FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Tennessee

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Loans backed by the Federal Housing Administration (FHA) may be a good option for first-time homebuyers, as well as for buyers who otherwise have trouble qualifying for a conventional mortgage. The loans come with their own limits, but you can generally expect more lenient credit scores and a lower down payment.

In most counties in Tennessee, an FHA loan will let you borrow up to $420,680 for a single-family home. This amount goes up to $694,600 in some higher-priced counties in the Nashville area.

Tennessee FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sales price
ANDERSON$420,680$538,650$651,050$809,150$250,000
BEDFORD$420,680$538,650$651,050$809,150$203,000
BENTON$420,680$538,650$651,050$809,150$55,000
BLEDSOE$420,680$538,650$651,050$809,150$38,000
BLOUNT$420,680$538,650$651,050$809,150$250,000
BRADLEY$420,680$538,650$651,050$809,150$198,000
CAMPBELL$420,680$538,650$651,050$809,150$250,000
CANNON$694,600$889,200$1,074,850$1,335,800$604,000
CARROLL$420,680$538,650$651,050$809,150$70,000
CARTER$420,680$538,650$651,050$809,150$185,000
CHEATHAM$694,600$889,200$1,074,850$1,335,800$604,000
CHESTER$420,680$538,650$651,050$809,150$160,000
CLAIBORNE$420,680$538,650$651,050$809,150$85,000
CLAY$420,680$538,650$651,050$809,150$55,000
COCKE$420,680$538,650$651,050$809,150$60,000
COFFEE$420,680$538,650$651,050$809,150$179,000
CROCKETT$420,680$538,650$651,050$809,150$160,000
CUMBERLAND$420,680$538,650$651,050$809,150$135,000
DAVIDSON$694,600$889,200$1,074,850$1,335,800$604,000
DECATUR$420,680$538,650$651,050$809,150$50,000
DEKALB$420,680$538,650$651,050$809,150$120,000
DICKSON$694,600$889,200$1,074,850$1,335,800$604,000
DYER$420,680$538,650$651,050$809,150$100,000
FAYETTE$420,680$538,650$651,050$809,150$265,000
FENTRESS$420,680$538,650$651,050$809,150$60,000
FRANKLIN$420,680$538,650$651,050$809,150$179,000
GIBSON$420,680$538,650$651,050$809,150$160,000
GILES$420,680$538,650$651,050$809,150$125,000
GRAINGER$420,680$538,650$651,050$809,150$150,000
GREENE$420,680$538,650$651,050$809,150$110,000
GRUNDY$420,680$538,650$651,050$809,150$60,000
HAMBLEN$420,680$538,650$651,050$809,150$150,000
HAMILTON$420,680$538,650$651,050$809,150$251,000
HANCOCK$420,680$538,650$651,050$809,150$50,000
HARDEMAN$420,680$538,650$651,050$809,150$65,000
HARDIN$420,680$538,650$651,050$809,150$85,000
HAWKINS$420,680$538,650$651,050$809,150$183,000
HAYWOOD$420,680$538,650$651,050$809,150$83,000
HENDERSON$420,680$538,650$651,050$809,150$101,000
HENRY$420,680$538,650$651,050$809,150$85,000
HICKMAN$420,680$538,650$651,050$809,150$80,000
HOUSTON$420,680$538,650$651,050$809,150$76,000
HUMPHREYS$420,680$538,650$651,050$809,150$120,000
JACKSON$420,680$538,650$651,050$809,150$190,000
JEFFERSON$420,680$538,650$651,050$809,150$150,000
JOHNSON$420,680$538,650$651,050$809,150$90,000
KNOX$420,680$538,650$651,050$809,150$250,000
LAKE$420,680$538,650$651,050$809,150$49,000
LAUDERDALE$420,680$538,650$651,050$809,150$69,000
LAWRENCE$420,680$538,650$651,050$809,150$117,000
LEWIS$420,680$538,650$651,050$809,150$95,000
LINCOLN$420,680$538,650$651,050$809,150$130,000
LOUDON$420,680$538,650$651,050$809,150$250,000
MACON$694,600$889,200$1,074,850$1,335,800$604,000
MADISON$420,680$538,650$651,050$809,150$160,000
MARION$420,680$538,650$651,050$809,150$251,000
MARSHALL$420,680$538,650$651,050$809,150$218,000
MAURY$694,600$889,200$1,074,850$1,335,800$604,000
MCMINN$420,680$538,650$651,050$809,150$130,000
MCNAIRY$420,680$538,650$651,050$809,150$90,000
MEIGS$420,680$538,650$651,050$809,150$100,000
MONROE$420,680$538,650$651,050$809,150$90,000
MONTGOMERY$420,680$538,650$651,050$809,150$235,000
MOORE$420,680$538,650$651,050$809,150$179,000
MORGAN$420,680$538,650$651,050$809,150$250,000
OBION$420,680$538,650$651,050$809,150$91,000
OVERTON$420,680$538,650$651,050$809,150$190,000
PERRY$420,680$538,650$651,050$809,150$50,000
PICKETT$420,680$538,650$651,050$809,150$60,000
POLK$420,680$538,650$651,050$809,150$198,000
PUTNAM$420,680$538,650$651,050$809,150$190,000
RHEA$420,680$538,650$651,050$809,150$139,000
ROANE$420,680$538,650$651,050$809,150$250,000
ROBERTSON$694,600$889,200$1,074,850$1,335,800$604,000
RUTHERFORD$694,600$889,200$1,074,850$1,335,800$604,000
SCOTT$420,680$538,650$651,050$809,150$62,000
SEQUATCHIE$420,680$538,650$651,050$809,150$251,000
SEVIER$420,680$538,650$651,050$809,150$245,000
SHELBY$420,680$538,650$651,050$809,150$265,000
SMITH$694,600$889,200$1,074,850$1,335,800$604,000
STEWART$420,680$538,650$651,050$809,150$235,000
SULLIVAN$420,680$538,650$651,050$809,150$183,000
SUMNER$694,600$889,200$1,074,850$1,335,800$604,000
TIPTON$420,680$538,650$651,050$809,150$265,000
TROUSDALE$694,600$889,200$1,074,850$1,335,800$604,000
UNICOI$420,680$538,650$651,050$809,150$185,000
UNION$420,680$538,650$651,050$809,150$250,000
VAN BUREN$420,680$538,650$651,050$809,150$56,000
WARREN$420,680$538,650$651,050$809,150$130,000
WASHINGTON$420,680$538,650$651,050$809,150$185,000
WAYNE$420,680$538,650$651,050$809,150$50,000
WEAKLEY$420,680$538,650$651,050$809,150$89,000
WHITE$420,680$538,650$651,050$809,150$125,000
WILLIAMSON$694,600$889,200$1,074,850$1,335,800$604,000
WILSON$694,600$889,200$1,074,850$1,335,800$604,000

How are FHA loan limits determined?

FHA loan limits can fluctuate from year to year and county by county. They reflect both local housing market prices and the maximum amounts borrowers are able to access through conventional mortgages. These amounts are set by the Federal Housing Finance Agency (FHFA) and are called conforming loan limits. The U.S. Department of Housing and Urban Development (HUD) uses them in turn to set FHA loan limits that are between 65% and 150% of the conforming loan limits.

FHA loan limits have both a “floor” and a “ceiling.”  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. In 2021, home prices rose 18% across the country, so FHA loan limits rose too.

How to qualify for an FHA loan in Tennessee

You may find it easier qualifying for an FHA loan than a conventional mortgage, but you’ll still need to meet certain minimum requirements. If this is your first time purchasing a home, you could qualify for even more financial assistance from Tennessee’s first-time homebuyer programs to help with down payment costs.

Regardless of how many times you’ve purchased a home before, it’s important to be aware of FHA loan requirements before you apply:

  • 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 FICO 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 debt-to-income 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 0.45% and 1.05% 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 — you’ll be required to get an FHA 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, with just 3.5% down, as long as your FICO 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

These five highly rated mortgage lenders are licensed to practice in Tennessee:

Lender name LT rating Minimum FHA credit score 
Rocket Mortgage9.5/10580
Veterans United10/10620
Lower10/10580
Better Mortgage9.5/10620
PNC9/10620

 

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