FHA · Nashville

FHA Loans (Investor Angle) in Nashville, TN

Loan-size math and qualifying analysis for FHA financing on Nashville's $436k median home value. Strong fit.

Recommendation

Strong fit for Nashville.

Nashville medians ($436k) sit below FHA loan limits in most counties, and rental fit (54/100) makes house-hacking 2-4 unit FHA acquisition viable here.

Loan math · Nashville

Payment on Nashville's $436k median.

Median home value (Nashville)$436,355
Assumed LTV97%
Loan amount$421,083
Cash to close (down payment)$15,272
Assumed rate6.75%
Term30-year amortizing
Monthly P&I$2,731/mo
What it is

FHA financing — the mechanics.

A residential mortgage insured by the Federal Housing Administration. Low down-payment + flexible credit. Critically for investors: FHA loans are assumable — a new buyer can take over the original loan with the same rate and terms (subject to lender approval).

Original FHA: 580+ FICO, 3.5% down, owner-occupancy required at origination. Assumption: new buyer needs ~$500-1,500 fee + creditworthiness check + occupancy intent.

State context · Tennessee

How Tennessee law affects this loan.

Tennessee is landlord-friendly on landlord-tenant law. See full FHA in Tennessee breakdown.

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FAQ

Frequently asked.

What's the typical FHA loan size for a property in Nashville?

On Nashville's $436k median home value, a FHA loan at the standard 97% LTV would be approximately $421k, requiring $15k down.

What's the monthly payment on a typical FHA loan in Nashville?

Fully-amortizing 30-year payment on a $421k FHA loan at the typical rate of 6.75% would be approximately $3k/month, excluding taxes and insurance.

Is Nashville a good market for FHA financing?

Nashville medians ($436k) sit below FHA loan limits in most counties, and rental fit (54/100) makes house-hacking 2-4 unit FHA acquisition viable here.

What credit and reserves do FHA lenders require for Nashville properties?

Original FHA: 580+ FICO, 3.5% down, owner-occupancy required at origination. Assumption: new buyer needs ~$500-1,500 fee + creditworthiness check + occupancy intent.

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