FHA Loan Hendersonville TN: 2026 Limits, MIP and Credit
An FHA loan in Hendersonville TN lets qualified buyers put as little as 3.5% down with a credit score of 580 or higher. Sumner County is part of the Nashville metro area, where the 2026 FHA limit for a one-unit home is $1,029,250. FHA loans charge an upfront and an annual mortgage insurance premium, so compare the full cost against conventional options.
With Sumner County’s third-quarter median sale price at $476,000 (Zeitlin Sotheby’s International Realty, RealTracs data), many buyers want a loan with a smaller down payment and flexible credit rules. Here’s how FHA works in Hendersonville, Gallatin, and the rest of Sumner County for 2026.
Key Takeaways
- 3.5% down with a 580+ credit score. Scores from 500 to 579 generally need 10% down.
- 2026 Sumner County FHA limit: $1,029,250 for a one-unit home, as part of the Nashville-Davidson-Murfreesboro-Franklin metro area.
- Mortgage insurance: a 1.75% upfront premium (usually financed) plus an annual premium, commonly 0.55% for most 30-year loans with less than 5% down.
- Primary homes only. FHA is for a home you’ll live in, including 2-4 unit properties if you live in one unit.
- 2027 limits are coming. HUD usually announces next year’s limits late in the year.
What Is the 2026 FHA Loan Limit in Sumner County?
HUD sets FHA limits by county. For 2026, HUD’s national “floor” is $541,287 and the high-cost “ceiling” is $1,249,125 for a one-unit home (HUD Mortgagee Letter 2025-23; see HUD’s FHA mortgage limits page). Because Sumner County is in the Nashville metro, its limits are above the floor:
| Property type | 2026 Sumner County FHA limit |
|---|---|
| 1 unit | $1,029,250 |
| 2 units | $1,317,650 |
| 3 units | $1,592,700 |
| 4 units | $1,979,350 |
Source: HUD 2026 FHA mortgage limits for the Nashville metro area, as compiled by loan limit lookup sites. Confirm the current figure in HUD’s FHA mortgage limits tool.
In practice, most Hendersonville buyers won’t come close to the limit. The bigger questions are down payment, credit, and the cost of mortgage insurance.
What Are the FHA Requirements in Tennessee?
FHA rules are national, but lenders can add their own requirements, called overlays. The basics from HUD:
- Credit score: 580 or higher for 3.5% down; 500 to 579 generally needs 10% down. Many lenders set a higher minimum.
- Down payment: Can come from savings or an acceptable gift from a family member.
- Debt-to-income ratio: Lenders review your total monthly debts against your income, and some approvals allow higher ratios with strong compensating factors.
- Occupancy: You must live in the home as your primary residence.
- Property condition: The FHA appraisal checks that the home meets HUD’s minimum property standards for safety and soundness.
- Seller help: Sellers can contribute up to 6% of the sales price toward eligible closing costs.
If you’re buying your first home, our Hendersonville first-time home buyer guide walks through each step.
How Much Does FHA Mortgage Insurance Cost?
FHA loans have two mortgage insurance premiums (MIP):
- Upfront MIP: 1.75% of the base loan amount, usually added to the loan.
- Annual MIP: Paid monthly. For most 30-year loans with less than 5% down and a base loan of $726,200 or less, the rate is 0.55% per year.
If you put less than 10% down, annual MIP generally lasts for the life of the loan. With 10% or more down, it typically ends after 11 years. Many FHA borrowers later refinance into a conventional loan once they have enough equity.
Good news for 2026: Mortgage insurance premiums, including FHA MIP, are tax-deductible again starting in 2026 for itemizers below certain income limits, according to the IRS. Ask your tax preparer whether you qualify.
What Would an FHA Payment Look Like in Hendersonville?
Here’s an illustrative example on a $400,000 home, using Mortgage News Daily’s November 4, 2026, average FHA rate of 6.89%:
- Down payment (3.5%): $14,000
- Base loan: $386,000, plus $6,755 upfront MIP, for a total loan of $392,755
- Principal and interest: About $2,584 per month
- Annual MIP: About $177 per month
Property taxes and homeowners insurance are extra. Your rate depends on your credit, the lender, and the market, so this is not a quote.
Is FHA or Conventional Better in Hendersonville?
It depends on your credit and down payment:
- FHA often fits buyers with scores in the 580s to 600s, higher debt ratios, or recent credit bumps.
- Conventional often fits buyers with stronger credit, because private mortgage insurance can cost less and can be removed once you reach enough equity.
The best approach is to compare both side by side. Our conventional loan guide for Hendersonville explains the other option. If you’re a veteran, compare a $0-down VA loan too, especially with Veterans Day coming up on November 11.
Down payment assistance may also be available through several of our lender partners, subject to eligibility.
Frequently Asked Questions
What is the FHA loan limit in Sumner County TN for 2026?
The 2026 FHA limit for a one-unit home in Sumner County is $1,029,250, because the county is part of the Nashville metro area. Limits are higher for 2-4 unit properties. Confirm current figures in HUD’s FHA mortgage limits tool.
What credit score do I need for an FHA loan in Hendersonville?
HUD allows 3.5% down with a credit score of 580 or higher. Scores from 500 to 579 generally need 10% down. Many lenders set higher minimums, so it helps to compare lenders.
How much is FHA mortgage insurance in 2026?
FHA charges an upfront premium of 1.75% of the base loan, usually financed, plus an annual premium paid monthly. For most 30-year loans with less than 5% down and a base loan of $726,200 or less, the annual rate is 0.55%.
Can I use an FHA loan for a duplex in Hendersonville?
Yes. FHA loans can finance 2-4 unit properties as long as you live in one of the units as your primary residence. The 2026 Sumner County limit for a two-unit property is $1,317,650.
Can FHA mortgage insurance be removed?
If you put less than 10% down, annual FHA mortgage insurance generally lasts for the life of the loan. With 10% or more down, it typically ends after 11 years. Many borrowers refinance into a conventional loan to drop it.
Compare FHA and Conventional Options in Sumner County
Call CFC Mortgage at (615) 357-7800 or visit www.hendersonvillemtg.com. We’re available 9 a.m. to 9 p.m., seven days a week, and we compare FHA, conventional, VA, and USDA options from multiple lenders so you can see your real payment.
About CFC Mortgage in Hendersonville
This guide was written by the team at CFC Mortgage — Hendersonville, part of Coastal Funding Corporation (NMLS 103035). As a mortgage broker, we compare loan programs from many lenders for buyers across Hendersonville, Sumner County, and Middle Tennessee. Our options include conventional, FHA, VA, USDA, jumbo, and DSCR investment loans.
Sources: HUD Mortgagee Letter 2025-23 (2026 FHA forward mortgage limits); HUD FHA mortgage limits for the Nashville-Davidson-Murfreesboro-Franklin MSA as compiled by third-party loan limit lookup sites; HUD Single Family Housing Policy Handbook 4000.1; HUD Mortgagee Letter 2023-05 (annual MIP); IRS draft 2026 Schedule A and Publication 936; Zeitlin Sotheby’s International Realty Q3 2026 Sumner County report (RealTracs data); Mortgage News Daily, November 4, 2026. Example payments are illustrative and are not quotes.
Coastal Funding Corporation (CFC Mortgage — Hendersonville) | NMLS 103035 | 534 S. Navy Blvd, Pensacola, FL 32507 | (615) 357-7800 | www.hendersonvillemtg.com. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property eligibility. Rates, terms, and programs are subject to change without notice. Rate and market figures cited are third-party data as of the dates shown and are not quotes or offers from Coastal Funding Corporation. Primary-residence loans offered in FL, SC, and TN; DSCR loans available nationwide.