City of Memphis Down Payment Assistance Program

Open

City of Memphis – Division of Housing and Community Development, Office of Down Payment AssistanceTNFirst-Time Homeowner

Funding: Offers up to approximately 10 percent of the home sales price in assistance, with maximum awards in recent guidelines around 25000 dollars, delivered as a zero percent interest, deferred payment second loan that can be applied to down payment and closing costs and is forgiven or repaid based on compliance with occupancy and program rules.City of Memphis administered zero percent interest deferred second mortgage style assistance that provides up to 10 percent of the home sales price, capped around 25000 dollars, to cover down payment and closing costs for eligible buyers under citywide and targeted incentive tracks.RollingDeadline: Scope: Localstate

Updated: Dec 6, 2025

Summary

Memphis’s DPA office provides layered, citywide and incentive-based down payment and closing-cost assistance loans so eligible buyers can purchase homes within the city limits with far less upfront cash.

Benefits

down payment assistanceclosing cost assistance0% interestdeferred loansecond mortgagecity programworkforce housing

Who Can Apply

homebuyerfirst-time homebuyerlow-income homebuyerMemphis residenthousing voucher participantpublic safety employeeteacher

Eligible Locations

First time and other eligible homebuyers purchasing an owner occupied primary residence within the Memphis, Tennessee city limits who use an approved first mortgage from a participating DPA lender, meet program specific income limits and track criteria, complete HUD approved homebuyer education and satisfy property and inspection standards, including special options for Memphis Housing Authority residents, Housing Choice Voucher participants, public safety workers and school staff.

Eligibility

First-time buyers and other eligible purchasers buying within Memphis city limits who meet specific income limits (Citywide DPA typically ≤80% AMI; some incentive tracks allow up to 200% AMI), obtain an approved first mortgage from a DPA-participating lender, complete HUD-approved homebuyer education, and purchase an owner-occupied primary residence that meets program standards. Special tracks exist for Memphis Housing Authority residents, Housing Choice Voucher participants, public safety employees, and school staff.

Full Description

The City of Memphis Down Payment Assistance Program is a comprehensive local initiative that combines several funding streams and targeted incentives under one umbrella. Citywide DPA options serve low- and moderate-income first-time buyers earning up to about 80% of area median income, providing up to 10% of the sales price (capped at a program-specific maximum) in the form of a deferred second loan with no monthly payments and a five-year affordability period. Additional Homebuyer Incentive Programs (HIP) are tailored to citizens in designated neighborhoods, police officers, firefighters, and Memphis-Shelby County Schools employees; these may allow higher incomes, broader location choices, or specialized benefits while still offering significant assistance toward down payment and closing costs. All properties must be inside Memphis city limits (or in specified target areas), pass required inspections, and be used as primary residences. Applicants work through approved lenders, must satisfy HUD HOME underwriting guidelines, and complete at least eight hours of HUD-approved counseling. Over time, the deferred loans are forgiven or repaid based on whether buyers meet occupancy and compliance conditions, allowing Memphis to both stabilize neighborhoods and reward long-term residency.

Verification & Details

Status: Open

Source: memphistn.gov

Official source → memphistn.gov

Apply on official siteUpdated Dec 6, 2025

Recommended Resource

First-Time Homebuyer Starter Pack (2025 Edition)

A complete first-time homebuyer toolkit: 9 checklists, timelines, grant guidance, worksheets + editable Excel/Google Sheet budget & affordability calculator.

first-time homebuyerhomebuyer starter packhome buying checklistbudget templategoogle sheet budgetdown payment assistancehomeownership toolkitdigital downloadPDF workbookaffordability calculator

View digital guide Buy now

More statewide programs

Explore additional grants available throughout Tennessee that complement this opportunity.

Great Choice Home Loan – First-Time Homebuyers

Open

Tennessee Housing Development AgencyTNFirst-Time HomeownerTennessee Housing Development Agency 30 year fixed rate first mortgage product for first-time and certain repeat buyers, available with FHA, VA, USDA RD or conventional financing and designed to be paired with Great Choice Plus down payment assistance when needed.

Updated: Dec 6, 2025

THDA’s flagship Great Choice Home Loan offers a predictable 30-year fixed mortgage for Tennessee first-time buyers, often paired with down payment assistance to reduce cash-to-close.

Eligible for: Primarily first-time homebuyers (or buyers who have not owned in the past three years) who meet THDA income and purchase-price limits, quali…

Funding: Provides a predictable 30 year fixed rate mortgage platform that can be combined with Great Choice Plus second loan assistance covering up to roughly 5 percent of the purchase price, but the first mortgage itself does not have a single flat assistance amount.Deadline: Rolling; available year-round via participating THDA-approved lenders.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee residentaffordable mortgagefixed-rate mortgagedown payment assistance eligiblestate HFA loanhomebuyer education required

View details →

Great Choice Homebuyer Programs

Open

Tennessee Housing Development AgencyTNFirst-Time HomeownerStatewide Tennessee Housing Development Agency platform that delivers 30 year fixed rate Great Choice first mortgages and companion Great Choice Plus down payment assistance second loans, along with related products for first-time and repeat buyers.

Updated: Dec 6, 2025

THDA’s Great Choice homebuyer portal is the statewide hub for affordable 30-year fixed-rate loans and companion down payment assistance options for Tennesseans.

Eligible for: Tennessee homebuyers who meet THDA income and purchase-price limits, minimum credit and debt-to-income requirements, and complete a THDA-app…

Funding: Down payment assistance through Great Choice Plus can generally provide up to about 5 percent of the purchase price, capped near 15000 dollars, as a subordinate loan to help cover required down payment and closing costs when paired with a Great Choice Home Loan.Deadline: Rolling; statewide, subject to program funding and current rate sheets.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee residentdown payment assistanceclosing cost assistanceaffordable mortgagefixed-rate mortgagestate HFA loanhomebuyer education required

View details →

Great Choice Plus – Down Payment Assistance

Open

Tennessee Housing Development AgencyTNFirst-Time HomeownerTennessee Housing Development Agency subordinate second mortgage that rides alongside a Great Choice first mortgage and provides up to around 5 percent of the home purchase price, typically capped near 15000 dollars, to cover down payment, closing costs and certain prepaid items.

Updated: Dec 6, 2025

Great Choice Plus is THDA’s companion down payment assistance loan, adding a low-cost second mortgage so income-eligible buyers can close with far less cash.

Eligible for: Borrowers who qualify for a Great Choice Home Loan, meet THDA income and purchase-price limits, complete required homebuyer education/counse…

Funding: Can provide up to about 5 percent of the home's purchase price, generally capped near 15000 dollars, as a structured second mortgage that helps cover down payment, reasonable closing costs and prepaid expenses when paired with a Great Choice first mortgage.Deadline: Rolling; only available in conjunction with an eligible Great Choice Home Loan while THDA DPA funds remain.RollingStatewidehomebuyerfirst-time homebuyerrepeat homebuyerlow-income homebuyerTennessee residentdown payment assistanceclosing cost assistancesecond mortgagestate HFA loanhomebuyer education required

View details →

First-Time Homebuyers Program – City of Clarksville

Open

City of Clarksville – Neighborhood & Community Services / Office of Housing & Community DevelopmentTNFirst-Time HomeownerHUD HOME funded assistance package that provides up to 25000 dollars in combined zero percent interest support, with an initial forgivable portion and a remaining silent second mortgage portion, to cover down payment and closing costs for eligible first-time buyers in Clarksville.

Updated: Dec 6, 2025

Clarksville’s First-Time Homebuyers Program uses HUD HOME funds to provide substantial zero-interest down payment and closing-cost assistance to low-income buyers purchasing in the city.

Eligible for: Low-income, first-time homebuyers (generally at or below 80% of area median income) purchasing a primary residence within the Clarksville ci…

Funding: Offers up to 25000 dollars in total assistance, typically structured so that roughly the first 15000 dollars is a zero percent interest forgivable loan after a required owner occupancy period, with any remaining amount provided as a zero percent interest silent second mortgage that is repaid when the home is sold, refinanced or no longer used as the buyer's primary residence.Deadline: Rolling; funded with HUD HOME dollars and offered while annual allocations remain available.RollingLocalhomebuyerfirst-time homebuyerlow-income homebuyerClarksville residentdown payment assistanceclosing cost assistance0% interestforgivable loansilent secondcity programHUD HOME funded

View details →