The City of Memphis, through its Division of Housing and Community Development (HCD), offers financial assistance to its citizens through the Down Payment Assistance Program (DPA).

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City of Memphis Down Payment Assistance Programs

Financial Assistance for Homebuyers in Tennessee

The City of Memphis, through its Division of Housing and Community Development (HCD), offers financial assistance to its citizens through the Down Payment Assistance Program (DPA), to assist with meeting the financial requirements of purchasing a home. 

Available Assistance 
The City of Memphis offers a number of DPA programs, each of which may cater to different borrower needs: the Citywide program (CWDPA), Memphis Housing Authority program(MHA DPA), Section 8 Homeownership Assistance Program (SHAPE DPA), and the Targeted Area program (TADPA). 

Eligibility Requirements 
To qualify for any of the above programs, every applicant must meet the following requirements. 
• Must be a first-time homebuyer-no ownership interest in the last three years 
• Income may not exceed 80% AMI (a determined by HUD- see below) 
• Must complete HUD certified housing counseling 
• Must maintain the property as primary residence for 5-year affordability period 
• 2 nd lien placed on the property for 5 years, released if all terms are met 
• Minimum investment of 1% of sales price 
• Deferred payment loan, no monthly payments during 5-year affordability period 
• Property must pass required inspection prior to submitting file to DPA Department 
• Maximum sales price is $189,000 for an existing home, and $243,000 for new constructions 
• Minimum of lessor of $500 or 1% of sales price available in savings, checking accounts 

Income Limits 
1-person household: $38,500 
2-person household: $44,000 
3-person household: $49,500 
4-person household: $54,950 
5-person household: $59,350 
6-person household: $63,750 
7-person household: $68,150 
8-person household: $72,550 

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but states and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.         

Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information.     

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Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Tennessee

The City of Clarksville’s Office of Housing and Community Development established the First Time Home-Buyers Program, which is designed to help income-eligible applicants with down payment and closing cost assistance to purchase their first home within the City of Clarksville. 

The City of Memphis, through its Division of Housing and Community Development (HCD), offers financial assistance to its citizens through the Down Payment Assistance Program (DPA).

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