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For First Time Buyers

Down Payment Assistance

Memphis And Shelby County, Tennessee

Most buyers we meet do not know how much help is sitting on the table. These are the state and city programs that put money toward a down payment in Memphis, written plainly, with the source for every number.

Tennessee Housing Development Agency

The Great Choice Home Loan

THDA is the state housing agency. Great Choice is its 30 year fixed rate mortgage for first time buyers, and for repeat buyers in targeted counties and designated areas. Income and purchase price limits are set county by county and change, so check the current chart before you count on a number.

Term

30 Year Fixed

Minimum Credit Score

640 For Everyone On The Loan

Loan Types

FHA, USDA-RD, VA, Conventional

Required

Homebuyer Education Class

Great Choice on thda.org[ ↗ ]

The Assistance Itself

Great Choice Plus

Great Choice Plus is a second loan that covers the down payment and closing costs. You take it alongside a Great Choice first mortgage, and you pick one of two shapes.

Deferred Option

Up to $6,000 or up to $10,000

  • Forgivable second mortgage at a 0% interest rate.
  • No monthly payment. Forgiven at the end of the 10 year term.
  • Due in full if the home is sold or refinanced before the term ends.

Amortizing Option

Up to 5% of the sales price, $15,000 maximum

  • Second mortgage at the same interest rate as the first mortgage.
  • Repaid with a monthly payment over a 30 year term.
  • Larger assistance amount in exchange for the payment.
Down payment assistance on thda.org[ ↗ ]

City Of Memphis

The Office Of Down Payment Assistance

The city runs its own assistance separate from the state, including programs written specifically for police officers, firefighters and school employees. Amounts and available funding change, so call the office to confirm what is open.

  1. 01Citywide DPAMaximum income limit is 80% area median income, and may purchase anywhere in the city limits.
  2. 02Memphis Housing Authority DPAFor current or recently displaced MHA residents. Maximum income limit is 80% area median income, may purchase anywhere in the city limits.
  3. 03Homebuyer Program Incentive Citizens (HIPC)Maximum income limit is 200% area median income. Must purchase within 15 designated areas within the city.
  4. 04Homebuyer Program Incentive Police (HIPP)Must be a uniformed officer with the City of Memphis Police Department for a minimum of one year. No income limit, may purchase anywhere in the city limits.
  5. 05Homebuyer Program Incentive Firemen (HIPF)Must be a front line firefighter with the City of Memphis Fire Department for a minimum of one year. No income limit, may purchase anywhere in the city limits.
  6. 06Homebuyer Incentive Program Memphis Shelby County Schools (MSCS)Must be a full time Memphis Shelby County Schools employee for a minimum of two years. No income limit, may purchase anywhere in the city limits.

Office of Down Payment Assistance, 901-636-7300, Monday through Friday, 8:00 a.m. to 5:00 p.m.

Down payment assistance on memphistn.gov[ ↗ ]

Before You Rely On Any Of This

LuxeForge Developments builds homes. We are not a lender and this page is not financial advice.

Every figure here is quoted from THDA and the City of Memphis as published, and every program is linked back to its source. Terms, income limits and available funding change. Confirm the current details with THDA, with the city, or with an approved lender before you make a decision on them.

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