In 2026, the FHA loan limit in Davidson County (Nashville) and Williamson County (Franklin and Brentwood) is $1,029,250 for a one-unit home. That is the biggest FHA loan you can get there. With a credit score of 580 or higher, you can put as little as 3.5% down. With a score from 500 to 579, you need at least 10% down. FHA loans also have mortgage insurance: a one-time fee of 1.75% of the loan, plus a yearly fee that is 0.55% for most 30-year loans with less than 5% down.
FHA loans are home loans insured by the Federal Housing Administration, which is part of HUD. Because the government insures the loan, lenders can accept a smaller down payment and lower credit scores. That makes FHA a favorite for first-time buyers in Nashville, Franklin, and Brentwood.
HUD sets FHA limits by county each year. Davidson and Williamson counties are both in the Nashville metro area, so they share the same limits.
| Type of home | 2026 FHA limit (Davidson & Williamson) | Lowest FHA limit in the U.S. |
|---|---|---|
| 1 unit (most houses) | $1,029,250 | $541,287 |
| 2 units | $1,317,650 | $693,050 |
| 3 units | $1,592,700 | $837,700 |
| 4 units | $1,979,350 | $1,041,125 |
These limits are for FHA case numbers given on or after January 1, 2026. In our area, the FHA limit is the same as the conforming (Fannie Mae and Freddie Mac) limit.
| Your credit score | Smallest down payment |
|---|---|
| 580 or higher | 3.5% |
| 500 to 579 | 10% |
| Below 500 | Not eligible for FHA |
These are HUD's minimums. Some lenders ask for a higher score. That is one reason it pays to compare lenders.
Every FHA loan has mortgage insurance. It protects the lender, not you. There are two parts:
How long does it last? If you put down 10% or more, the yearly fee ends after 11 years. If you put down less than 10%, it lasts for the life of the loan. Many people later refinance into a conventional loan to drop it.
| Item | Amount |
|---|---|
| Home price | $400,000 |
| Down payment (3.5%) | $14,000 |
| Base loan | $386,000 |
| Upfront mortgage insurance (1.75%) | $6,755 |
| Yearly mortgage insurance (0.55%) | $2,123 a year, or about $177 a month |
This example is just math to show how the fees work. It leaves out your rate, taxes, insurance, and closing costs. It is not a loan offer.
Often, yes. The Tennessee Housing Development Agency (THDA) offers loans that can sit on top of an FHA loan. See Tennessee first-time homebuyer programs to learn more.
In Davidson County (Nashville), the 2026 FHA limit is $1,029,250 for a one-unit home.
Yes. Franklin and Brentwood are in Williamson County. The 2026 FHA limit there is also $1,029,250 for a one-unit home.
HUD's minimum is 500. With a score of 580 or higher, you can put as little as 3.5% down. With a score from 500 to 579, you need at least 10% down. Some lenders set a higher minimum.
There is an upfront fee of 1.75% of the loan, which most people add to the loan. There is also a yearly fee. For most 30-year FHA loans with less than 5% down, the yearly fee is 0.55% of the loan.
If you put down 10% or more, the yearly fee ends after 11 years. If you put down less than 10%, it lasts for the life of the loan unless you refinance or pay off the loan.
HUD says that for case numbers given on or after January 1, 2027, lenders can also use the FICO 10T and VantageScore 4.0 credit scores. The minimum score levels stay the same.
Wondering if FHA is the right fit for a home in Nashville, Franklin, or Brentwood? I can compare FHA with other loans using your real numbers. Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Figures checked October 11, 2026. Limits and fees can change. Examples are for illustration only and are not a loan offer.
