Memphis Homebuyer Program Incentive Citizens (HIPC)

What is Memphis Homebuyer Program Incentive Citizens (HIPC)?

Memphis Homebuyer Program Incentive Citizens (HIPC) is a forgivable loan for homebuyers in Memphis, Tennessee, administered by City of Memphis Division of Housing & Community Development (HCD).

• The City of Memphis HCD Homebuyer Program Incentive Citizens (HIPC) provides down payment and closing cost assistance to homebuyers purchasing within 15 designated revitalization areas of Memphis. Assistance is a forgivable, deferred-payment loan not exceeding $25,000 or 10% of the sales price, secured by a five-year lien with no monthly payments. Unlike the income-restricted Citywide DPA, HIPC allows incomes up to 200% of area median income.
• Up to $25,000 or 10% of sales price.
• 0% interest, no monthly payments.
• Forgiven after 5 years.
• High 200% AMI income ceiling.
• Covers down payment and closing costs.
• Funding comes from HUD HOME funds / City of Memphis HCD.

How much assistance does it provide?

Memphis Homebuyer Program Incentive Citizens (HIPC) offers up to $25,000 in assistance.

• Amounts are the program's published maximums, not an offer — City of Memphis Division of Housing & Community Development (HCD) determines any individual award.

Do you have to pay it back?

Memphis Homebuyer Program Incentive Citizens (HIPC) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer, or failure to maintain as primary residence before the 5-year lien term is satisfied.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Memphis Homebuyer Program Incentive Citizens (HIPC) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Memphis Homebuyer Program Incentive Citizens (HIPC) limits household income to 200% of the area median income, which varies by county and household size.

• Max income 200% of Shelby County AMI (2023 HUD, eff 6/1/2023): 1 $110,060; 2 $116,640; 3 $123,120; 4 $129,600; 5 $134,800; 6 $140,000; 7 $145,200; 8 $150,340. (Shelby 4-person median $81,000.).
• 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?

Memphis Homebuyer Program Incentive Citizens (HIPC) caps the purchase price at $350,000.

• Eligible property types include Single Family.
• New construction is eligible.

Where does it apply?

Memphis Homebuyer Program Incentive Citizens (HIPC) serves buyers purchasing in Memphis, Tennessee.

• The program targets specific areas: 15 HIPC-designated revitalization areas within Memphis.

How do you apply?

Applications for Memphis Homebuyer Program Incentive Citizens (HIPC) go through City of Memphis Division of Housing & Community Development (HCD), which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Memphis Division of Housing & Community Development (HCD) to reserve funds

   Funds are reserved through Application made through the first mortgage lender., and are subject to availability.

2. 2

   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.