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First-Time Homebuyer Programs in Franklin, TN

Population 90,226 · Updated November 2026

Estimated Median Home Price

$265,000

Moderate

Based on Tennessee market data and city size. Actual prices vary by neighborhood.

Affordability Snapshot

Est. Monthly Payment
$1,861/mo

P&I $1,616 + Tax $157 + Ins $88

Property Tax Rate
0.71%

$1,882/yr in Tennessee

FHA Loan Limit
$498K

Standard limit in Tennessee

Down Payment Breakdown

For a $265,000 home in Franklin:

FHA Loan (3.5% down)

Min. 580 credit score

$9,275

Conventional (5% down)

Min. 620 credit score

$13,250

VA / USDA (0% down)

Veterans / eligible rural areas

$0

Plus closing costs of $5,300 - $13,250 (2-5%)

Tennessee Homebuyer Programs

Great Choice Home Loan

Below-Market Rate Mortgage + DPA
Below-market rate + up to $7,500 DPA

Tennessee Housing Development Agency offers below-market rate mortgages with up to $7,500 in forgivable DPA.

Federal Loan Programs

ProgramDown PaymentCredit ScoreEligibility
FHA3.5%580+ (3.5%) or 500+ (10%)All buyers
Conventional3-5%620+All buyers
VA0%No minimum (most lenders want 620+)Veterans, active military, surviving spouses
USDA0%640+ (most lenders)Eligible rural/suburban areas, income limits

FHA loan limit in Tennessee: $498,257. Rates and requirements as of 2026.

7 Steps to Buying Your First Home in Franklin

1

Check your credit score

FHA requires 580+ for 3.5% down; conventional needs 620+. Free annual reports at AnnualCreditReport.com. Franklin has 2 HUD-approved counseling agencies that offer free credit counseling.

2

Get pre-approved (not just pre-qualified)

Pre-approval involves a full credit check, income verification, and asset documentation. It tells sellers you are a serious buyer with confirmed financing. Pre-qualification is just an informal estimate.

3

Apply for Tennessee assistance programs

Tennessee offers 1 homebuyer program that can reduce your down payment or closing costs. Apply before you start house-hunting — some programs take 2-4 weeks to process.

4

Find a buyer's agent

A buyer's agent represents your interests and is typically paid by the seller. Look for agents who know the Franklin market and have experience with first-time buyers and DPA programs.

5

House hunt with your budget

With a median price of $265,000 in Franklin, your total monthly housing cost would be approximately $1,861/month. Most lenders recommend keeping housing costs below 28% of gross income.

6

Make an offer and get an inspection

Your agent helps structure the offer. Always get a home inspection ($300-$500) — it can reveal costly problems. In competitive markets, resist pressure to waive the inspection contingency.

7

Close on your home

Closing typically takes 30-45 days after an accepted offer. Budget $5,300-$13,250 for closing costs. Review all documents carefully at closing — you have 3 days to review the Closing Disclosure before signing.

HUD-Approved Housing Counselors in Franklin

Approximately 2 agencies offer free homebuyer education and credit counseling

First-Time Homebuyer Facts

Median Buyer Age

36 years

National Association of Realtors, 2025

Avg. Down Payment

8%

National Association of Realtors, 2025

Use DPA Programs

40% of first-time buyers

National Association of Realtors, 2024

Closing Costs

2-5% of purchase price

Consumer Financial Protection Bureau

Frequently Asked Questions About Buying in Franklin

What first-time homebuyer programs are available in Franklin, TN?
Tennessee offers 1 state-level homebuyer assistance program: Great Choice Home Loan. In addition, federal programs including FHA (3.5% down), VA (0% down for veterans), and USDA (0% down in eligible rural areas) are available to Franklin buyers.
How much do I need for a down payment on a home in Franklin?
Based on the estimated median home price of $265,000 in Franklin: an FHA loan requires $9,275 (3.5%), a conventional loan requires $13,250 (5%), and VA/USDA loans require $0 down. About 40% of first-time buyers use down payment assistance programs to reduce these amounts.
What is the estimated monthly mortgage payment in Franklin?
For the estimated median home price of $265,000 in Franklin with an FHA loan (3.5% down, 6.5% interest rate, 30-year term), the estimated principal and interest payment is approximately $1,616/month. Add property taxes (0.71% in Tennessee), homeowner's insurance, and mortgage insurance for the full monthly cost.
What credit score do I need to buy a home in Franklin?
FHA loans require a minimum 580 credit score for the 3.5% down payment option (or 500 with 10% down). Conventional loans typically require 620 or higher. Higher scores qualify for better interest rates. Free credit counseling is available through the 2 HUD-approved housing counseling agencies in the Franklin area.
What are closing costs for buying a home in Franklin, TN?
Closing costs in Franklin typically range from $5,300 to $13,250 (2-5% of the purchase price). These include lender fees, title insurance, appraisal, recording fees, and prepaid property taxes. Some Tennessee DPA programs also cover closing costs.

Homebuyer Programs in Other Tennessee Cities

Nashville$350,000
Moderate
Memphis$330,000
Moderate
Knoxville$330,000
Moderate
Chattanooga$275,000
Moderate
Clarksville$320,000
Moderate
Murfreesboro$325,000
Moderate
Johnson City$260,000
Moderate
Jackson$245,000
Affordable
Back to Franklin overviewAll homebuyer programsFranklin safety data

Home prices are population-based estimates and may not reflect current market conditions. Program details, eligibility requirements, and amounts are approximate and subject to change. Contact your state housing finance agency or a HUD-approved counselor for current information. This page is for informational purposes only and does not constitute financial advice.

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