FHA Loans in Memphis, Tennessee

FHA in the Memphis market

Memphis has lower median home prices than Nashville or Knoxville, which means FHA loan limits cover virtually all residential purchases in Shelby County. The 2026 FHA single-family limit of $524,225 is well above the typical Memphis purchase price, making FHA a viable option across the entire market.

Memphis also has a large first-time buyer population and a significant share of buyers who benefit from FHA's flexible credit requirements. The city's history of economic challenges has left many buyers with credit profiles that benefit from FHA's more forgiving standards compared to conventional financing.

FHA property considerations in Memphis

Memphis has a significant stock of older housing, particularly in neighborhoods like Midtown, South Memphis, Frayser, and Whitehaven. FHA appraisals require the property to meet FHA Minimum Property Requirements (MPRs), which can be a challenge with older homes that have deferred maintenance, lead paint issues, or structural concerns.

Buyers purchasing older Memphis homes with FHA financing should budget for potential repair requirements identified during the appraisal. In some cases, sellers will negotiate repairs; in others, buyers may need to consider an FHA 203(k) rehabilitation loan or switch to a conventional program with less stringent property requirements.

Down payment assistance in Memphis

THDA Great Choice programs are available in Shelby County and can be layered with FHA financing. Memphis also has local homebuyer assistance programs through the City of Memphis and Shelby County that may provide additional down payment or closing cost assistance for qualifying buyers. Availability and terms change — Morgan Hardy can identify current programs for your situation.