For buyers with solid credit and stable income, a Conventional Loan is often the most cost-effective path to homeownership in Tennessee. Most of the state’s 95 counties follow the $832,750 national conforming baseline. But two counties stand out: Davidson County (Nashville) and Williamson County (Franklin, Brentwood, Thompson’s Station) carry the elevated $1,029,250 high-cost conforming limit, reflecting the extraordinary appreciation in the Nashville MSA and giving buyers in Tennessee’s most competitive market significantly expanded
conventional financing access.
THDA’s HFA Advantage program pairs directly with conventional financing, providing repeat buyers access to reduced mortgage insurance rates and DPA.
620; 700+ for the best rates
As low as 3% for first-time buyers; 5% for repeat buyers; 20% eliminates PMI
Generally up to 45%
$832,750 in most TN counties; $1,029,250 in Davidson and Williamson counties (2026)
Primary residences, second homes, and investment properties
Documented, verifiable income required
Most Counties ($832,750): The vast majority of Tennessee’s 95 counties follow the national baseline, including Shelby (Memphis), Knox (Knoxville), Hamilton (Chattanooga), Montgomery (Clarksville/Fort Campbell), Sullivan (Tri-Cities), Rutherford (Murfreesboro), and most smaller and rural counties.
Davidson County ($1,029,250): Nashville and all communities within Davidson County carry Tennessee’s high-cost conforming limit — nearly $200,000 above the national baseline. This is one of the highest conforming limits in the Southeast.
Williamson County ($1,029,250): Franklin, Brentwood, Thompson’s Station, and all communities within Williamson County carry the same elevated limit. Williamson County’s consistently high median home prices pushed it to the high-cost tier.
Note: Additional counties in the Nashville MSA may also carry elevated limits. Your Bookspan Baker loan officer can confirm your specific county’s current limit.
THDA’s HFA Advantage program:
Available to repeat buyers as well as first-time buyers
Requires only 3% down
Provides reduced mortgage insurance rates vs. standard conventional PMI
Can be combined with HFA Advantage Plus DPA (up to $15,000
amortizing or $6,000 deferred)
Income limits apply by county; minimum 640 credit score
| Feature | Conventional Loan | FHA Loan |
|---|---|---|
| Minimum Credit Score |
620 |
500 (580 for 3.5% down) |
|
Minimum Down Payment |
3% (first-time buyers) |
3.5% (score 580+) |
|
Mortgage Insurance |
PMI; removable at 20% equity |
MIP; lifetime in most cases |
|
Upfront Insurance Fee |
None |
1.75% UFMIP |
|
Investment Properties |
Yes |
No |
| Most TN Counties Limit | $832,750 | $541,28 |
| Nashville MSA Limit | $1,029,250 | $1,029,250 |
$1,029,250 — one of the highest conforming limits in the Southeast, reflecting Nashville’s strong appreciation.
$1,029,250 — the same high-cost limit as Davidson County.
$832,750 — the national baseline. Applies to Knox (Knoxville), Hamilton (Chattanooga), Shelby (Memphis), and Montgomery
(Clarksville).
Yes. THDA’s HFA Advantage program is available to repeat buyers. It provides reduced MI rates and access to DPA.
Yes. Conventional Loans support second home and investment property purchases. For Sevier County and East Tennessee cabin/STR properties, conventional financing is the primary option.
