Only 3.5% Down Payment Required
On a $250,000 home in Knoxville, that’s just $8,750 out of pocket — versus $50,000 with a conventional 20% down loan. FHA puts homeownership within reach for real Knoxville families.
📍 FHA Home Loans · Knoxville, Tennessee
Buy a home in Knoxville
with as little as 3.5% down.
Keystone Mortgage is Knoxville’s trusted FHA lender. Whether you’re a first-time buyer or rebuilding your credit, an FHA loan may be your fastest path to homeownership in Tennessee.
Credit scores from 580
Only 3.5% down payment
Gift funds allowed
Fast local closings
Get My Free FHA Quote
Or call: (865) 909-0211
3.5%Min. Down Payment
580+Credit Score OK
LocalKnoxville Team
Why FHA?
FHA loans make homeownership accessible in Knoxville, TN.
FHA loans — backed by the Federal Housing Administration — are designed for buyers who may not qualify for conventional financing. Whether it’s your first home or you’re starting fresh, Keystone Mortgage will show you exactly how an FHA loan works for your situation.
Flexible Credit Score Requirements
FHA guidelines allow scores as low as 580 for the 3.5% down option. Even borrowers with past credit challenges — a medical bill, job loss, or divorce — may still qualify for a Knoxville FHA loan.
Gift Funds & Down Payment Assistance
Your entire down payment can come from a family gift. FHA also works alongside Tennessee down payment assistance programs — Keystone Mortgage knows which ones apply in Knox County.
FHA Streamline Refinance
Already have an FHA loan? A Streamline Refinance lets you lower your rate with minimal paperwork and no new appraisal in most cases — one of the easiest refinance options in Tennessee.
FHA 203(k) Renovation Loans
Want to buy a fixer-upper in Knoxville? The FHA 203(k) program rolls purchase price and renovation costs into one loan — great for older East Tennessee homes.
Local Knoxville Expertise
Keystone Mortgage isn’t an 800-number call center. We’re your Knoxville neighbors — we know the local market, the appraisal landscape, and how to close FHA loans on time in Knox County.
Do I Qualify?
FHA loan requirements in Tennessee — at a glance.
FHA has some of the most flexible qualifying standards of any loan program. Here’s what you need to know before we talk. Every situation is different — our team will review yours for free.
📋 Basic FHA Loan Requirements
Minimum Credit Score580 (for 3.5% down)
Down Payment3.5% of purchase price
Debt-to-Income RatioUp to 57% in some cases
Employment History2 years preferred
Property TypePrimary residence only
Mortgage InsuranceUpfront + annual MIP
💡 FHA vs. Conventional — Quick Comparison
Min. Down PaymentFHA: 3.5% · Conv: 3–20%
Min. Credit ScoreFHA: 580 · Conv: 620+
Gift Funds OK?FHA: Yes · Conv: Limited
Mortgage InsuranceFHA: Life of loan*
Seller ContributionsFHA: Up to 6%
Best ForLower credit / first-timers
*FHA MIP duration depends on loan term and LTV. Ask your Keystone Mortgage loan officer for a personalized comparison. Not all borrowers will qualify. Terms subject to change.
The Process
Your Knoxville FHA loan — from first call to closing day.
Getting an FHA loan in Knoxville doesn’t have to be complicated. Keystone Mortgage makes every step clear so you always know what’s happening and what comes next.
1
Free Consultation
Call us or fill out the form above. We’ll review your credit, income, and goals with no pressure and no cost.
2
Get Pre-Approved
We pull your full credit picture and issue a pre-approval letter so you can shop for Knoxville homes with confidence.
3
Find Your Home
Work with your agent to find the right home. We’ll coordinate and keep everything on track through inspection and appraisal.
4
Close & Move In
We guide you through underwriting, answer every question, and get you to the closing table — on time, every time.
Why Keystone Mortgage
Knoxville’s local FHA mortgage team — not a call center.
When you call Keystone Mortgage, you talk to a real person on your Knoxville team — someone who knows East Tennessee home prices, knows the appraisers, and knows how to close FHA loans without surprises.
Matt Padgett and the Keystone Mortgage team are proud to be Knoxville locals. We’ve helped families across Knox, Blount, Anderson, and Sevier counties achieve homeownership. We’re not a big bank — we’re your neighbors.
Licensed FHA lenders in Tennessee and Florida (NMLS #153790)
Direct access to your loan officer — not a phone queue
Knowledgeable in Tennessee down payment assistance programs
We work with first-time buyers, repeat buyers, and those rebuilding credit
Fast responses — most clients hear back within one business day
Equal Housing Lender — we serve every qualified borrower
Serving FHA borrowers across East Tennessee:
Knoxville
Maryville
Oak Ridge
Sevierville
Morristown
Lenoir City
Farragut
Clinton
Alcoa
Harriman
Jefferson City
Newport
All of East Tennessee
Ready to get started?
Call Matt Padgett and the Keystone Mortgage team today — or fill out our quick form above for a free FHA eligibility review.
(865) 909-0211 — Call NowCommon Questions
FHA loan questions — answered by your Knoxville team.
Still have questions about FHA loans in Knoxville? Here are the ones we hear most often. Don’t see yours? Call us at (865) 909-0211.
FHA guidelines allow credit scores as low as 580 for the 3.5% down payment option. Borrowers with scores between 500–579 may still qualify but will need a 10% down payment. Keystone Mortgage will review your full credit picture — including any extenuating circumstances — to find the best path forward for your situation in Knoxville.
FHA requires a minimum 3.5% down payment for borrowers with a 580+ credit score. On a $250,000 home in Knoxville, that’s just $8,750 — compared to $50,000 for a conventional 20% down loan. Your entire down payment can also come from a gift from a family member, or be combined with Tennessee down payment assistance programs.
FHA loan limits are set annually by HUD and vary by county. Contact Keystone Mortgage at (865) 909-0211 for the current Knox County FHA loan limit. We’ll also let you know how it compares to current home prices in Knoxville neighborhoods so you can plan your search accordingly.
Yes — the FHA 203(k) renovation loan lets you roll the purchase price AND the cost of repairs into a single mortgage. It’s a great option for buying older homes in Knoxville neighborhoods like North Knoxville, Fountain City, or South Knoxville where you can find real value in properties that need updating.
With a complete application and documentation, most FHA loans close in 30–45 days. Because Keystone Mortgage is a local Knoxville team with relationships throughout the community, we’re often able to move faster than big banks or national lenders. We’ll give you a realistic timeline from day one.
Yes. If you already have an FHA loan, you may qualify for an FHA Streamline Refinance — often requiring no new appraisal and minimal documentation. If you have a non-FHA loan, an FHA rate-and-term or cash-out refinance may also be an option. Keystone Mortgage will compare all available options for you.
