2021 FHA Loan Limits in Tennessee
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The FHA loan limit in Tennessee has increased up to $356,362 and $586,500 for a single-family home, depending on the county. The lower number applies to Memphis and other less expensive rural areas. Folks looking to move to trendy Nashville, home of the Grand Ole Opry, may be able to qualify for the higher limit.
If you’ve had your sights set on moving to Tennessee, this may be the perfect time to buy a home or refinance, if you already own one. And thanks to the Federal Housing Administration (FHA), some Tennesseans can qualify for federally backed loans to help get them into a new house. This year, residents will be able to borrow more with an FHA loan in some areas to make their dreams of homeownership in the Volunteer State come true.
Tennessee FHA loan limits by county
| FHA Loan Limits in Tennessee | |||||
| County Name | One-Family | Two-Family | Three-Family | Four-Family | Median Sale Price |
| Anderson | $356,362 | $456,275 | $551,500 | $685,400 | $219,000 |
| Bedford | $356,362 | $456,275 | $551,500 | $685,400 | $175,000 |
| Benton | $356,362 | $456,275 | $551,500 | $685,400 | $49,000 |
| Bledsoe | $356,362 | $456,275 | $551,500 | $685,400 | $34,000 |
| Blount | $356,362 | $456,275 | $551,500 | $685,400 | $219,000 |
| Bradley | $356,362 | $456,275 | $551,500 | $685,400 | $170,000 |
| Campbell | $356,362 | $456,275 | $551,500 | $685,400 | $219,000 |
| Cannon | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| Carroll | $356,362 | $456,275 | $551,500 | $685,400 | $51,000 |
| Carter | $356,362 | $456,275 | $551,500 | $685,400 | $167,000 |
| Cheatham | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| Chester | $356,362 | $456,275 | $551,500 | $685,400 | $142,000 |
| Claiborne | $356,362 | $456,275 | $551,500 | $685,400 | $85,000 |
| Clay | $356,362 | $456,275 | $551,500 | $685,400 | $48,000 |
| Cocke | $356,362 | $456,275 | $551,500 | $685,400 | $59,000 |
| Coffee | $356,362 | $456,275 | $551,500 | $685,400 | $155,000 |
| Crockett | $356,362 | $456,275 | $551,500 | $685,400 | $142,000 |
| Cumberland | $356,362 | $456,275 | $551,500 | $685,400 | $118,000 |
| Davidson | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| Decatur | $356,362 | $456,275 | $551,500 | $685,400 | $55,000 |
| Dekalb | $356,362 | $456,275 | $551,500 | $685,400 | $112,000 |
| Dickson | $586,500 | $750,800 | $907,550 | $1,127,900 | $510,000 |
| Dyer | $356,362 | $456,275 | $551,500 | $685,400 | $90,000 |
| Fayette | $356,362 | $456,275 | $551,500 | $685,400 | $238,000 |
| Fentress | $356,362 | $456,275 | $551,500 | $685,400 | $52,000 |
| Franklin | $356,362 | $456,275 | $551,500 | $685,400 | $155,000 |
| Gibson | $356,362 | $456,275 | $551,500 | $685,400 | $142,000 |
| Giles | $356,362 | $456,275 | $551,500 | $685,400 | $103,000 |
| Grainger | $356,362 | $456,275 | $551,500 | $685,400 | $135,000 |
| Greene | $356,362 | $456,275 | $551,500 | $685,400 | $95,000 |
| Grundy | $356,362 | $456,275 | $551,500 | $685,400 | $50,000 |
| Hamblen | $356,362 | $456,275 | $551,500 | $685,400 | $135,000 |
| Hamilton | $356,362 | $456,275 | $551,500 | $685,400 | $221,000 |
| Hancock | $356,362 | $456,275 | $551,500 | $685,400 | $31,000 |
| Hardeman | $356,362 | $456,275 | $551,500 | $685,400 | $50,000 |
| Hardin | $356,362 | $456,275 | $551,500 | $685,400 | $70,000 |
| Hawkins | $356,362 | $456,275 | $551,500 | $685,400 | $168,000 |
| Haywood | $356,362 | $456,275 | $551,500 | $685,400 | $83,000 |
| Henderson | $356,362 | $456,275 | $551,500 | $685,400 | $87,000 |
| Henry | $356,362 | $456,275 | $551,500 | $685,400 | $75,000 |
| Hickman | $356,362 | $456,275 | $551,500 | $685,400 | $81,000 |
| Houston | $356,362 | $456,275 | $551,500 | $685,400 | $60,000 |
| Humphreys | $356,362 | $456,275 | $551,500 | $685,400 | $100,000 |
| Jackson | $356,362 | $456,275 | $551,500 | $685,400 | $166,000 |
| Jefferson | $356,362 | $456,275 | $551,500 | $685,400 | $135,000 |
| Johnson | $356,362 | $456,275 | $551,500 | $685,400 | $64,000 |
| Knox | $356,362 | $456,275 | $551,500 | $685,400 | $219,000 |
| Lake | $356,362 | $456,275 | $551,500 | $685,400 | $32,000 |
| Lauderdale | $356,362 | $456,275 | $551,500 | $685,400 | $68,000 |
| Lawrence | $356,362 | $456,275 | $551,500 | $685,400 | $94,000 |
How are FHA loan limits determined?
The U.S. Department of Housing and Urban Development (HUD) sets limits on how expensive a house the FHA will insure in each county in the United States. These limits are set based on the current year’s conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2021, that conforming limit is $548,250, up roughly $38,000 from 2020’s limit of $510,400.
The FHA “floor” is the largest mortgage the agency will issue in most of the country and is 65% of the conforming loan limit. In 2021, the FHA floor is set at $356,362, an increase of about $24,600 above the 2020 limit of $331,760.
The FHA “ceiling” is a higher limit that only applies to high-cost areas. This is set at 150% of the conforming loan limit, or $822,375 for single-family homes. With a few exceptions, this is generally the largest mortgage amount the agency will insure for a single-family home. In many parts of the country, loan limits fall somewhere between the FHA floor and ceiling.
Outside of the lower 48 states, FHA maximum loan limits are higher because of more expensive construction costs. These include the special exception areas of Alaska, Hawaii, Guam and the U.S. Virgin Islands.
Here are the 2021 standard FHA limits for all property types:
- One-unit: $356,362
- Two-unit: $456,275
- Three-unit: $551,500
- Four-unit: $685,400
Here are the 2021 standard FHA limits for high-cost areas:
- One-unit: $822,375
- Two-unit: $1,053,000
- Three-unit: $1,272,750
- Four-unit: $1,581,750
Do you qualify for an FHA loan in Tennessee?
FHA loans are a great deal for qualified buyers, thanks to lower down payments and closing costs. Find out if your credit score and income will help you qualify for one of these loans.
