Like most government-backed programs, FHA loans in Tennessee can be tricky to navigate.

Besides meeting eligibility requirements, TN FHA loans have borrowing caps that can vary greatly. For instance, you can borrow up to $331,760 for a home in the mountain town of Gatlinburg.

But in Nashville? Your borrowing power goes to $563,500.

picture of downtown Nashville Tennessee with a teal and tan banner with the words FHA Loan Tennessee Requirements

Rather than get lost in the red-tape, call the Wendy Thompson Lending Team. We’re a #1 rated mortgage lender in Tennessee, and we’re here to help you get the keys to your new home.

Here’s what you need to know about Tennessee FHA loan requirements, loan limits, lenders, and rates.

Tennessee FHA Loan Requirements and Guidelines

From the Great Smoky Mountains to Music City in Nashville, Tennessee is a great place to purchase a home.

Knowing the Tennessee FHA loan requirements can help to make your new home a reality.

Before you go house-hunting, here are the FHA loan qualifications in Tennessee:

  • Ability to repay the loan
  • Good credit score and debt-to-income ratio
  • 3.5% of the purchase price for a down payment

FHA loan guidelines in Tennessee may require you to submit proof of income. It's smart to track down your pay stubs and W-2 forms from your employer now, so you have everything you need when the time comes.

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

Currently Unavailable

N/A

600 - 619

Currently Unavailable

N/A

*Updated 4/22/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

What Are The FHA Loan Limits In Tennessee?

As I mentioned, the FHA county limits in TN can vary. 

Just east of Chattanooga in the town of Ridgeside, your TN FHA loan limit is $331,760. 

But just south of Nashville in Franklin, Tennessee, your max FHA loan amount is $563,500 – which is the highest in the state.

If you’re hoping to qualify for an FHA loan in Tennessee, the Wendy Thompson Lending Team is one of Memphis's highest-rated lenders.

We know FHA Tennessee loan limits like the back of our hand.

Here are the FHA loan limits by county in Tennessee:

tennessee FHA Loan Limits

Overview:

There’s a great deal of variety in Tennessee FHA loan limits. Generally, your FHA loan can be up to $331,760 unless you’re buying in or around Nashville. 

Nashville is the state’s capital, and where you’ll find Vanderbilt University, the Grand Ole Opry House, and the Country Music Hall of Fame. 

If you’re looking at houses in Nashville or surrounding areas, you can borrow as much as $563,500 with an FHA loan.

FHA Loan Limits In Tennessee: 

  • Lowest: $331,760
  • Highest: $563,500
  • Website

FHA Loan Limits tennessee

COUNTIES

MAX FHA LOAN LIMIT FOR A SINGLE UNIT

Anderson, Bedford, Benton, Bledsoe, Blount, Bradley, Campbell, Carroll, Carter, Chester, Claiborne, Clay, Cocke  

$331,760

Coffee, Crockett, Cumberland, Decatur, Dekalb, Dyer, Fayette, Fentress, Franklin, Gibson, Giles, Grainger, Greene

$331,760

Grundy, Hamblen, Hamilton, Hancock, Hardeman, Hardin, Hawkins, Haywood, Henderson, Henry, Hickman, Houston

$331,760

How To Apply For A FHA Loan In TN

With the different borrowing limits, you might expect different requirements to apply for an FHA loan in Tennessee.

But it’s the same across the state. Here’s how to apply for an FHA loan in Tennessee:

  • Get a pre-qualification letter from a lender
  • Search for an FHA approved home in Tennesse
  • Submit your application and required documentation to your lender

Step one above is optional, but getting a pre-qualification letter can be your ace in the hole.

It’s an extra step that many people skip. But when you have a pre-qualification letter, you set yourself apart from other buyers and show sellers you’re serious about buying a home with an FHA loan in Tennessee.

Are There Any FHA Down Payment Assistance  Tennessee Programs?

FHA down payment assistance in Tennessee can boost your chances of getting a new home. 

Here’s why:

In 2020, the average Tennessee home value was $200,257. Based on that, a person buying an averaged-priced home will need just over $7,000 for a down payment.

That’s a lot of cash.

Down payment assistance programs for FHA loans in Tennessee can help.

The Tactical FHA Loan Blueprint

FHA First Time Home Buyer TN Assistance

The Tennessee Housing Development Agency has a Great Choice Home Loan program for FHA first-time homebuyers in TN.

The program offers down payment assistance but requires you to meet a minimum credit score and attend a homebuyer education class.

FHA Loan Limits tennessee

COUNTIES

MAX FHA LOAN LIMIT FOR A SINGLE UNIT

Humphreys, Jackson, Jefferson, Johnson, Knox, Lake, Lauderdale, Lawrence, Lewis, Lincoln, Loudon, Mcminn

$331,760

Mcnairy, Madison, Marion, Marshall, Meigs, Monroe, Montgomery, Moore, Morgan, Obion, Overton, Perry

$331,760

Can I Get A FHA Cash-Out Refinance Mortgage?

An FHA cash-out refinance in Tennessee is an excellent option for homeowners to tap into their home equity.

You can refinance your mortgage with an FHA cash-out refinance in TN and borrow money to:

  • Buy a new home
  • Remodel your home
  • Upgrade appliances
  • Other home improvements

Does The FHA Offer Construction or Home Improvement Loans?

Want to build a brand-new house you can customize?

An FHA construction loan in Tennessee could be the answer. It lets you roll in the costs of building a home to your FHA loan.

You also have the option to remodel and upgrade an existing house with an FHA Tennessee home improvement loan. 

If you buy an existing house that needs some work, look into an FHA 203(k) rehabilitation loan.

Best FHA Lenders In TN

Now that you know more about how FHA loans in TN, you’re probably ready to start the ball rolling on your new house!

Fortunately, the Wendy Thompson Lending Team is your one-stop-shop for FHA loans in Tennessee. Not only are we an FHA-approved lender, but we’re a top-rated lender in Tennessee, too!

We’re not the only lender. There’s also HomeRate Mortgage, Mortgage Investors Group, and Eagle Mortgage and Funding.

But for personalized service and a commitment to your satisfaction, the Wendy Thompson Lending Team is an excellent choice for an FHA lender in Tennessee.

Fico score

APR

Mo. Payment

700+

3.375 %

$1,508.00

660 - 699

3.5 %

$1,525.00

640 - 659

3.625 %

$1,542.00

620 - 639

Currently Unavailable

N/A

600 - 619

Currently Unavailable

N/A

*Updated 4/22/20 - Rates are based on a $250,000 home with a 3.5% down payment, and includes principal, interest, taxes and insurance.  Rates change often and differ based on your state, down payment, and loan amount.  Click here for correct rates based on your situation.  

Where to Find Current FHA Mortgage Rates In Tennessee

You’ll get over 1 million results if you Google “current FHA mortgage rates in Tennessee.” And the results can vary as much as a full percentage point or more!

Yikes!

Rather than sift through all of that information, we can give you current Tennessee FHA rates for your situation.

Your rate depends in part on your credit score. We recommend you have a credit score of at least 640 to qualify for the 3.5% down payment option with a TN FHA loan.

Here are sample rates you can expect in TN based on credit score:

FHA Loan Limits tennessee

COUNTIES

MAX FHA LOAN LIMIT FOR A SINGLE UNIT

Pickett, Polk, Putnam, Rhea, Roane, Scott, Sequatchie, Sevier, Shelby, Stewart, Sullivan, Tipton, Unicoi, Union, Van Buren, Warren, Washington, Wayne, Weakley, White

$331,760

Cannon, Cheatham, Davidson, Dickson, Macon, Maury, Robertson, Rutherford, Smith, Sumner, Trousdale, Williamson, Wilson

$563,500

Tennessee FHA Loan Calculator

For a custom mortgage experience, use our FHA mortgage calculator for Tennessee.

Here’s how it works…

Enter your home information into the Tennessee FHA loan calculator, including the estimated home price, down payment amount, loan term, current interest rate, yearly property tax, and home insurance amount.

Just like magic, it will calculate what your monthly mortgage payment might look like.

Now, here’s where the customization comes in:

Want a lower monthly payment? Try increasing your down payment or boosting your credit score to qualify for a lower interest rate.

Where Can I Find FHA Homes For Sale In TN?

Tennessee has many FHA approved homes for sale to choose from. Real estate sites like Zillow and Trulia are an excellent place to start your search.

You can use them to search for FHA approved condos in Tennessee, too. 

Keep in mind that it's smart to know your FHA max loan amount in Tennessee and how much house you qualify for before shopping for a home.

And we can help with that!

Contact the Wendy Thompson Lending Team to get an FHA approved home in Tennessee!