of graduate school at a four-year public institution in the U.S., which is $10,320 per year. There are graduate loans available to help with these costs.
Cost per Credit Hour
UC Davis does not offer the ability to pay per credit hour, even if students attend part-time. Part-time students pay half the full-time tuition.
Campus Housing Expenses
Costs for 2024-25
Student Type
On-Campus
Off-Campus
Food & Housing
$19,426
$14,745
Other Expenses
$6,616
$7,254
Freshmen are not required to live on campus, though more than 90% choose to do so. There are 30 residence halls spread over three areas of campus for students to live in.
There are many options near campus for students who choose to live in apartments or houses, either on their own or with roommates.
University of California – Davis Acceptance Rate
Fall 2023
Number of applications
94,637
Number accepted
39,748
Percentage Accepted
42%
The UC Davis acceptance rate is 42%, which means that nearly half of the students who apply are accepted.
Admission Requirements
Here’s what’s required when applying at UC Davis:
Required:
• High school transcript and GPA
• College preparatory program
• Personal statement or essay
The deadline for applications to UC Davis is December 2. You can apply to UC Davis here .
SAT and ACT Scores
No SAT or ACT scores are considered with applications through the fall of 2024, and scores won’t be considered for scholarships during this period.
Popular Majors at the University of California Davis
UC Davis offers over 100 majors and programs. Here are the most popular majors at UC Davis.
1. Psychology
One of the most popular majors is psychology, which provides a base in research methods and statistics courses, as well as courses in mathematics, chemistry, biology, and psychology. Students have the opportunity to conduct research, help faculty with projects, or intern in the field.
Undergraduate degrees in 2023-24: 866
2. Management Sciences
In this program, students learn how to apply economic theory to business situations, develop problem-solving skills, and improve communication skills. Students can specialize in one of these areas: business economics, international business economics, environmental and resource economics, or agribusiness economics.
Undergraduate degrees in 2023-24: 498
3. Neurobiology and Anatomy
Building on a foundation in biological sciences, chemistry, mathematics, and physics, students can choose courses based on their interests, including animal behavior, physiology of particular organ systems or groups of animals, developmental neurobiology, and endocrinology.
Undergraduate degrees in 2023-24: 394
4. Economics & Quantitative Economics
Economics majors at UC Davis learn about microeconomics and macroeconomics, statistics, and mathematics, as well as economic theory, American or European economic history, and data analysis. Students can also choose courses such as games theory, financial institutions, or international economic development.
Undergraduate degrees in 2023-24: 392
5. Computer Science
Computer science students will learn about programming, networking, and database systems, and can customize their studies with courses on computer graphics, artificial intelligence, data visualization, or advanced mathematics.
Undergraduate degrees in 2023-24: 390
6. Human Development and Family Studies
This program explores the social, emotional, and cognitive development of humans, and provides hands-on learning experiences. Students will learn about nutrition and childhood and adult development. They will also get to participate in a practicum course and may opt for an internship.
Undergraduate degrees in 2023-24: 335
7. Biological Sciences
Biology students are given a solid foundation in biology, chemistry, mathematics, and physics, and can then take courses in molecular biology and genetics, animal behavior, plant growth and development, bioinformatics, marine biology, forensics, and microbiology.
Undergraduate degrees in 2023-24: 334
8. Animal Science
This program provides ample opportunity for hands-on learning with different types of animals. Students will also learn about animal behavior, biochemistry, genetics, nutrition, physiology, animal health, and productivity.
Undergraduate degrees in 2023-24: 294
9. Political Science
Political science students at UC Davis will learn about political concepts, institutions, behavior, and processes. Courses are available on American politics, comparative politics, international relations, public law, and political theory.
Undergraduate degrees in 2023-24: 240
10. Communication
Communications students learn about communications processes at different levels and delve into digital media and cross-cultural communications. They will study communication theory, specific communication processes, and the role and effects of mass media. They will also have the chance to intern in their field.
Undergraduate degrees in 2023-24: 239
Graduation Rate
The graduation rate for students who started at UC Davis in 2017 is 85%.
Post-Graduation Median Earnings
After graduating, students from UC Davis earn, on average, $80,838 per year. This is higher than the national average of $68,680 for the class of 2025.
Bottom Line
University of California, Davis is well-known for many of its programs, and the tuition is reasonable for such a respected institution. If you need help paying for UC Davis tuition, you can apply for scholarships, grants, federal student loans, and private student loans.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.
SoFi Private Student Loans Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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It’s a long journey through the 440-mile length of Tennessee. That’s why the Volunteer State is divided into three Grand Divisions — East Tennessee, Middle Tennessee, and West Tennessee — each with a unique personality and real estate market.
East Tennessee is square in the Appalachian Mountains and is home to Knoxville and Chattanooga, the state’s third- and fourth-largest cities. The rolling hills of the middle area are anchored by Nashville, Tennessee’s largest city and the capital. The western division slides into the flatlands of the Mississippi River and is home to the inimitable Memphis.
For houses in Tennessee, the median list price is now $434,137, according to Redfin. That’s a large number but still more affordable than in many other states. Plus, Tennessee offers a robust first-time homeowner assistance program for mortgages and down payments.
Who Is Considered a First-Time Homebuyer in Tennessee?
Like many states, Tennessee follows the federal government’s definition of first-time buyer as someone who has not owned a home in the past three years. However, the Tennessee Housing Development Agency does not require active-duty military members and veterans to be first-time borrowers to obtain a home mortgage loan through its Homeownership for the Brave program. In addition, in several designated counties and targeted areas of the state, Tennessee Housing program borrowers may be repeat homeowners.
First-time homebuyers can find help through the Tennessee Housing Development Agency’s Home Loan Program. Down payment assistance is also part of the agency’s menu. Here’s a closer look.
This program offers conventional, FHA, VA, and USDA 30-year fixed-rate loans to first-time homebuyers. Interest rates vary based on the market and the mortgage lender. Down payment assistance is available for FHA or USDA loans.
To qualify, borrowers need to make a 3% down payment for insured conventional loans and a 3.5% down payment for FHA and USDA loans. Income and purchase price limits apply, depending on the county and household size. Buyers who are not first-timers are also able to participate in this program if they are qualified military buyers or are buying in certain targeted areas.
The housing agency requires a minimum FICO® credit score of 640 for everyone on the loan application and completion of a home education course.
2. Homeownership for Heroes
Available to active military service members including the National Guard, as well as veterans, law enforcement officers, EMTs, paramedics, and firefighters this program provides for a 30-year loan at a reduced interest rate.
Applicants must have a minimum credit score of 640, meet the same income and purchase price limits as in the Great Choice program, and complete a homebuyer education course if using down payment assistance. They may, though, borrow up to 100% of a home’s purchase price with a loan backed by the Department of Veterans Affairs.
3. Great Choice Plus: Help With a Down Payment or Closing Costs
This is Tennessee Housing’s down payment assistance program, to be used with the Great Choice mortgages. There are two options. The deferred option offers a forgivable second mortgage for $6,000 to be used for down payment and/or closing costs. The loan has a 0% interest rate, and payments are deferred until the end of the 30-year term, at which time the loan is forgiven. If you refinance or sell, the loan is due in full.
The amortizing option provides 5% of the sales price (up to a maximum of $15,000) to be used for down payment and/or closing costs. This second mortgage is repaid in monthly payments over 30 years at an interest rate that is the same as your first mortgage rate.
Borrower requirements are the same as they are for the Great Choice Program.
4. Local First-Time Homebuyer Programs
Local housing initiatives may offer help with down payments, closing costs, and other assistance for first-time buyers in certain areas. The City of Clarksville, for example, has a program for first-time homebuyers.
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How to Apply to Tennessee Programs for First-Time Homebuyers
The Tennessee Housing Development Agency website contains clear descriptions and requirements for its mortgage and down payment assistance programs available to first-time homebuyers in the state. The agency does not lend directly, but you can find a list of approved lenders so you can compare interest rates, fees, and other costs. This is particularly important for newbie homebuyers, who may be unfamiliar with the process.
First-time buyers can also find links to approved homebuyer education courses , which are required for participation in most of the THDA’s programs.
In addition, the THDA website provides a list of approved credit counselors who may be able to help potential borrowers who fall below the required credit score of 640.
Federal Programs for First-Time Homebuyers
Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.
The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.
Federal Housing Administration (FHA) Loans
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.
In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA loans allow a DTI ratio of up to 57% in some cases, vs. a typical 45% maximum for a conventional loan.
Gift money for the down payment is allowed from certain donors and will be documented in a gift letter for the mortgage.
FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137. You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.
Freddie Mac Home Possible Mortgages
Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.
The Home Possible mortgage is for buyers who have a credit score of at least 660.
Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.
Fannie Mae HomeReady Mortgages
Fannie Mae HomeReady® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.
For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .
Fannie Mae Standard 97 LTV Loan
The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.
Department of Veterans Affairs (VA) Loans
Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.
Another positive aspect of VA loans is that they do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.
Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.
Native American Veteran Direct Loans (NADLs)
Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. For further information, contact [email protected].
US Department of Agriculture (USDA) Loans
No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.
The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .
HUD Good Neighbor Next Door Program
This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. For more information, visit the HUD program page.
First-Time Homebuyer Stats for 2025
• Median home list price in Tennessee: $434,137
• 3% down payment: $13,024
• 20% down payment: $86,827
• Percentage of buyers nationwide who are first-time buyers: 24%
• Median age of first-time homebuyers: 38
• Average credit score (vs. average U.S. score of 715): 706
Financing Tips for First-Time Homebuyers
In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:
• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. The IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.
• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.
• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, in a 12-month period without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have longer to repay.
• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.
• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.
• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home-buying education courses.
• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.
The Takeaway
Tennessee has a streamlined state program for first-time homebuyers who meet income limits and credit qualifications. Other first-time buyers may opt to look into federally insured or conventional mortgages on their own to unlock the door to homeownership.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Yes! Good information is key to a successful home-buying experience for newcomers, who can easily be overwhelmed by the process of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed, they are required for some government-sponsored loan programs.
Do first-time homebuyers with bad credit qualify for homeownership assistance?
Often they do. Many government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications.
Is there a first-time homebuyer tax credit in Tennessee?
Not at present, though many homeowners can still deduct home mortgage interest on their federal taxes.
Is there a first-time veteran homebuyer assistance program in Tennessee?
Yes. Tennessee has a particularly robust program for active military service members and veterans called Homeownership for Heroes. It offers an interest rate discount on a mortgage that can be paired with down payment assistance, if needed. In addition, Tennessee veterans may find options in the federal VA loan programs listed above.
What credit score do I need for first-time homebuyer assistance in Tennessee?
Programs administered by the Tennessee Housing Development Agency require a credit score of 640 or above. To help achieve this goal, the agency provides a list of credit counselors. In addition, there are other private, state, and federal loan programs that borrowers with lower scores may be able to access.
What is the average age of first-time homebuyers in Tennessee?
The Tennessee age is hard to pin down, but the average age nationally is 38.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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