TERMS AGREEMENT

                                                                       EXECUTION

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

                                 TERMS AGREEMENT
                                 ---------------
                           (to Underwriting Agreement,
                               dated July 24, 2002
                    between the Company and the Underwriter)

First Horizon Asset Securities Inc.                            New York, New York
4000 Horizon Way                                               December 22, 2005
Irving, Texas 75063

      Bear, Stearns & Co. Inc. (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 II shall be
      180 months.

            Section 2. The Certificates: The Offered Certificates shall be
      issued as follows:

            (a) Classes: The Offered Certificates shall be issued with the
      following Class designations, interest rates and pr