Down Payment Assistance Program

Down Payment Assistance Program is a forgivable loan for homebuyers in Shelby County, Tennessee. Shelby County DPA - HUD HOME/CDBG-funded forgivable second mortgage for FTHBs in Shelby County (outside City of Memphis). Up to $15,000 at 0% interest, deferred, forgiven over 5 years. $400K max purchase, income $98,314-$113,061 (80-120% AMI tiers). Shelby County Department of Housing Down Payment Assistance Program is a HUD HOME / CDBG-funded forgivable second mortgage for first-time homebuyers purchasing a primary residence in Shelby County (excluding the City of Memphis, which has its own HCD programs). Eligible buyers receive up to $15,000 toward down payment and closing costs. The loan is 0% interest, deferred, and forgivable over a 5-year HUD HOME affordability period. Income limits at the upper end ($98,314-$113,061) reflect Shelby County's slightly higher income ceiling allowing buyers between 80%-120% AMI Memphis MSA upper household-size brackets. Funding comes from Federal, HOME, and County.

Down Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven over 5-year HOME affordability period (1/5 per year). Unforgiven balance due on sale/refi/transfer/non-occupancy before period end, 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.

Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Standard HUD HOME exceptions. On credit, the program states: 620 typical minimum FICO. A homebuyer education course is required, through HUD-approved housing counseling agency required. Local providers include United Housing, Inc., The Works, Inc. Online via eHome America accepted. Residency requirement: Property in Shelby County (typically excluding the City of Memphis); primary residence; 5-year affordability. Citizenship or immigration status: Per HUD HOME federal eligibility. First-time homebuyer required. Household income $98,314-$113,061 (per seed; reflects Shelby County's specific underwriting range covering 80%-120% AMI Memphis MSA upper household-size brackets - some Shelby County DPA tiers extend above standard 80% AMI per local program design). Property must be located in Shelby County (excluding incorporated cities of Memphis - which has its own HCD programs - though Shelby County DPA may serve Bartlett, Collierville, Germantown, Lakeland, Millington, Arlington). Max purchase price $400,000. HUD-approved counseling required. Minimum $500 borrower contribution. Property must pass HQS / NSPIRE; pre-1978 housing subject to Lead Safe Housing Rule. 5-year HOME affordability.

Down Payment Assistance Program limits household income to 120% of the area median income, which varies by county and household size. Household income limits per Shelby County DPA program design; range $98,314 to $113,061 reflects upper household-size brackets (covering up to 120% AMI Memphis MSA in some tiers). Verify current schedule with Shelby County Department of Housing. The limit applies to total household income, not only the borrower’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.

Down Payment Assistance Program caps the purchase price at $400,000. Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-unit (1 unit owner-occupied), manufactured home on permanent foundation. New construction is eligible. Manufactured homes are eligible.

Down Payment Assistance Program 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.

Down Payment Assistance Program serves homebuyers purchasing in Shelby County, Tennessee.

Applications for Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Apply through Shelby County Department of Housing; subject to annual HOME / CDBG allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.