Shelby County Down Payment Assistance Program

What is Shelby County Down Payment Assistance Program?

Shelby County Down Payment Assistance Program is a repayable second loan for homebuyers in Shelby County, Tennessee, administered by Shelby County Department of Housing (Division of Planning & Development).

• Shelby County's DPA Program assists low- and moderate-income buyers with a portion of down payment and closing costs to purchase an existing or newly constructed home anywhere within Shelby County (covering unincorporated Shelby plus Arlington, Bartlett, Collierville, Germantown, Millington; the City of Memphis runs separate programs).
• Up to $6,000 toward down payment and closing costs as a 3% fixed-rate loan repayable over up to 15 years.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal (HUD HOME/CDBG via Shelby County).

How much assistance does it provide?

Shelby County Down Payment Assistance Program offers up to $6,000 in assistance.

• Buyer contribution: Purchaser must invest a minimum of $500 of own funds.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Shelby County Department of Housing (Division of Planning & Development) determines any individual award.

Do you have to pay it back?

Shelby County Down Payment Assistance Program is a repayable second loan and is repaid under the terms set by Shelby County Department of Housing (Division of Planning & Development).

• Repayment is triggered by Amortizing repayment over up to 180 months (15 years).
• The assistance is recorded in Subordinate 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?

Shelby County Down Payment Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Shelby County Down Payment Assistance Program sets its income limit as follows: Household income limits by family size: up to 2 persons min $26,100 max $98,314; 3 or more persons min $26,100 max $113,061.

• The limit applies to total household income, not only the borrower’s.
• 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?

Shelby County Down Payment Assistance Program caps the purchase price at $300,000.

• Eligible property types include single_family and new_construction.
• New construction is eligible.

Where does it apply?

Shelby County Down Payment Assistance Program is a federal program, so it is not limited to Tennessee.

How do you apply?

Applications for Shelby County Down Payment Assistance Program go through Shelby County Department of Housing (Division of Planning & Development), 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 Certified Homebuyer Education Class (provider not specified)..

2. 2

   Contact Shelby County Department of Housing (Division of Planning & Development) to reserve funds

   Funds are reserved through Neighborly online application portal, 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.