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2025 FHA Loan Limits in Tennessee

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Federal Housing Administration (FHA) loans are designed to give borrowers with limited funds or lower credit scores an accessible path to homeownership. FHA loans, which are especially popular with first-time homebuyers, are typically easier to qualify for than conventional loan options.

However, the amount you can borrow with an FHA loan varies, depending on the size of the property you are purchasing and where it’s located. In Tennessee, most counties cap FHA loans at $524,225 for a single-family home. But in certain counties designated as “high-cost” areas, borrowers can access as much as $989,000 to fund their home purchase.

Tennessee FHA loan limits by county

Tennessee single-family FHA loan limits

County name	One unit	Two units	Three units	Four units	Median sales price
ANDERSON	$524,225	$671,200	$811,275	$1,008,300	$350,000
BEDFORD	$524,225	$671,200	$811,275	$1,008,300	$293,000
BENTON	$524,225	$671,200	$811,275	$1,008,300	$63,000
BLEDSOE	$524,225	$671,200	$811,275	$1,008,300	$54,000
BLOUNT	$524,225	$671,200	$811,275	$1,008,300	$350,000
BRADLEY	$524,225	$671,200	$811,275	$1,008,300	$260,000
CAMPBELL	$524,225	$671,200	$811,275	$1,008,300	$350,000
CANNON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
CARROLL	$524,225	$671,200	$811,275	$1,008,300	$94,000
CARTER	$524,225	$671,200	$811,275	$1,008,300	$260,000
CHEATHAM	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
CHESTER	$524,225	$671,200	$811,275	$1,008,300	$197,000
CLAIBORNE	$524,225	$671,200	$811,275	$1,008,300	$123,000
CLAY	$524,225	$671,200	$811,275	$1,008,300	$71,000
COCKE	$524,225	$671,200	$811,275	$1,008,300	$90,000
COFFEE	$524,225	$671,200	$811,275	$1,008,300	$250,000
CROCKETT	$524,225	$671,200	$811,275	$1,008,300	$197,000
CUMBERLAND	$524,225	$671,200	$811,275	$1,008,300	$104,000
DAVIDSON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
DECATUR	$524,225	$671,200	$811,275	$1,008,300	$66,000
DEKALB	$524,225	$671,200	$811,275	$1,008,300	$150,000
DICKSON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
DYER	$524,225	$671,200	$811,275	$1,008,300	$125,000
FAYETTE	$524,225	$671,200	$811,275	$1,008,300	$340,000
FENTRESS	$524,225	$671,200	$811,275	$1,008,300	$93,000
FRANKLIN	$524,225	$671,200	$811,275	$1,008,300	$250,000
GIBSON	$524,225	$671,200	$811,275	$1,008,300	$197,000
GILES	$524,225	$671,200	$811,275	$1,008,300	$157,000
GRAINGER	$524,225	$671,200	$811,275	$1,008,300	$238,000
GREENE	$524,225	$671,200	$811,275	$1,008,300	$171,000
GRUNDY	$524,225	$671,200	$811,275	$1,008,300	$80,000
HAMBLEN	$524,225	$671,200	$811,275	$1,008,300	$238,000
HAMILTON	$524,225	$671,200	$811,275	$1,008,300	$329,000
HANCOCK	$524,225	$671,200	$811,275	$1,008,300	$80,000
HARDEMAN	$524,225	$671,200	$811,275	$1,008,300	$75,000
HARDIN	$524,225	$671,200	$811,275	$1,008,300	$99,000
HAWKINS	$524,225	$671,200	$811,275	$1,008,300	$244,000
HAYWOOD	$524,225	$671,200	$811,275	$1,008,300	$110,000
HENDERSON	$524,225	$671,200	$811,275	$1,008,300	$117,000
HENRY	$524,225	$671,200	$811,275	$1,008,300	$120,000
HICKMAN	$524,225	$671,200	$811,275	$1,008,300	$142,000
HOUSTON	$524,225	$671,200	$811,275	$1,008,300	$115,000
HUMPHREYS	$524,225	$671,200	$811,275	$1,008,300	$134,000
JACKSON	$524,225	$671,200	$811,275	$1,008,300	$253,000
JEFFERSON	$524,225	$671,200	$811,275	$1,008,300	$238,000
JOHNSON	$524,225	$671,200	$811,275	$1,008,300	$110,000
KNOX	$524,225	$671,200	$811,275	$1,008,300	$350,000
LAKE	$524,225	$671,200	$811,275	$1,008,300	$72,000
LAUDERDALE	$524,225	$671,200	$811,275	$1,008,300	$85,000
LAWRENCE	$524,225	$671,200	$811,275	$1,008,300	$150,000
LEWIS	$524,225	$671,200	$811,275	$1,008,300	$150,000
LINCOLN	$524,225	$671,200	$811,275	$1,008,300	$190,000
LOUDON	$524,225	$671,200	$811,275	$1,008,300	$350,000
MACON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
MADISON	$524,225	$671,200	$811,275	$1,008,300	$197,000
MARION	$524,225	$671,200	$811,275	$1,008,300	$329,000
MARSHALL	$524,225	$671,200	$811,275	$1,008,300	$266,000
MAURY	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
MCMINN	$524,225	$671,200	$811,275	$1,008,300	$185,000
MCNAIRY	$524,225	$671,200	$811,275	$1,008,300	$110,000
MEIGS	$524,225	$671,200	$811,275	$1,008,300	$85,000
MONROE	$524,225	$671,200	$811,275	$1,008,300	$160,000
MONTGOMERY	$524,225	$671,200	$811,275	$1,008,300	$298,000
MOORE	$524,225	$671,200	$811,275	$1,008,300	$250,000
MORGAN	$524,225	$671,200	$811,275	$1,008,300	$350,000
OBION	$524,225	$671,200	$811,275	$1,008,300	$120,000
OVERTON	$524,225	$671,200	$811,275	$1,008,300	$253,000
PERRY	$524,225	$671,200	$811,275	$1,008,300	$63,000
PICKETT	$524,225	$671,200	$811,275	$1,008,300	$140,000
POLK	$524,225	$671,200	$811,275	$1,008,300	$260,000
PUTNAM	$524,225	$671,200	$811,275	$1,008,300	$253,000
RHEA	$524,225	$671,200	$811,275	$1,008,300	$160,000
ROANE	$524,225	$671,200	$811,275	$1,008,300	$350,000
ROBERTSON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
RUTHERFORD	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
SCOTT	$524,225	$671,200	$811,275	$1,008,300	$90,000
SEQUATCHIE	$524,225	$671,200	$811,275	$1,008,300	$329,000
SEVIER	$524,225	$671,200	$811,275	$1,008,300	$345,000
SHELBY	$524,225	$671,200	$811,275	$1,008,300	$340,000
SMITH	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
STEWART	$524,225	$671,200	$811,275	$1,008,300	$298,000
SULLIVAN	$524,225	$671,200	$811,275	$1,008,300	$244,000
SUMNER	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
TIPTON	$524,225	$671,200	$811,275	$1,008,300	$340,000
TROUSDALE	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
UNICOI	$524,225	$671,200	$811,275	$1,008,300	$260,000
UNION	$524,225	$671,200	$811,275	$1,008,300	$350,000
VAN BUREN	$524,225	$671,200	$811,275	$1,008,300	$98,000
WARREN	$524,225	$671,200	$811,275	$1,008,300	$192,000
WASHINGTON	$524,225	$671,200	$811,275	$1,008,300	$260,000
WAYNE	$524,225	$671,200	$811,275	$1,008,300	$60,000
WEAKLEY	$524,225	$671,200	$811,275	$1,008,300	$120,000
WHITE	$524,225	$671,200	$811,275	$1,008,300	$182,000
WILLIAMSON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000
WILSON	$989,000	$1,266,100	$1,530,450	$1,901,950	$860,000

How are FHA loan limits determined?

The FHA uses a formula set by the National Housing Act (NHA) to determine the size of a loan that home buyers in certain regions can access.

The FHA then updates these loan limits every year, taking into account evolving factors, such as median home sale prices in the county and conforming loan limits for conventional mortgages backed by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac.

Depending on an area’s median home price and other criteria, a region could be designated by the FHA as a “low-cost area,” a “high-cost area” or a special exception because of higher construction costs in the area. The FHA uses that designation to help determine the maximum amount that homebuyers in the region can borrow.

Homebuyers living in a “low-cost” region can borrow up to $524,225 in 2025, which the FHA calls “the floor” for single-family home loan amounts. If a borrower purchases a home in a region designated by the FHA as a “high-cost” area (which the FHA calls the “ceiling” for single-family home purchases), borrowers can access up to $1,209,750. Alaska, Hawaii, Guam and the U.S. Virgin Islands are designated as special exception areas with higher loan limits of up to $1,814,625 for a single-family home in 2025.

How to qualify for an FHA loan in Tennessee

In general, FHA loans are easier to get approved for than conventional loans. For example, you may still qualify even if your down payment savings are low or your credit score is mediocre. FHA loans may also have lower costs than other loan types. Depending on your down payment amount, you’ll need a credit score of at least in the 500 to 580 range to access an FHA loan. If your credit score is above 580, you can also put down as little as 3.5% of a home’s purchase price.

To qualify for an FHA loan in your area, you’ll need:

Minimum credit score: Your credit score will need to be 580 or higher if you want to put down the minimum required down payment. However, if you’ve saved at least 10% of a home’s purchase price, you may qualify for an FHA loan with a credit score of at least 500. In some cases, you may also qualify for an FHA loan if you have little to no credit history, but pay all your other bills on time.
Minimum down payment: You don’t need a lot of cash to qualify: Borrowers with a credit score of at least 580 or higher only need a 3.5% down payment to qualify for an FHA loan. If your credit score is between 500 and 579, on the other hand, you’ll need to save at least 10% of a home’s purchase price.
Occupancy: You must live in the property for at least one year as your primary home.
Maximum DTI ratio: While the maximum debt-to-income (DTI) ratio (the sum of your monthly debt payments divided by your monthly pretax income) for FHA loans is generally 43%, some lenders may allow higher ratios.
Mortgage insurance: You must pay an upfront FHA mortgage insurance premium of 1.75% of the loan amount, which is typically financed with the mortgage principal, and an annual mortgage insurance premium of 0.15% to 0.75% of the loan amount, which is spread across your monthly mortgage payments.
Income and employment history: While FHA loans don’t have income restrictions, lenders will look for at least two years of stable employment and recurring income.
Home appraisal: Your lender will require an FHA appraisal to verify the home’s value and confirm it meets FHA property standards.

Buying a multifamily property with an FHA loan

You can also use an FHA loan to co-buy a multifamily home without tying up too much of your cash in a large down payment. For example, if you’re purchasing an income property for investment purposes or co-buying a multifamily home with friends or family, you may qualify for an FHA loan with as little as 3.5% down. But FHA loans are limited to properties with four units or less, so you need to restrict your home search to a duplex, triplex or fourplex.

To qualify for an FHA loan for a multifamily home, you’ll need:

A minimum credit score of 500 to 580.
A 3.5% to 10% down payment.
You must live in one of the units as your primary residence for at least one year.
Lenders will verify that you satisfy certain requirements for cash reserves.
You can use a portion of the anticipated rental income to qualify for the loan, but FHA lenders may only consider 75% of the potential rental income to offset your DTI ratio.

Tennessee FHA loan limits for multifamily homes reach up to $1,901,950, though the low-cost limits are lower: