Buying near Fort Campbell with a VA loan and Homeownership for Heroes

Fort Campbell straddles the Kentucky-Tennessee line, and nearly two-thirds of the post's acreage is in Tennessee. Clarksville is the largest city next to it, and Military OneSource says about 66% of assigned soldiers and families live off post, many of them in Montgomery and Stewart counties. If that's you, let's talk about how to buy smart on this side of the line.

Why the Tennessee side has a state program for you

THDA's Homeownership for Heroes is open to active-duty military, National Guard, veterans and eligible spouses of veterans. You don't need a particular job title the way teachers and first responders do. Your service is the qualifier.

What you get:

• A 30-year fixed THDA loan priced 0.5% below the standard Great Choice rate on the day you lock. On THDA's Nov. 6, 2026 rate sheet, that was 6.125% versus 6.625%.
• An optional Heroes Plus second loan: a 5% loan up to $15,000, a $6,000 or $10,000 forgivable loan, or up to $25,000 on new construction.
• A statewide waiver of the three-year first-time buyer rule for qualified veterans and military. If you owned a house at your last duty station, you're not shut out.

Documents THDA's lender guide lists: a military LES for current members, a DD-214 for veterans, and in some cases THDA's Veteran Exemption Application Declaration.

VA loan basics, as they apply here

Homeownership for Heroes can be an FHA, VA or USDA loan. For most service members, VA is the natural fit.

• No down payment and no monthly mortgage insurance.
• A funding fee on purchases: 2.15% on first use with less than 5% down, 1.5% with 5% or more, and 1.25% with 10% or more. After first use, it's 3.3% with under 5% down.
• Fee exemptions for veterans receiving or eligible for service-connected disability compensation, surviving spouses receiving DIC, service members with a pre-discharge rating and active-duty Purple Heart recipients.
• The fee can be financed, and seller concessions are capped at 4% of reasonable value.

Example only: a $300,000 Clarksville home on a first-use VA loan with nothing down carries a $6,450 funding fee. If you finance it, the loan is $306,450, and your cash to close is mostly closing costs and prepaids. A $6,000 or $10,000 forgivable Heroes Plus loan can go a long way on those. Your lender confirms how much of your option can go toward costs.

Montgomery vs. Stewart County

The price limit is $500,000 in both. Because the veteran waiver already covers you, the targeted status matters most for a non-military spouse or partner who might be on the loan. Both spouses have to meet the first-time rule unless a waiver applies, so ask your lender how the veteran waiver covers a married couple on your file.

What property taxes look like in Clarksville

Tennessee taxes homes on 25% of the appraised value. Example only, using 2025 rates from the Comptroller's Tax Aggregate Report on a home appraised at $300,000:

• Inside Clarksville city limits, at a combined $3.02 per $100 assessed: about $2,265 a year.
• In unincorporated Montgomery County, at $2.10: about $1,575 a year.

Disabled veterans should also know about the state's property tax relief. For tax year 2026, relief for qualifying disabled veteran homeowners is calculated on up to $175,000 of market value. You apply through the county trustee after you get your bill. The property tax guide has the details.

PCS timing and the 60-day move-in rule

THDA requires you to move in within 60 days of closing and live in the home as your principal residence for the life of the loan. That's the part to plan around:

• Arriving on PCS orders: line up your closing so you can move in within 60 days.
• Expecting orders soon: think hard before buying. THDA doesn't allow investment homes, so turning the house into a rental later raises questions you'd want answered by a lender first.
• Deployments: ask your lender how THDA treats occupancy for a service member who deploys after moving in.

Also remember the forgivable Heroes Plus loans are forgiven after 10 years, and they come due if you sell or refinance first. On a three-year tour, the 5% loan might be the cleaner choice. Our Heroes Plus guide compares them.

Tennessee side or Kentucky side?

THDA is Tennessee's housing agency, so its loans and Heroes Plus help are for homes in Tennessee. If you're comparing a house in Clarksville with one in Oak Grove or Hopkinsville, the Kentucky home won't qualify for THDA, no matter where you work on post. Factor the Heroes rate and down payment help into that comparison.

A spouse who works on the Tennessee side

Some military spouses teach in the Clarksville-Montgomery County School System or work for local police, fire or EMS. That spouse may qualify for Heroes on their own job, too. Either way, the household income limit counts everyone's income, so check the Montgomery County figure above before you assume you fit.

Your checklist

1. Get your VA Certificate of Eligibility through your lender or VA.
2. Gather your LES or DD-214, and any VA disability award letter.
3. Confirm every borrower's credit is at least 640. THDA's debt-to-income cap is 45%.
4. Take THDA-approved homebuyer education. The online course plus a one-on-one fits around duty schedules.
5. Pick a Heroes Plus option that matches how long you'll likely stay.

Ready to see your numbers? Check your eligibility and we'll connect you with a THDA-approved lender who closes VA loans near the post.

Things people ask

Keep reading

• Picking your Heroes Plus down payment option
• Ten-month paychecks, summer gaps and a THDA loan for teachers
• THDA's targeted counties and the first-time buyer rule
• Nashville, Memphis, Knoxville and Chattanooga: what a first home really costs
• Tennessee's transfer tax and mortgage tax at closing
• Property taxes on a Tennessee first home, and who gets relief
• No state income tax in Tennessee: what lenders actually count
• USDA loans just past the city limits
• Getting every borrower to 640 for a THDA loan