Citywide DPA (CWDPA)

What is Citywide DPA (CWDPA)?

Citywide DPA (CWDPA) is a forgivable loan for homebuyers in Memphis, Tennessee.

• Memphis HCD's flagship citywide DPA - up to $10,000 forgivable second mortgage for FTHBs purchasing within Memphis city limits at or below 80% AMI. 0% deferred, forgiven over 5 years. $300K max purchase, $500 minimum buyer contribution, HUD HOME-funded.
• The City of Memphis Citywide Down Payment Assistance program (CWDPA) is a HUD HOME / CDBG-funded forgivable second mortgage administered by the Memphis Division of Housing and Community Development. Eligible Memphis residents receive up to $10,000 toward down payment and closing costs to purchase a primary residence within Memphis city limits. The loan is 0% interest, deferred (no monthly payments), and forgivable over the HUD HOME affordability period (5 years for assistance < $15,000 per 24 CFR 92.254). After 5 years of continuous owner-occupancy the loan is fully forgiven and released.
• Funding comes from Federal, HOME, and City.

Do you have to pay it back?

Citywide DPA (CWDPA) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven over 5-year HUD HOME affordability period (1/5 forgiven each year of owner-occupancy). If property is sold, transferred, refinanced (cash-out), or vacated before 5 years, unforgiven balance becomes immediately due, limited to net proceeds.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Citywide DPA (CWDPA) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Citywide DPA (CWDPA) limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% AMI per HUD HOME limits for Memphis MSA. 2025 limits range $45,400 (1-person) to $75,200 (8-person).
• The limit applies to total household income, not only the borrower&rsquo;s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Citywide DPA (CWDPA) caps the purchase price at $300,000.

• Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (1 unit owner-occupied) per HUD HOME rules.
• New construction is eligible.
• Manufactured homes are not eligible.

Is there eligibility for specific groups?

Citywide DPA (CWDPA) names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Citywide DPA (CWDPA) serves buyers purchasing in Memphis, Tennessee.

How do you apply?

Applications for Citywide DPA (CWDPA) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agency required - certificate of completion before closing. Local providers include United Housing, Inc.; The Works, Inc.; Memphis HCD-approved providers list available at memphistn.gov..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Apply through Memphis HCD application portal; subject to annual HUD HOME / CDBG allocation availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.