Knoxville FHA Loan Rates, Closing Costs & Stats

KNOXVILLE, TN

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Knoxville's 166 lenders originated 3,117 FHA loans during 2024. The total origination value was $888,325,000, with an average FHA loan value of $284,994.

    Knoxville FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Knoxville averaged 0.06% for the week of 2025-06-20, compared to the national average (all FHA variants) of 0% for the same period.

    Knoxville's average FHA mortgage closing costs are $8,409.

    The average rate for the prior week (2025-06-13) was 6.64% and one month ago for the week of 2025-05-16, the average rate was 6.51%.

    The average rate one year ago was 6.86%.

    For refis of the same type during the week of 2025-06-20, the average rate was 0.11%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Knoxville FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Knoxville level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    MORTGAGE INVESTORS GROUP, INC. 416 6.40% $10,837
    UNITED WHOLESALE MORTGAGE, LLC 307 6.13% $13,506
    QUICKEN LOANS, LLC 274 6.27% $11,736
    DHI MORTGAGE COMPANY, LTD. 139 6.34% $8,940
    FIRST COMMUNITY MORTGAGE, INC. 108 6.17% $11,409
    MOVEMENT MORTGAGE, LLC 98 6.62% $12,105
    FREEDOM MORTGAGE CORPORATION 77 6.42% $12,064
    STOCKTON MORTGAGE CORPORATION 70 6.51% $11,932
    PENNYMAC LOAN SERVICES, LLC 68 6.00% $12,272
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 65 6.52% $12,175
    AMERICAN PACIFIC MORTGAGE CORPORATION 56 6.56% $14,035
    CMG MORTGAGE, INC. 56 6.50% $12,154
    CROSSCOUNTRY MORTGAGE, LLC 44 6.39% $13,500
    Equity Prime Mortgage LLC 43 6.88% $12,453
    CARDINAL FINANCIAL 43 6.61% $14,384
    NEWREZ LLC 42 6.26% $13,369
    LOANDEPOT.COM, LLC 42 6.50% $11,020
    AMERICAN FINANCIAL NETWORK, INC. 41 6.46% $12,183
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 38 6.36% $10,107
    AMERICAN FINANCIAL RESOURCES, INC. 35 6.48% $12,153
    BROKER SOLUTIONS, INC. 32 6.75% $12,482
    HOMESIDE FINANCIAL, LLC 26 6.63% $14,518
    Carrington Mortgage Services, LLC 25 6.32% $13,529
    MUTUAL OF OMAHA MORTGAGE, INC. 22 6.89% $15,580
    LAKEVIEW LOAN SERVICING, LLC 22 6.40% $7,895
    RELIANCE FIRST CAPITAL, LLC 20 6.59% $12,916
    Mr. Cooper ( Nationstar Mortgage ) 20 6.53% $13,199
    NFM, INC. 18 6.75% $14,446
    Gateway First Bank 16 6.97% $10,837
    Century Mortgage Company DBA Century Lending Company 15 6.21% $14,465
    MID AMERICA MORTGAGE, INC. 15 6.79% $7,672
    SUN WEST MORTGAGE COMPANY, INC. 14 6.07% $15,777
    AMERISAVE MORTGAGE CORPORATION 14 6.02% $14,756
    FirstBank 14 6.44% $10,661
    UNION HOME MORTGAGE CORP. 14 6.13% $11,997
    Regions Bank 13 6.20% $11,079
    Wolfe Financial, Inc 13 6.60% $12,859
    LOANPAL, LLC 13 5.66% $13,347
    ISERVE RESIDENTIAL LENDING, LLC 12 6.50% $20,533
    CANOPY MORTGAGE, LLC 12 6.17% $18,231
    Flagstar Bank, FSB 12 6.12% $10,529
    AmeriHome Mortgage Company, LLC 11 6.59% $8,496
    Nations Lending Corporation 11 6.74% $11,601
    Sierra Pacific Mortgage Company, Inc. 11 6.25% $11,534
    VILLAGE CAPITAL MORTGAGE 11 6.56% $6,689
    Countybank 11 6.78% $9,398
    EVERETT FINANCIAL, INC. 9 6.47% $12,068
    Pinnacle Bank 9 6.21% $11,487
    The Loan Store, Inc. 9 6.05% $14,687
    Mortgage Research Center, LLC 8 6.37% $7,793
    TOP FLITE FINANCIAL, INC. 8 6.55% $15,473
    PLAZA HOME MORTGAGE, INC. 8 6.79% $12,822
    VANDERBILT MORTGAGE AND FINANCE, INC. 8 6.14% $12,208
    MILEND, INC. 8 6.34% $14,726
    GUARANTEED RATE, INC. 8 6.48% $12,263
    EMM LOANS LLC 7 6.55% $10,719
    CHURCHILL MORTGAGE CORPORATION 7 6.86% $13,439
    PLANET HOME LENDING, LLC 7 6.16% $8,856
    ZILLOW HOME LOANS, LLC 6 6.60% $10,332
    Prosperity Home Mortgage, LLC 6 6.04% $13,986
    Plains Commerce Bank 6 6.27% $13,076
    U.S. Bank 6 6.54% $9,510
    Princeton Mortgage Corporation 5 5.85% $13,383
    LEADERONE FINANCIAL CORPORATION 5 6.77% $10,354
    AMERICAN FINANCING CORPORATION 5 5.67% $14,252
    Waterstone Mortgage Corporation 5 6.25% $13,430
    Renasant Bank 5 6.38% $11,222
    MORTGAGE SOLUTIONS OF COLORADO, LLC 5 6.95% $12,761
    United Community Bank 5 6.43% $9,178
    Truist 5 6.27% $8,227
    TOWNE MORTGAGE COMPANY 5 6.70% $11,899
    TJC Mortgage, Inc. 5 6.05% $14,641
    SUCCESS MORTGAGE PARTNERS, INC. 4 6.81% $11,236
    ABSOLUTE HOME MORTGAGE CORPORATION 4 6.66% $11,806
    First Horizon Bank 4 6.66% $9,553
    CALCON MUTUAL MORTGAGE LLC 4 6.72% $16,492
    HOMEBRIDGE FINANCIAL SERVICES, INC. 4 6.22% $6,133
    GENEVA FINANCIAL, LLC 3 6.88% $11,559
    Hometown Equity Mortgage, LLC 3 6.13% $11,965
    SmartBank 3 6.25% $7,927
    Total Media Management, LLC 3 6.62% $11,723
    HIGHLANDS RESIDENTIAL MORTGAGE, LTD. 3 6.58% $10,416
    FIRST COLONY MORTGAGE CORPORATION 3 6.63% $11,693
    JPMorgan Chase Bank 3 6.17% $11,950
    ROSS MORTGAGE CORPORATION 3 6.21% $14,356
    COMPASS MORTGAGE, INC. 3 6.46% $11,580
    FIRST ALLIANCE HOME MORTGAGE, LLC 3 5.88% $19,191
    BAY EQUITY LLC 3 6.67% $10,957
    NORTHERN MORTGAGE SERVICES, LLC 3 6.41% $13,377
    LADERA LENDING, INC. 3 6.04% $11,480
    Paramount Residential Mortgage Group, Inc. 3 5.75% $15,504
    VERITAS FUNDING, LLC 3 6.38% $19,736
    The Federal Savings Bank 2 6.69% $15,740
    OCEANSIDE MORTGAGE COMPANY 2 6.12% $5,342
    CASTLE & COOKE MORTGAGE, LLC 2 7.25% $8,794
    SOUTHWEST FUNDING, LP 2 7.00% $14,622
    Citizens Bank 2 7.19% $10,384
    LIBERTY HOME MORTGAGE CORPORATION 2 7.13% $17,063
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 2 6.81% $15,776
    MICHIGAN MUTUAL, INC. 2 6.13% $12,301
    BancorpSouth 2 5.56% $13,622
    S1L, Inc. 2 6.44% $14,913
    ENDEAVOR CAPITAL, LLC. 2 6.37% $8,123
    Wells Fargo Bank 2 6.63% $13,045
    FIRST HOME MORTGAGE CORPORATION 2 6.94% $12,066
    POLARIS HOME FUNDING CORP. 2 6.31% $9,893
    NATIONS DIRECT MORTGAGE, LLC 2 7.31% $12,992
    Barrington Bank & Trust Company, N.A. 2 7.25% $9,296
    NBKC BANK 2 5.94% $10,335
    NEW DAY FINANCIAL, LLC 2 7.56% $6,932
    THE MORTGAGE FIRM, INC. 1 6.63% $15,271
    ACOPIA, LLC 1 7.13% $17,476
    ALAMEDA MORTGAGE CORPORATION 1 6.99% $8,161
    Alcova Mortgage LLC 1 7.13% $11,950
    American Mortgage & Equity Consultants, Inc. 1 6.13% $12,776
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.38% $11,208
    Ameris Bank 1 6.13% $12,033
    AXIA FINANCIAL, LLC 1 6.63% $14,659
    Bank of America 1 6.38% $5,317
    Bank of Tennessee 1 5.63% $9,929
    BECKAM FUNDING CORP. 1 7.25% $14,419
    Capital City Home Loans, LLC 1 6.63% $14,080
    COMMUNITY MORTGAGE CORPORATION 1 5.75% $19,794
    DAS Acquisition Company, LLC 1 7.25% $9,887
    DATA MORTGAGE, INC. 1 6.25% $6,730
    EMBRACE HOME LOANS, INC. 1 5.25% $9,002
    Encompass Lending Group, LP 1 6.75% $8,575
    EVANSVILLE TEACHERS 1 5.75% $12,447
    Fifth Third Bank 1 6.50% $6,186
    First Citizens National Bank 1 5.50% $7,674
    FIRST INTEGRITY MORTGAGE SERVICES, INC. 1 6.63% $11,239
    First National Bank of Pennsylvania 1 5.63% $11,627
    First Palmetto Bank 1 7.25% $9,860
    FLAT BRANCH MORTGAGE, INC. 1 7.13% $9,405
    Franklin Loan Corporation 1 6.88% $15,393
    GERSHMAN INVESTMENT CORP. 1 5.63% $11,329
    GUILD MORTGAGE COMPANY 1 6.25% $10,937
    Home Mortgage Alliance Corp 1 6.99% $10,729
    Ixonia Bank 1 6.63% $12,848
    JMAC LENDING, INC. 1 5.75% $12,429
    JMJ FINANCIAL GROUP 1 6.75% $24,996
    J. VIRGIL, INC. 1 7.13% $9,470
    Meridian Bank Corporation 1 6.50% $9,137
    MLD MORTGAGE INC. 1 6.50% $7,410
    MORIA DEVELOPMENT, INC. 1 6.63% $9,507
    MORTGAGE FINANCIAL SERVICES, LLC 1 6.63% $14,238
    NATIONWIDE MORTGAGE BANKERS, INC. 1 6.75% $17,777
    PENTAGON FEDERAL CREDIT UNION 1 6.63% $6,819
    PHH Mortgage Corporation 1 6.49% $15,378
    Presidential Bank, FSB 1 5.63% $16,950
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.63% $11,590
    Residential Mortgage Solutions, Inc. 1 6.13% $7,399
    RUOFF MORTGAGE COMPANY, INC. 1 5.88% $9,366
    SeaTrust Mortgage Company 1 6.00% $8,594
    SOUTHERN TRUST MORTGAGE, LLC 1 7.13% $10,707
    SOUTHPOINT FINANCIAL SERVICES, INC. 1 6.25% $2,325
    SUMMIT FUNDING, INC. 1 6.50% $8,343
    T2 FINANCIAL LLC 1 6.25% $9,282
    Texana Bank 1 7.38% $16,995
    The First National Bank of Middle Tennessee 1 5.63% $11,469
    The Huntington National Bank 1 6.13% $19,769
    1ST SIGNATURE LENDING, LLC 1 6.50% $12,858
    The Union Bank Company 1 5.75% $14,247
    Union Savings Bank 1 6.00% $8,818
    VAN DYK MORTGAGE CORPORATION 1 7.50% $3,019
    Victorian Finance, LLC 1 7.63% $10,995

    The top Knoxville FHA lender as defined by loan originations is MORTGAGE INVESTORS GROUP, INC., with 416 FHA loans originated. Their average total fees are $10,837, which is $2,670 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Knoxville FHA lenders (with over 10 loans originated) are VILLAGE CAPITAL MORTGAGE ($6,689), MID AMERICA MORTGAGE, INC. ($7,672), LAKEVIEW LOAN SERVICING, LLC ($7,895), AmeriHome Mortgage Company, LLC ($8,496) and DHI MORTGAGE COMPANY, LTD. ($8,940).

    The lowest rate Knoxville FHA lenders (with over 10 loans originated) are LOANPAL, LLC (5.66%), PENNYMAC LOAN SERVICES, LLC (6.00%), AMERISAVE MORTGAGE CORPORATION (6.02%), SUN WEST MORTGAGE COMPANY, INC. (6.07%) and Flagstar Bank, FSB (6.12%).

    Knoxville FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    KNOXVILLE, TN ANDERSON 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN BLOUNT 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN CAMPBELL 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN KNOX 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN LOUDON 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN MORGAN 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN ROANE 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN UNION 2022 $420,680 $538,650 $651,050 $809,150
    KNOXVILLE, TN ANDERSON 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN BLOUNT 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN CAMPBELL 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN KNOX 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN LOUDON 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN MORGAN 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN ROANE 2023 $472,030 $604,400 $730,525 $907,900
    KNOXVILLE, TN UNION 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).