FHA Loan Limits in Tennessee
Loans backed by the Federal Housing Administration (FHA) can be a good option for buyers having trouble qualifying for a conventional mortgage. FHA loans come with their own limits, but you can generally expect more lenient credit score requirements and a lower down payment.
In most counties in Tennessee, an FHA loan will let you borrow up to $472,030 for a single-family home. This amount goes up to $890,100 in some higher-priced counties in the Nashville area.
Tennessee FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sale price |
|---|---|---|---|---|---|
| ANDERSON | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| BEDFORD | $472,030 | $604,400 | $730,525 | $907,900 | $234,000 |
| BENTON | $472,030 | $604,400 | $730,525 | $907,900 | $60,000 |
| BLEDSOE | $472,030 | $604,400 | $730,525 | $907,900 | $50,000 |
| BLOUNT | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| BRADLEY | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| CAMPBELL | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| CANNON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| CARROLL | $472,030 | $604,400 | $730,525 | $907,900 | $75,000 |
| CARTER | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| CHEATHAM | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| CHESTER | $472,030 | $604,400 | $730,525 | $907,900 | $187,000 |
| CLAIBORNE | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| CLAY | $472,030 | $604,400 | $730,525 | $907,900 | $69,000 |
| COCKE | $472,030 | $604,400 | $730,525 | $907,900 | $76,000 |
| COFFEE | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| CROCKETT | $472,030 | $604,400 | $730,525 | $907,900 | $187,000 |
| CUMBERLAND | $472,030 | $604,400 | $730,525 | $907,900 | $142,000 |
| DAVIDSON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| DECATUR | $472,030 | $604,400 | $730,525 | $907,900 | $75,000 |
| DEKALB | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| DICKSON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| DYER | $472,030 | $604,400 | $730,525 | $907,900 | $115,000 |
| FAYETTE | $472,030 | $604,400 | $730,525 | $907,900 | $303,000 |
| FENTRESS | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| FRANKLIN | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| GIBSON | $472,030 | $604,400 | $730,525 | $907,900 | $187,000 |
| GILES | $472,030 | $604,400 | $730,525 | $907,900 | $156,000 |
| GRAINGER | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| GREENE | $472,030 | $604,400 | $730,525 | $907,900 | $130,000 |
| GRUNDY | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| HAMBLEN | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| HAMILTON | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| HANCOCK | $472,030 | $604,400 | $730,525 | $907,900 | $70,000 |
| HARDEMAN | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| HARDIN | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| HAWKINS | $472,030 | $604,400 | $730,525 | $907,900 | $208,000 |
| HAYWOOD | $472,030 | $604,400 | $730,525 | $907,900 | $81,000 |
| HENDERSON | $472,030 | $604,400 | $730,525 | $907,900 | $118,000 |
| HENRY | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| HICKMAN | $472,030 | $604,400 | $730,525 | $907,900 | $125,000 |
| HOUSTON | $472,030 | $604,400 | $730,525 | $907,900 | $123,000 |
| HUMPHREYS | $472,030 | $604,400 | $730,525 | $907,900 | $96,000 |
| JACKSON | $472,030 | $604,400 | $730,525 | $907,900 | $245,000 |
| JEFFERSON | $472,030 | $604,400 | $730,525 | $907,900 | $200,000 |
| JOHNSON | $472,030 | $604,400 | $730,525 | $907,900 | $85,000 |
| KNOX | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| LAKE | $472,030 | $604,400 | $730,525 | $907,900 | $73,000 |
| LAUDERDALE | $472,030 | $604,400 | $730,525 | $907,900 | $95,000 |
| LAWRENCE | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| LEWIS | $472,030 | $604,400 | $730,525 | $907,900 | $123,000 |
| LINCOLN | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| LOUDON | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| MACON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| MADISON | $472,030 | $604,400 | $730,525 | $907,900 | $187,000 |
| MARION | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| MARSHALL | $472,030 | $604,400 | $730,525 | $907,900 | $248,000 |
| MAURY | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| MCMINN | $472,030 | $604,400 | $730,525 | $907,900 | $160,000 |
| MCNAIRY | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| MEIGS | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| MONROE | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| MONTGOMERY | $472,030 | $604,400 | $730,525 | $907,900 | $280,000 |
| MOORE | $472,030 | $604,400 | $730,525 | $907,900 | $215,000 |
| MORGAN | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| OBION | $472,030 | $604,400 | $730,525 | $907,900 | $87,000 |
| OVERTON | $472,030 | $604,400 | $730,525 | $907,900 | $245,000 |
| PERRY | $472,030 | $604,400 | $730,525 | $907,900 | $65,000 |
| PICKETT | $472,030 | $604,400 | $730,525 | $907,900 | $79,000 |
| POLK | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| PUTNAM | $472,030 | $604,400 | $730,525 | $907,900 | $245,000 |
| RHEA | $472,030 | $604,400 | $730,525 | $907,900 | $157,000 |
| ROANE | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| ROBERTSON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| RUTHERFORD | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| SCOTT | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| SEQUATCHIE | $472,030 | $604,400 | $730,525 | $907,900 | $300,000 |
| SEVIER | $472,030 | $604,400 | $730,525 | $907,900 | $332,000 |
| SHELBY | $472,030 | $604,400 | $730,525 | $907,900 | $303,000 |
| SMITH | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| STEWART | $472,030 | $604,400 | $730,525 | $907,900 | $280,000 |
| SULLIVAN | $472,030 | $604,400 | $730,525 | $907,900 | $208,000 |
| SUMNER | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| TIPTON | $472,030 | $604,400 | $730,525 | $907,900 | $303,000 |
| TROUSDALE | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| UNICOI | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| UNION | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| VAN BUREN | $472,030 | $604,400 | $730,525 | $907,900 | $55,000 |
| WARREN | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| WASHINGTON | $472,030 | $604,400 | $730,525 | $907,900 | $225,000 |
| WAYNE | $472,030 | $604,400 | $730,525 | $907,900 | $61,000 |
| WEAKLEY | $472,030 | $604,400 | $730,525 | $907,900 | $95,000 |
| WHITE | $472,030 | $604,400 | $730,525 | $907,900 | $166,000 |
| WILLIAMSON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
| WILSON | $890,100 | $1,139,500 | $1,377,400 | $1,711,750 | $774,000 |
How are FHA loan limits determined?
FHA loan limits are set annually by county. They reflect both local housing market prices and the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In 2022, median home prices rose, causing conforming loan limits to rise by 12% for 2023.
The U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits that are between 65% and 150% of the conforming loan limits. FHA loan limits have therefore also increased since last year, settling at a national “floor” of $472,030 and “ceiling” of $1,089,300.
The floor represents the maximum loan amount allowed on a single-family home for most of the U.S. The ceiling represents the most you can borrow with an FHA loan and applies only to high-cost areas.
How to qualify for an FHA loan in Tennessee
You may find it easier to qualify for an FHA loan than a conventional mortgage, but you’ll still need to meet certain minimum requirements:
A minimum credit score of 500. If your credit score is 500 or higher, you may be eligible for an FHA loan if you can also provide a 10% down payment.
A minimum 3.5% down payment. If your credit score is 580 or higher, your required down payment goes down to 3.5%.
A debt-to-income (DTI) ratio of 43% or less. Your DTI ratio, a measure of your total monthly debt expenses compared to your total monthly income, generally needs to be less than 43%, although some lenders allow for exceptions.
Mortgage insurance. You’ll be required to buy two types of FHA mortgage insurance. The upfront mortgage insurance premium (UFMIP) costs 1.75% of your loan amount. It’s charged at closing and will be rolled into your mortgage balance. The annual mortgage insurance premium (MIP) is paid monthly over the life of your loan. It ranges between 0.15% and 0.75% of the loan amount and is added to your monthly mortgage payment.
An FHA home appraisal. To determine your home’s market value — as well as to ensure it meets minimum property requirements around safety and quality — you’ll be required to get an FHA home appraisal.
An occupancy requirement. If you use an FHA loan to buy your property, you must plan to live in it as your primary residence for at least 12 months after purchase.
Buying a multifamily property with an FHA loan
FHA loans aren’t just for single-family homes. You can also use them to buy a multifamily home that has up to four separate living units. You can still enjoy a minimum down payment of just 3.5%, as long as your credit score is at least 580. Besides letting you collect rental income, this arrangement might allow you to bypass the need for a more expensive investment property mortgage.
FHA lenders in Tennessee
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| Wells Fargo | 5 stars | 640 |
| Rocket Mortgage | 5 stars | 580 |
| Flagstar Bank | 5 stars | 580 |
| Carrington Mortgage | 3.5 stars | 500 |