If you’re buying a home in Tennessee in 2025 with an FHA-backed mortgage, it’s important to understand the FHA loan limits. These limits, set by the U.S. Department of Housing and Urban Development (HUD), determine the maximum you can borrow with an FHA-insured loan. Staying within these limits helps you access benefits like lower down payment requirements and more flexible credit score criteria, while avoiding financing options that may carry higher costs.
In this guide, we’ll break down the 2025 FHA loan limits for Tennessee, explain how they are calculated, and highlight what they mean for your homebuying options.
2025 FHA Loan Limits for Tennessee
For 2025, FHA loan limits in Tennessee for a single-family home have a baseline (standard) limit of $524,225. In designated higher-cost counties—where median home values exceed HUD thresholds—the limit increases up to $989,000. This tiered approach reflects local market differences across the state, from more affordable rural counties to pricier metro regions such as Davidson County (Nashville) and Williamson County.
| County | 1 Unit | 2 Units | 3 Units | 4 Units |
|---|---|---|---|---|
| Anderson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Bedford County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Benton County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Bledsoe County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Blount County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Bradley County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Campbell County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Cannon County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Carroll County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Carter County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Cheatham County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Chester County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Claiborne County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Clay County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Cocke County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Coffee County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Crockett County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Cumberland County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Davidson County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Decatur County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| DeKalb County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Dickson County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Dyer County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Fayette County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Fentress County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Franklin County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Gibson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Giles County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Grainger County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Greene County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Grundy County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hamblen County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hamilton County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hancock County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hardeman County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hardin County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hawkins County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Haywood County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Haywood County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Henderson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Henry County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Hickman County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Houston County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Humphreys County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Jackson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Jefferson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Johnson County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Knox County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Lake County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Lauderdale County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Lawrence County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Lewis County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Lincoln County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Loudon County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Macon County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Madison County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Marion County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Marshall County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Maury County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| McMinn County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| McNairy County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Meigs County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Monroe County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Montgomery County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Moore County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Morgan County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Obion County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Overton County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Perry County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Pickett County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Polk County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Putnam County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Rhea County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Roane County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Robertson County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Rutherford County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Scott County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Sequatchie County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Sevier County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Shelby County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Smith County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Stewart County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Sullivan County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Sumner County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Tipton County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Trousdale County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Unicoi County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Union County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Van Buren County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Warren County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Washington County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Wayne County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Weakley County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| White County | $524,225 | $671,200 | $811,275 | $1,008,300 |
| Williamson County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
| Wilson County | $989,000 | $1,266,100 | $1,530,450 | $1,901,950 |
How Are FHA Loan Limits Determined?
HUD sets FHA loan limits annually based on national and local housing data. First, HUD establishes a national “floor” and “ceiling” for one-unit properties using statutory formulas tied to median home prices. Then, HUD compares each county’s median home price to these thresholds: if a county’s median exceeds a set percentage of the national baseline, it qualifies as a “high-cost area,” triggering the higher limit up to the ceiling.
As housing markets shift, HUD updates these limits each year to keep FHA financing aligned with local home values. For 2025, rising prices in select Tennessee metros prompted increases to the high-cost thresholds.
Why Do FHA Loan Limits Matter?
FHA loan limits set the maximum you can borrow under an FHA-insured mortgage. These limits influence:
- Eligibility for FHA Financing: If your desired loan amount (purchase price minus down payment) exceeds the FHA limit for your county, you cannot use FHA insurance and must consider conventional or jumbo financing.
- Down Payment Planning: FHA loans typically require a 3.5% down payment for eligible borrowers. Knowing the limit helps you calculate the cash needed and decide whether to adjust your purchase price or increase your down payment to stay within FHA guidelines.
- Refinance Options: FHA Streamline and other FHA refinance programs are only available up to the FHA limit. If your existing mortgage balance or desired cash-out amount exceeds the limit, you’ll need a conventional refinance.
- Monthly Payment & Mortgage Insurance: FHA loans require mortgage insurance premiums (MIP). Staying within FHA limits ensures you can leverage FHA’s underwriting flexibility (e.g., more lenient credit score requirements) in exchange for MIP, rather than facing potentially higher costs or stricter criteria with conventional or jumbo products.
- Competitive Strategy: In competitive Tennessee markets, buyers may bid above FHA limits; understanding local ceilings helps determine whether to offer a higher down payment or choose a different loan type.
Benefits of Staying Within FHA Limits
- Lower Down Payment: As low as 3.5% for borrowers meeting FHA credit guidelines.
- Flexible Credit Requirements: FHA typically accommodates lower credit scores than many conventional programs.
- Competitive Interest Rates: FHA-backed loans often feature attractive rates for qualified borrowers.
- Access to FHA Refinance Programs: Including streamlined or rate/term refinance with limited documentation requirements.
Understanding FHA loan limits empowers you to make informed decisions throughout your homebuying journey, helping you choose the right financing, manage costs, and stay competitive in today’s housing market.
Frequently Asked Questions
How do FHA loan limits compare to Tennessee conforming loan limits?
For 2025, Tennessee conforming loan limits (set by FHFA) have a baseline of $806,500, with certain high-cost counties also at $989,000 for conforming purposes. FHA limits ($524,225 baseline; up to $989,000 high-cost) are generally lower than conforming limits in standard counties but align in some high-cost counties. If your target loan exceeds FHA limits but remains below the conforming cap, a conventional loan with PMI may be an option.
How do I find my county’s FHA limit?
Use HUD’s official county-by-county FHA loan limits lookup or JVM Lending’s Loan Limit Checker tool for quick access to updated 2025 figures by Tennessee county.
Can FHA loans be used to buy multi-unit properties?
Yes. FHA loan limits increase with the number of units: duplex, triplex, and fourplex limits are higher than single-family limits.
Do FHA limits change every year?
Yes. HUD reviews and publishes new FHA loan limits annually, effective January 1, based on updated home price data.
Ready to Explore FHA Loan Options in Tennessee?
If you’re considering an FHA loan for your Tennessee home purchase in 2025, JVM Lending’s experienced mortgage team can guide you through county-specific limits, eligibility criteria, and the application process. Understanding these limits upfront helps you choose the right financing path and avoid unexpected hurdles.
Contact us today to get started and find the FHA loan that fits your needs in Tennessee.