TERMS AGREEMENT

                                                                       EXECUTION

                       FIRST HORIZON ASSET SECURITIES INC.
                MORTGAGE PASS-THROUGH CERTIFICATES SERIES 2005-8

                                 TERMS AGREEMENT
                                 ---------------
                           (to Underwriting Agreement,
                             dated November 20, 2003
                    between the Company and the Underwriter)


First Horizon Asset Securities Inc.                           Memphis, Tennessee
4000 Horizon Way                                               December 22, 2005
Irving, Texas 75063

      FTN Financial Capital Markets, a division of First Tennessee Bank National
Association (the "Underwriter") agrees, subject to the terms and provisions
herein and of the captioned Underwriting Agreement (the "Underwriting
Agreement"), to purchase such Classes of First Horizon Mortgage Pass-Through
Trust, Series 2005-8 Certificates (the "Series 2005-8 Certificates") specified
in Section 2(a) hereof (the "Offered Certificates"). This letter supplements and
modifies the Underwriting Agreement solely as it relates to the purchase and
sale of the Offered Certificates described below. The Series 2005-8 Certificates
are registered with the Securities and Exchange Commission by means of an
effective Registration Statement (No. 333-125158). Capitalized terms used and
not defined herein have the meanings given them in the Underwriting Agreement.

      Section 1. The Mortgage Pools: The Series 2005-8 Certificates shall
evidence the entire beneficial ownership interest in two pools (the "Mortgage
Pools") of conventional, fixed rate, first lien, fully amortizing, one- to
four-family residential mortgage loans (the "Mortgage Loans") having the
following characteristics as of December 1, 2005 (the "Cut-off Date"):

            (a) Aggregate Principal Amount of the Mortgage Pools: Approximately
      $310,975,601 aggregate principal balance as of the Cut-off Date, subject
      to an upward or downward variance of up to 5%, the precise aggregate
      principal balance to be determined by the Company.

            (b) Original Terms to Maturity: The original term to maturity of
      each Mortgage Loan included in Pool I shall be between 240 and 360 months.
      The original term to maturity of each Mortgage Loan in Pool I