Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage

What is Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage is a first mortgage for homebuyers in Memphis, Tennessee, administered by Habitat for Humanity of Greater Memphis.

• Habitat for Humanity of Greater Memphis provides 0% interest 30-year fixed mortgages on Habitat-built homes to households earning less than 80% AMI in Shelby County. Buyers contribute $2,000 toward closing costs and complete 250-300 sweat equity partnership hours. Income guidelines updated annually per HUD. Info sessions required before application.
• 0% interest 30-year fixed mortgage.
• Homes priced below market.
• $2,000 closing cost contribution (payable in increments).
• No PMI.
• Funding comes from Habitat for Humanity of Greater Memphis / private fundraising.

Do you have to pay it back?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage is a first mortgage and is repaid under the terms set by Habitat for Humanity of Greater Memphis.

• Repayment is triggered by Sale, transfer, or failure to maintain owner-occupancy.
• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage limits household income to 80% of the area median income, which varies by county and household size.

• Must earn less than 80% AMI for Shelby County. 2026 income guidelines (gross annual): 1-person $33,500-$51,950; 2-person $33,500-$59,350; 3-person $33,500-$66,750; 4-person $35,000-$74,150; 5-person $36,000-$80,100; 6-person $36,000-$86,050; 7-person $36,000-$91,950; 8-person $36,000-$97,900. Minimum income also applies. Guidelines updated annually per HUD.
• 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.

What kind of home can it be used for?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage caps the purchase price as follows: Habitat-set pricing; 30-year fixed rate mortgage.

• Eligible property types include Single Family.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage serves buyers purchasing in Memphis, Tennessee.

• The program targets specific areas: Shelby County (Memphis area), Tennessee.

How do you apply?

Applications for Habitat for Humanity of Greater Memphis Affordable Homeownership Mortgage go through Habitat for Humanity of Greater Memphis, 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 Memphis Habitat multi-week Homebuyer Education Course (100 of required partnership hours).

2. 2

   Contact Habitat for Humanity of Greater Memphis to reserve funds

   Funds are reserved through Info sessions required prior to application; sessions scheduled periodically, 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.