What is the 2026 FHA loan limit in Chattanooga?

$541,287 for a one-unit home in Hamilton County, the national FHA floor.

Does Chattanooga have down payment assistance?

Yes. The city offers up to $15,000 as a deferred 0% loan for eligible first-time buyers, which can be combined with THDA's Great Choice Plus.

Can I buy a Chattanooga home to rent short-term?

Only as a homestay you live in, or in the commercial zones that allow absentee short-term rentals. Otherwise, plan on a long-term rental.

Is Nick Grisanti licensed to lend in Chattanooga?

Yes. Nick is licensed as a Mortgage Loan Originator in Tennessee (TN #2719729), and loans are originated through C2 Financial Corporation, NMLS #135622.

Hamilton County · Tennessee

Mortgages in Chattanooga.

Nick Grisanti

Mortgage Loan Originator · NMLS #2719729FL #LO138662 · OH #MLO-OH.2719729 · TN #2719729 · TX SML licensedC2 Financial Corporation · NMLS #135622

Purchase, refinance and investment property loans in Chattanooga and Hamilton County, from 100+ wholesale lenders through C2 Financial Corporation.

$541,2872026 FHA limit, Hamilton County
100+Wholesale lenders

Step 1 of 4

What can we help you with?

A few details

Credit score, roughly

When are you hoping to close?

Main income type

First home you've bought?

Monthly debt payments (car, student, cards)

Served in the military? (optional)

How will it be rented?

How do you know the rent?

Expected gross rent per month

Prepayment penalty you could accept

How would you document income?

Renovation budget

Value after renovation (estimate)

Plan when it's done

The lot

Lot value (estimate)

Construction budget

Plans and permits

Who is building it?

When it's finished, you'll

Buying in your name or an LLC?

Projects in the last 3 years

Include taxes and insurance in the monthly payment?

Loan amount, if you know it

2026

Chattanooga by the numbers

Chattanooga's prices fit under the national FHA floor, and the city adds its own down payment assistance on top of the state programs.

FHA · 1 unit · Hamilton County $541,287 The national floor, which covers most purchase prices here.

Conforming · 1 unit $832,750 Loans above this are jumbo loans.

Median sale price $375,000 City of Chattanooga, three months ending September 2026 (Redfin).

Property tax $3.45 Per $100 of assessed value for tax year 2025: City $1.93 plus Hamilton County $1.52. Homes are assessed at 25% of appraised value.

Income tax None on wages Tennessee has no state income tax on wages, which helps your debt-to-income ratio.

Closing $0.37 + $0.115 Tennessee transfer tax is $0.37 per $100 of price; mortgage tax is $0.115 per $100 of the loan above the first $2,000.

Check your county's FHA limit with HUD's lookup. Two- to four-unit properties have higher limits. Nick confirms the current figures for your county before every rate lock.

Local rules and costs

What buyers in Chattanooga should know

First-time buyers Up to $15,000 from the city Chattanooga's program offers up to $15,000 as a 0% deferred loan (up to $21,000 combined with THDA) for first-time buyers at or under 120% of area income, buying in city limits at $400,000 or less. City DPA → Short-term rentals Absentee STRs in commercial zones only Every host needs a yearly STVR certificate. Non-owner-occupied rentals are allowed only in certain commercial zones; homestays are allowed within the homestay overlay. City STR rules → First-time buyers THDA Great Choice Tennessee Housing Development Agency's 30-year fixed loan (640+ credit, income and price limits by county), with down payment help of $6,000 to $15,000 through Great Choice Plus. THDA programs → Investors Rental property in Chattanooga A DSCR loan qualifies on the property's rent rather than your personal income, which suits investors who own several properties or live outside Chattanooga. How DSCR works →

About Chattanooga

Living and buying in Chattanooga

Chattanooga's largest employers include BlueCross BlueShield of Tennessee, Erlanger Health, Volkswagen's assembly plant, the Tennessee Valley Authority and Unum.

Buyers look at older homes in North Chattanooga and St. Elmo, suburban Hixson and East Brainerd, and the separate mountain towns of Signal Mountain and Lookout Mountain.

Neighborhoods

Where buyers look

North Chattanooga
St. Elmo
Hixson
East Brainerd
Signal Mountain
Red Bank

Schools: Hamilton County Schools. Check the district for any specific address before you buy.

Loans in Chattanooga

Loan programs

Most common Conventional Fannie Mae and Freddie Mac loans for primary homes, second homes and investment property. Conventional loans → Flexible credit FHA Low down payment for a Chattanooga home you'll live in, with local down payment help. FHA in Chattanooga → Veterans VA For eligible veterans, service members and surviving spouses. VA loans → Higher prices Jumbo Loan amounts above the conforming limit. Jumbo loans → Investors DSCR Buy or refinance a Chattanooga rental on the property's rental income. DSCR in Chattanooga → Self-employed Bank statement For self-employed borrowers whose tax returns understate their income. Bank statement loans → Home equity HELOC and cash-out Borrow against your home's equity with a line of credit or a cash-out refinance. Compare options →

Not every lender offers every program in every state, and all loans are subject to credit approval and program guidelines. Nick compares 100+ wholesale lenders through C2 Financial Corporation to find the programs that fit your scenario.

Questions

Chattanooga mortgage FAQ

What is the 2026 FHA loan limit in Chattanooga?: $541,287 for a one-unit home in Hamilton County, the national FHA floor.
Does Chattanooga have down payment assistance?: Yes. The city offers up to $15,000 as a deferred 0% loan for eligible first-time buyers, which can be combined with THDA's Great Choice Plus.
Can I buy a Chattanooga home to rent short-term?: Only as a homestay you live in, or in the commercial zones that allow absentee short-term rentals. Otherwise, plan on a long-term rental.
Is Nick Grisanti licensed to lend in Chattanooga?: Yes. Nick is licensed as a Mortgage Loan Originator in Tennessee (TN #2719729), and loans are originated through C2 Financial Corporation, NMLS #135622.