Targeted Area DPA (TADPA)

What is Targeted Area DPA (TADPA)?

Targeted Area DPA (TADPA) is a forgivable loan for homebuyers in Memphis, Tennessee.

• Memphis HCD's higher-subsidy DPA track for buyers in HUD-designated Neighborhood Revitalization Strategy Areas (NRSAs). Up to $25,000 forgivable second mortgage at 0% deferred, forgiven over 10 years. Drives concentrated homeownership investment in revitalization census tracts. $300K max purchase, 80% AMI ceiling, $500 buyer contribution.
• Memphis Targeted Area Down Payment Assistance (TADPA) is a HUD HOME / CDBG-funded forgivable second mortgage administered by the Memphis Division of Housing and Community Development with a higher subsidy ceiling for buyers purchasing homes in HUD-designated Neighborhood Revitalization Strategy Areas (NRSAs) and other targeted census tracts within Memphis. Eligible buyers receive up to $25,000 toward down payment and closing costs (vs. $10,000 in standard CWDPA) - the higher subsidy is intended to drive concentrated homeownership investment in revitalization neighborhoods. The loan is 0% interest, deferred, and forgivable over a 10-year HUD HOME affordability period (longer term reflecting the larger subsidy). Pre-1978 housing subject to Lead Safe Housing Rule.
• Funding comes from Federal, HOME, and City.

How much assistance does it provide?

Targeted Area DPA (TADPA) offers up to $25,000 in assistance.

• Buyer contribution: Minimum $500 borrower contribution from 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 — the administering agency determines any individual award.

Do you have to pay it back?

Targeted Area DPA (TADPA) is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven over 10-year HOME affordability period (1/10 per year of owner-occupancy). Unforgiven balance due on sale, transfer, refinance (cash-out), or 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.

Who qualifies?

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

What are the income limits?

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

• Household income at or below 80% AMI Memphis MSA - 2025 limits $45,400 (1p) to $75,200 (8p).
• 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?

Targeted Area DPA (TADPA) caps the purchase price at $300,000.

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

Is there eligibility for specific groups?

Targeted Area DPA (TADPA) names 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?

Targeted Area DPA (TADPA) serves buyers purchasing in Memphis, Tennessee.

• The program targets specific areas: HUD-designated Neighborhood Revitalization Strategy Areas (NRSAs) and Memphis-designated targeted census tracts. Memphis HCD maintains current map and tract list.

How do you apply?

Applications for Targeted Area DPA (TADPA) 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 before closing). Memphis HCD-approved providers list at memphistn.gov..

2. 2

   Contact the administering agency to reserve funds

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