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Tennessee FHA Loan

What are Tennessee FHA Loans?
FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.


What factors determine if I am eligible for an FHA Loan in Tennessee?
To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the maximum amount that I can borrow?
The maximum amount for an FHA Mortgage is determined by:

Maximum Loan Amount in Tennessee: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in Tennessee. The highest maximum FHA Home Loan right now in Tennessee is $393,300. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the TN FHA Loan Limit chart at the bottom of this page.

Maximum financing: In Tennessee, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.

How much money will I need for the down payment and closing costs?
Tennessee FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

What property types are allowed for FHA Loans in Tennessee?
While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

More information on FHA Mortgages

What types of refinance programs does FHA offer in Tennessee?
There are three main types of FHA Refinance loans available in Tennessee.

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.


Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in Tennessee?
The maximum amount for an FHA loan is determined by

Maximum Loan Amount in Tennessee
The maximum FHA Loan Amount allowed for FHA Mortgage Refinance varies from county to county in Tennessee. The highest maximum FHA refinance loan amount right now in Tennessee is $393,300. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the Tennessee FHA Loan Limit chart at the bottom of this page.

Maximum financing: In Tennessee, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in Tennessee is 85%.

What factors determine if I am eligible for an FHA Refinance Loan?
To be eligible for an FHA Mortgage Loan Refinance in Tennessee, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

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Tennessee FHA Mortgage Limits by County

MSA Name County Name
One-Family
Two-Family
Three-Family
Four-Family
KNOXVILLE, TN (MSA) ANDERSON $271,050 $347,000 $419,425 $521,250
SHELBYVILLE, TN (MICRO) BEDFORD $271,050 $347,000 $419,425 $521,250
NON-METRO BENTON $271,050 $347,000 $419,425 $521,250
NON-METRO BLEDSOE $271,050 $347,000 $419,425 $521,250
KNOXVILLE, TN (MSA) BLOUNT $271,050 $347,000 $419,425 $521,250
CLEVELAND, TN (MSA) BRADLEY $271,050 $347,000 $419,425 $521,250
LA FOLLETTE, TN (MICRO) CAMPBELL $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) CANNON $393,300 $503,500 $608,600 $756,350
NON-METRO CARROLL $271,050 $347,000 $419,425 $521,250
JOHNSON CITY, TN (MSA) CARTER $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) CHEATHAM $393,300 $503,500 $608,600 $756,350
JACKSON, TN (MSA) CHESTER $271,050 $347,000 $419,425 $521,250
NON-METRO CLAIBORNE $271,050 $347,000 $419,425 $521,250
NON-METRO CLAY $271,050 $347,000 $419,425 $521,250
NEWPORT, TN (MICRO) COCKE $271,050 $347,000 $419,425 $521,250
TULLAHOMA, TN (MICRO) COFFEE $271,050 $347,000 $419,425 $521,250
NON-METRO CROCKETT $271,050 $347,000 $419,425 $521,250
CROSSVILLE, TN (MICRO) CUMBERLAND $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) DAVIDSON $393,300 $503,500 $608,600 $756,350
NON-METRO DECATUR $271,050 $347,000 $419,425 $521,250
NON-METRO DEKALB $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) DICKSON $393,300 $503,500 $608,600 $756,350
DYERSBURG, TN (MICRO) DYER $271,050 $347,000 $419,425 $521,250
MEMPHIS, TN-MS-AR (MSA) FAYETTE $271,050 $347,000 $419,425 $521,250
NON-METRO FENTRESS $271,050 $347,000 $419,425 $521,250
TULLAHOMA, TN (MICRO) FRANKLIN $271,050 $347,000 $419,425 $521,250
HUMBOLDT, TN (MICRO) GIBSON $271,050 $347,000 $419,425 $521,250
NON-METRO GILES $271,050 $347,000 $419,425 $521,250
MORRISTOWN, TN (MSA) GRAINGER $271,050 $347,000 $419,425 $521,250
GREENEVILLE, TN (MICRO) GREENE $271,050 $347,000 $419,425 $521,250
NON-METRO GRUNDY $271,050 $347,000 $419,425 $521,250
MORRISTOWN, TN (MSA) HAMBLEN $271,050 $347,000 $419,425 $521,250
CHATTANOOGA, TN-GA (MSA) HAMILTON $271,050 $347,000 $419,425 $521,250
NON-METRO HANCOCK $271,050 $347,000 $419,425 $521,250
NON-METRO HARDEMAN $271,050 $347,000 $419,425 $521,250
NON-METRO HARDIN $271,050 $347,000 $419,425 $521,250
KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA) HAWKINS $271,050 $347,000 $419,425 $521,250
BROWNSVILLE, TN (MICRO) HAYWOOD $271,050 $347,000 $419,425 $521,250
NON-METRO HENDERSON $271,050 $347,000 $419,425 $521,250
PARIS, TN (MICRO) HENRY $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) HICKMAN $393,300 $503,500 $608,600 $756,350
NON-METRO HOUSTON $271,050 $347,000 $419,425 $521,250
NON-METRO HUMPHREYS $271,050 $347,000 $419,425 $521,250
COOKEVILLE, TN (MICRO) JACKSON $271,050 $347,000 $419,425 $521,250
MORRISTOWN, TN (MSA) JEFFERSON $271,050 $347,000 $419,425 $521,250
NON-METRO JOHNSON $271,050 $347,000 $419,425 $521,250
KNOXVILLE, TN (MSA) KNOX $271,050 $347,000 $419,425 $521,250
NON-METRO LAKE $271,050 $347,000 $419,425 $521,250
NON-METRO LAUDERDALE $271,050 $347,000 $419,425 $521,250
LAWRENCEBURG, TN (MICRO) LAWRENCE $271,050 $347,000 $419,425 $521,250
NON-METRO LEWIS $271,050 $347,000 $419,425 $521,250
NON-METRO LINCOLN $271,050 $347,000 $419,425 $521,250
KNOXVILLE, TN (MSA) LOUDON $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) MACON $393,300 $503,500 $608,600 $756,350
JACKSON, TN (MSA) MADISON $271,050 $347,000 $419,425 $521,250
CHATTANOOGA, TN-GA (MSA) MARION $271,050 $347,000 $419,425 $521,250
LEWISBURG, TN (MICRO) MARSHALL $271,050 $347,000 $419,425 $521,250
COLUMBIA, TN (MICRO) MAURY $271,050 $347,000 $419,425 $521,250
ATHENS, TN (MICRO) MCMINN $271,050 $347,000 $419,425 $521,250
NON-METRO MCNAIRY $271,050 $347,000 $419,425 $521,250
NON-METRO MEIGS $271,050 $347,000 $419,425 $521,250
NON-METRO MONROE $271,050 $347,000 $419,425 $521,250
CLARKSVILLE, TN-KY (MSA) MONTGOMERY $271,050 $347,000 $419,425 $521,250
TULLAHOMA, TN (MICRO) MOORE $271,050 $347,000 $419,425 $521,250
NON-METRO MORGAN $271,050 $347,000 $419,425 $521,250
UNION CITY, TN-KY (MICRO) OBION $271,050 $347,000 $419,425 $521,250
COOKEVILLE, TN (MICRO) OVERTON $271,050 $347,000 $419,425 $521,250
NON-METRO PERRY $271,050 $347,000 $419,425 $521,250
NON-METRO PICKETT $271,050 $347,000 $419,425 $521,250
CLEVELAND, TN (MSA) POLK $271,050 $347,000 $419,425 $521,250
COOKEVILLE, TN (MICRO) PUTNAM $271,050 $347,000 $419,425 $521,250
NON-METRO RHEA $271,050 $347,000 $419,425 $521,250
HARRIMAN, TN (MICRO) ROANE $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) ROBERTSON $393,300 $503,500 $608,600 $756,350
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) RUTHERFORD $393,300 $503,500 $608,600 $756,350
NON-METRO SCOTT $271,050 $347,000 $419,425 $521,250
CHATTANOOGA, TN-GA (MSA) SEQUATCHIE $271,050 $347,000 $419,425 $521,250
SEVIERVILLE, TN (MICRO) SEVIER $271,050 $347,000 $419,425 $521,250
MEMPHIS, TN-MS-AR (MSA) SHELBY $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) SMITH $393,300 $503,500 $608,600 $756,350
CLARKSVILLE, TN-KY (MSA) STEWART $271,050 $347,000 $419,425 $521,250
KINGSPORT-BRISTOL-BRISTOL, TN-VA (MSA) SULLIVAN $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) SUMNER $393,300 $503,500 $608,600 $756,350
MEMPHIS, TN-MS-AR (MSA) TIPTON $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) TROUSDALE $393,300 $503,500 $608,600 $756,350
JOHNSON CITY, TN (MSA) UNICOI $271,050 $347,000 $419,425 $521,250
KNOXVILLE, TN (MSA) UNION $271,050 $347,000 $419,425 $521,250
NON-METRO VAN BUREN $271,050 $347,000 $419,425 $521,250
MCMINNVILLE, TN (MICRO) WARREN $271,050 $347,000 $419,425 $521,250
JOHNSON CITY, TN (MSA) WASHINGTON $271,050 $347,000 $419,425 $521,250
NON-METRO WAYNE $271,050 $347,000 $419,425 $521,250
MARTIN, TN (MICRO) WEAKLEY $271,050 $347,000 $419,425 $521,250
NON-METRO WHITE $271,050 $347,000 $419,425 $521,250
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) WILLIAMSON $393,300 $503,500 $608,600 $756,350
NASHVILLE-DAVIDSON--MURFREESBORO, TN (MSA) WILSON $393,300 $503,500 $608,600 $756,350

FHA loans in Tennessee's top cities:

Chattanooga Tennessee FHA Loans Clarksville Tennessee FHA Loans Jackson Tennessee FHA Loans
Johnson CityTennessee FHA Loans Knoxville Tennessee FHA Loans Memphis Tennessee FHA Loans
Murfreesboro Tennessee FHA Loans Nashville Tennessee FHA Loans Brentwood Tennessee FHA Loans
Franklin Tennessee FHA Loans Shelby Tennessee FHA Loans Davidson Tennessee FHA Loans
                                                                                                                                 

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 Why choose an FHA Home Loan?

  • FHA Home Loans require a Low 3.5% down payment.
  • Non-occupant, co-borrower are permitted to qualify for an FHA Home Loan.
  • FHA Home Loans use Expanded qualifying ratios.
  • There are no prepayment penalties for an FHA Home Loan.
  • An FHA Home Loan is fully assumable.
  • FHA Home Loans have lower MI premiums.
  • An FHA Home Loan is eligible for non-credit qualifying, streamline refinance.
  • An FHA Home Loan is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
  • An FHA Home Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
  • FHA Home Loans are offered at terms of 15 or 30 years.

 FHA Refinance Programs

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate HUD FHA Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


 FHA Refinance Questions & Answers

What are the guidelines for an FHA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be either 98.75% or 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a FHA-insured mortgage?
FHA refinance mortgages do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new HUD FHA Mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

Does it matter that the value of my home is now less than what I still owe?
Not to The FHA, but your current lender will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.


FHA Mortgage   |   FHA Refinance   |   FHA LOAN REQUIREMENTS   |   FHA MORTGAGE CALCULATOR   |   FHA MORTGAGE RATES

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