Shopping in Midtown Franklin and not sure if your mortgage will be jumbo or conventional? With central Franklin prices often ranging from the high six figures into the millions, it can come down to your down payment and the county loan limit. In a few minutes, you can learn how the 2025 limits work in Williamson County, what changes with jumbo vs. conforming loans, and how to plan your offer. Let’s dive in.
2025 loan limits in Williamson County
The Federal Housing Finance Agency sets a nationwide baseline conforming loan limit each year. For 2025, the single‑family baseline is $806,500, and counties with higher costs have higher caps. FHFA’s 2025 announcement explains how these limits work.
For Franklin buyers, the key number is the county limit. Williamson County’s 2025 conforming limit for a single‑family home is $989,000. If your financed amount goes above that figure, your loan is treated as jumbo. You can see the Tennessee county list in Bankrate’s summary.
Midtown Franklin prices and why it matters
Downtown and Midtown‑adjacent Franklin include historic homes, renovated properties, and high‑end new builds. Active listings and recent sales often fall between the high six figures and well over $1 million, which puts some purchases near or above the county limit. Local snapshots show this range across central Franklin, so your loan type often depends on how much you finance after your down payment. Explore current price patterns in this Downtown Franklin market snapshot.
Jumbo vs. conforming: what changes for you
Underwriting and qualification
Conforming loans meet Fannie Mae and Freddie Mac guidelines and stay at or below the county limit. Jumbo loans exceed the limit and are not eligible for purchase by the Enterprises. That shift usually means stronger credit, lower debt‑to‑income, more documented income, and larger liquid reserves for jumbo programs. Lender requirements vary, so compare offers from more than one lender. A quick overview of typical jumbo expectations is available from this jumbo loan guide.
Down payment and mortgage insurance
On conforming conventional loans, you will usually see private mortgage insurance (PMI) if you put less than 20 percent down. PMI can often be removed once you reach about 20 percent equity, as explained in Fannie Mae’s overview of PMI. Jumbo loans often require larger down payments or use different structures instead of standard PMI, depending on the lender and product.
Interest rate and closing costs
Historically, jumbo rates have carried a premium over conforming rates, although well‑qualified borrowers sometimes see similar pricing when markets are competitive. Closing costs and underwriting fees can be higher for jumbo loans. Market conditions and your profile drive the spread, as outlined in this summary of jumbo mortgage dynamics.
Process and timing
Jumbo approvals may take longer because lenders often verify assets and income more closely and may require more conservative appraisals. Not all local banks offer large jumbo programs, so it is smart to shop lenders that are active in both conforming and jumbo. You can use this jumbo loan guide as a reference for what to ask.
Quick Midtown scenarios
Below are simple examples using Williamson County’s 2025 limit of $989,000. Always verify current limits with your lender.
Example A — $1,100,000 purchase
- 20 percent down → loan is $880,000 → below $989,000 → typically conforming if you meet program rules.
- 10 percent down → loan is $990,000 → above $989,000 → jumbo.
Example B — $1,500,000 purchase
- Even with 20 percent down, the loan is $1,200,000 → jumbo.
Key takeaway: it is the financed amount, not just the price, that determines whether you cross the conforming cap.
Buyer checklist for Midtown Franklin
- Confirm the current Williamson County conforming limit with your lender or the FHFA announcement.
- Request side‑by‑side quotes for conforming and jumbo with the same purchase price and different down payments. Small adjustments can shift your loan type and your monthly payment. Use a lender that actively offers jumbos, like those described in this jumbo overview.
- Ask about minimum credit score, acceptable debt‑to‑income, required reserves, and documentation. Knowing these early helps you write a confident offer.
- Compare total cost, not just rate. For some buyers, a conforming loan with PMI can be cheaper month to month than a jumbo with a higher rate, even if PMI is temporary. See Fannie Mae’s PMI guide for how removal works.
Seller takeaways in Midtown Franklin
If your list price likely puts most buyers in jumbo territory, your buyer pool may skew toward well‑qualified purchasers or those with larger down payments. That can influence time on market and the structure of offers. Some sellers consider strategies that help buyers keep the financed amount within the conforming limit, but your pricing should reflect local comps and your goals. You can review central Franklin price context in this Downtown Franklin housing snapshot.
Ready to weigh your options with a local, concierge‑minded adviser who understands Midtown Franklin? Reach out to Tammi Weed for a tailored plan and lender introductions that fit your budget and timeline.
FAQs
How to tell if your Midtown Franklin mortgage will be jumbo
- Compare your financed amount to Williamson County’s conforming limit for the year. If it is higher, it is jumbo. You can verify current limits through the FHFA’s announcement page or your lender.
Are jumbo loans always more expensive than conventional loans?
- Not always. Jumbo pricing can be competitive for strong borrowers, but jumbos often require stricter documentation, more reserves, and can carry higher closing costs. See this overview of jumbo mortgage pricing.
Can you avoid mortgage insurance with a jumbo loan in Franklin?
- Many jumbo programs avoid standard PMI by requiring larger down payments or using alternative structures. Ask lenders about options for your scenario, as summarized in this jumbo loan guide.
Should Midtown Franklin sellers price below the conforming limit to reach more buyers?
- Staying under the county limit can broaden the conventional‑loan buyer pool, but pricing should reflect local comps, property condition, and your goals. Review central Franklin pricing patterns in this market snapshot.
