2024 FHA Loan Limits in Tennessee
Loans backed by the Federal Housing Administration (FHA) can be a good financing option if you need more leniency than most conventional mortgage requirements. Known for smaller down payments and a lower credit-score threshold, FHA loans are a popular route to take for many Americans. But the amount you’re eligible to receive can vary by county.
The 2024 FHA loan limit in Tennessee is $498,257 in most areas and $943,000 in more expensive counties. Here’s what you need to know about FHA loans in Tennessee to help you get the best financing option on your new home.
Tennessee FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ANDERSON | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| BEDFORD | $498,257 | $637,950 | $771,125 | $958,350 | $257,000 |
| BENTON | $498,257 | $637,950 | $771,125 | $958,350 | $57,000 |
| BLEDSOE | $498,257 | $637,950 | $771,125 | $958,350 | $42,000 |
| BLOUNT | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| BRADLEY | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| CAMPBELL | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| CANNON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| CARROLL | $498,257 | $637,950 | $771,125 | $958,350 | $66,000 |
| CARTER | $498,257 | $637,950 | $771,125 | $958,350 | $243,000 |
| CHEATHAM | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| CHESTER | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| CLAIBORNE | $498,257 | $637,950 | $771,125 | $958,350 | $95,000 |
| CLAY | $498,257 | $637,950 | $771,125 | $958,350 | $64,000 |
| COCKE | $498,257 | $637,950 | $771,125 | $958,350 | $75,000 |
| COFFEE | $498,257 | $637,950 | $771,125 | $958,350 | $232,000 |
| CROCKETT | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| CUMBERLAND | $498,257 | $637,950 | $771,125 | $958,350 | $140,000 |
| DAVIDSON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| DECATUR | $498,257 | $637,950 | $771,125 | $958,350 | $73,000 |
| DEKALB | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| DICKSON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| DYER | $498,257 | $637,950 | $771,125 | $958,350 | $112,000 |
| FAYETTE | $498,257 | $637,950 | $771,125 | $958,350 | $328,000 |
| FENTRESS | $498,257 | $637,950 | $771,125 | $958,350 | $77,000 |
| FRANKLIN | $498,257 | $637,950 | $771,125 | $958,350 | $232,000 |
| GIBSON | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| GILES | $498,257 | $637,950 | $771,125 | $958,350 | $135,000 |
| GRAINGER | $498,257 | $637,950 | $771,125 | $958,350 | $224,000 |
| GREENE | $498,257 | $637,950 | $771,125 | $958,350 | $140,000 |
| GRUNDY | $498,257 | $637,950 | $771,125 | $958,350 | $85,000 |
| HAMBLEN | $498,257 | $637,950 | $771,125 | $958,350 | $224,000 |
| HAMILTON | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| HANCOCK | $498,257 | $637,950 | $771,125 | $958,350 | $52,000 |
| HARDEMAN | $498,257 | $637,950 | $771,125 | $958,350 | $82,000 |
| HARDIN | $498,257 | $637,950 | $771,125 | $958,350 | $85,000 |
| HAWKINS | $498,257 | $637,950 | $771,125 | $958,350 | $225,000 |
| HAYWOOD | $498,257 | $637,950 | $771,125 | $958,350 | $107,000 |
| HENDERSON | $498,257 | $637,950 | $771,125 | $958,350 | $122,000 |
| HENRY | $498,257 | $637,950 | $771,125 | $958,350 | $118,000 |
| HICKMAN | $498,257 | $637,950 | $771,125 | $958,350 | $95,000 |
| HOUSTON | $498,257 | $637,950 | $771,125 | $958,350 | $104,000 |
| HUMPHREYS | $498,257 | $637,950 | $771,125 | $958,350 | $120,000 |
| JACKSON | $498,257 | $637,950 | $771,125 | $958,350 | $260,000 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 | $224,000 |
| JOHNSON | $498,257 | $637,950 | $771,125 | $958,350 | $98,000 |
| KNOX | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| LAKE | $498,257 | $637,950 | $771,125 | $958,350 | $50,000 |
| LAUDERDALE | $498,257 | $637,950 | $771,125 | $958,350 | $92,000 |
| LAWRENCE | $498,257 | $637,950 | $771,125 | $958,350 | $148,000 |
| LEWIS | $498,257 | $637,950 | $771,125 | $958,350 | $144,000 |
| LINCOLN | $498,257 | $637,950 | $771,125 | $958,350 | $155,000 |
| LOUDON | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| MACON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| MADISON | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| MARSHALL | $498,257 | $637,950 | $771,125 | $958,350 | $259,000 |
| MAURY | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| MCMINN | $498,257 | $637,950 | $771,125 | $958,350 | $162,000 |
| MCNAIRY | $498,257 | $637,950 | $771,125 | $958,350 | $100,000 |
| MEIGS | $498,257 | $637,950 | $771,125 | $958,350 | $99,000 |
| MONROE | $498,257 | $637,950 | $771,125 | $958,350 | $150,000 |
| MONTGOMERY | $498,257 | $637,950 | $771,125 | $958,350 | $290,000 |
| MOORE | $498,257 | $637,950 | $771,125 | $958,350 | $232,000 |
| MORGAN | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| OBION | $498,257 | $637,950 | $771,125 | $958,350 | $90,000 |
| OVERTON | $498,257 | $637,950 | $771,125 | $958,350 | $260,000 |
| PERRY | $498,257 | $637,950 | $771,125 | $958,350 | $60,000 |
| PICKETT | $498,257 | $637,950 | $771,125 | $958,350 | $80,000 |
| POLK | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| PUTNAM | $498,257 | $637,950 | $771,125 | $958,350 | $260,000 |
| RHEA | $498,257 | $637,950 | $771,125 | $958,350 | $160,000 |
| ROANE | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| ROBERTSON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| RUTHERFORD | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| SCOTT | $498,257 | $637,950 | $771,125 | $958,350 | $85,000 |
| SEQUATCHIE | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| SEVIER | $498,257 | $637,950 | $771,125 | $958,350 | $330,000 |
| SHELBY | $498,257 | $637,950 | $771,125 | $958,350 | $328,000 |
| SMITH | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| STEWART | $498,257 | $637,950 | $771,125 | $958,350 | $290,000 |
| SULLIVAN | $498,257 | $637,950 | $771,125 | $958,350 | $225,000 |
| SUMNER | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| TIPTON | $498,257 | $637,950 | $771,125 | $958,350 | $328,000 |
| TROUSDALE | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| UNICOI | $498,257 | $637,950 | $771,125 | $958,350 | $243,000 |
| UNION | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| VAN BUREN | $498,257 | $637,950 | $771,125 | $958,350 | $60,000 |
| WARREN | $498,257 | $637,950 | $771,125 | $958,350 | $175,000 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $243,000 |
| WAYNE | $498,257 | $637,950 | $771,125 | $958,350 | $69,000 |
| WEAKLEY | $498,257 | $637,950 | $771,125 | $958,350 | $91,000 |
| WHITE | $498,257 | $637,950 | $771,125 | $958,350 | $176,000 |
| WILLIAMSON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
| WILSON | $943,000 | $1,207,200 | $1,459,250 | $1,813,500 | $820,000 |
How are FHA loan limits determined?
To keep up with the changing cost of living, the FHA revises loan limits each year according to a formula determined by the National Housing Act. The formula uses the latest data on home sales to adjust FHA loan limits, establishing the lowest maximum amount, or “floor,” and a maximum loan amount known as the “ceiling.”
The floor and ceiling loan limits are established by taking a percentage of the national conforming loan limit set by the Federal Housing Finance Agency (FHFA) for conventional mortgages guaranteed or owned by Fannie Mae or Freddie Mac.
In 2024, the national conforming loan limit for a single-family property is $766,550. The FHA determines the floor loan limit at 65% of the conforming loan limit, or $498,257. On the opposite end of the spectrum, the maximum ceiling loan limit lies at 150% of the national conforming loan limit, or $1,149,825.
Special exceptions apply to areas where the cost of living is even higher. Homebuyers in Alaska, Hawaii, Guam and the U.S. Virgin Islands may qualify for larger amounts to account for inflated construction costs.
How to qualify for an FHA loan in Tennessee
Although FHA loans are known to be less strict than conventional loan options, it is important to understand the eligibility criteria while shopping for a home. FHA loans may make it easier to qualify, but the lender will require sufficient evidence that you can provide a downpayment and, ultimately, repay your loan. When homebuyers apply for an FHA loan, lenders will assess a variety of factors in the qualification process, including:
→ Down payment. A 3.5% down payment is required for homebuyers with a credit score of 580 or higher. For homebuyers with a credit score between 500 and 579, a 10% downpayment is required for FHA loans.
→ Credit score. The minimum credit score needed for FHA loans is 500. For those who want to put down the minimum down payment of 3.5%, a credit score of at least 580 is required.
→ Debt-to-Income (DTI) ratio. DTI is calculated by dividing your total monthly debt by your pre-tax monthly income. The maximum DTI ratio for FHA loans is 43%, but exceptions can be made up to 50% for those with a high credit score and extra cash reserves.
→ Mortgage insurance. FHA loans require an extra layer of FHA mortgage insurance when compared to a conventional loan. Both an upfront premium of 1.75% of the loan amount and an annual mortgage insurance premium that ranges between 0.15% and 0.75% of the loan amount will add to your total monthly payments.
→ Income limits. FHA loans do not have income limits.
→ Occupancy. Homebuyers are required to reside in the property for at least one year.
Both rookie and veteran investors seek multifamily properties to add to their portfolios. Many homebuyers may think that property investments require a hefty downpayment, but FHA loans can be used to purchase properties with two to four units with just 3.5% down. You’ll still need to meet these requirements:
→ Credit score. You need a minimum credit score of 500 to qualify, although this comes with a 10% down payment requirement. For a 3.5% down payment, you’ll need a credit score of at least 580.
→ Primary residency. You must occupy one of the units for at least one year.
→ Debt-to-income ratio. You need a DTI ratio at or below 43%. This means your monthly debt cannot be more than 43% of your gross monthly income.
→ Cash reserves. If you plan on renting out the other units, having cash reserves in the bank is required for FHA loans.
→ Mortgage insurance. Multifamily homes purchased with FHA loans are subject to both upfront and annual mortgage insurance premiums.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in Tennessee
| Lender | LendingTree rating | Minimum FHA credit score | |
|---|---|---|---|
 |  Read our review | 580 | Get offers |
 | Read our review | Not disclosed | Get offers |
 | Read our review | 580 | Get offers |
 | Read our review | 580 | Get offers |
 |  Read our review | 580 | Get offers |