FHA Loan Calculator for Tennessee

FHA Loans in Tennessee

FHA loans require a minimum 3.5% down payment (10% if credit score is 580-619). On Tennessee's median home of $310,000, that's a minimum down payment of $10,900.

FHA Loan Limits in Tennessee

FHA loan limits vary by county and are tied to conforming limits. In most Tennessee counties, the FHA floor limit is $498,257 (2024). High-cost areas like certain counties may qualify for higher limits up to $1,149,825. No Tennessee counties currently qualify for high-cost conforming limits.

FHA vs Conventional in Tennessee

FHA MIP (Mortgage Insurance Premium) is required regardless of down payment. Conventional loans eliminate PMI at 20% equity. With Tennessee's median home at $310,000, buyers who can put down $62,000 (20%) are better served by conventional financing. FHA makes sense for buyers with limited savings or credit scores below 740.

Closing Costs

Tennessee closing costs average $2,500. Tennessee charges a transfer tax of $0.37/$100 of value (a deed tax), which is very low. Overall closing costs are among the lowest in the Southeast. Sellers can contribute up to 6% of the purchase price toward FHA buyer closing costs.

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