FHA Loans in Clarksville, Tennessee

FHA in Clarksville's military market

Fort Campbell's presence means VA loans dominate the Clarksville purchase market. However, a significant portion of the Clarksville population is not VA-eligible: civilian employees of Fort Campbell, defense contractors, family members of service members, and the broader Montgomery County civilian population all represent FHA's market.

FHA is also relevant for veterans who have used their VA entitlement on a prior property that hasn't been sold, or who have had their entitlement reduced by a prior VA loan default. In these cases, FHA may be the best low-down-payment option available.

FHA loan limits in Montgomery County

For 2026, the FHA single-family loan limit for Montgomery County is $524,225. Clarksville's median home prices are well below this limit, meaning FHA covers virtually all purchases in the market.

Clarksville's price range — generally lower than Nashville and comparable to Knoxville — makes FHA's 3.5% down payment requirement achievable for most buyers. The total cash needed at closing (down payment plus closing costs) is typically lower in Clarksville than in higher-priced Tennessee markets.

FHA vs. VA in Clarksville

For buyers with VA eligibility, VA is almost always the better choice in Clarksville. VA requires no down payment (vs. FHA's 3.5%), has no monthly mortgage insurance (FHA has MIP for the life of the loan for most borrowers), and typically offers lower rates. The only scenario where FHA might be preferable over VA is if the buyer has exhausted their entitlement or has a specific situation where VA financing isn't available for the property type.