FHA Loan Limits in Nashville and Tennessee 2015
FHA loans are a great resource that opens the door to home ownership to many buyers that otherwise would not be able to qualify for a loan for the purchase of their new home.
FHA loans have a much more relaxed and forgiving approach to underwriting in regards to:
-Credit: Credit Scores as low a 620, Buyers with past credit issues such as bankruptcy and foreclosure can qualify in as little as 1 year after filing chapter 13, 2 years after discharge of chapter 7 and 3 years after a foreclosure.
-Debt to Income: While conventional guidelines call for a 36% debt ratio, FHA allows for 43% and in some cases up to 50%
-Down payment: Besides having a lower down payment requirement Nashville FHA buyers can recieve gift funds for all of their downpayment. Unlike conventional loan programs, there is no requirment for buyer's to use their own funds.
While the guidelines are very forgiving and do allow for many to qualify, FHA does limit the amount you can borrow. These limits will vary depending on where the new home is. However, in Tennessee there are only two different limits. The Nashville Metro area has one limit, and the rest of the state has another.
The Nashsville Metro area which includes, Cheatham, Davidson, Dickson, Hickman, Macon, Robertson, Rutherford, Smidt, Sumner, Trousdale, and Williamson counties have a higher FHA loan limits than the rest of the state. While all other areas of Tennessee have FHA loan limit of $271,050 the areas listed above, all of which are in the Nashville Metropolitan area, can obtain FHA financing up to $425,500.
Call me today at 866.435.6553 and let me answer your FHA questions, whether you are wanting to buy a new home in the Nashville area or other parts of Tennessee, I will happy to help you.