See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated March 28, 2026

Homebuyer Programs in Memphis, TN (2026)

Population: 633,000 | Median home price: $220,000 | Est. closing costs: $4,500 - $6,500

Memphis, Tennessee's second-largest city and the Shelby County seat, offers some of the most affordable housing in the state with a median home price around $220,000. Homebuyers in Memphis can access substantial assistance through the City of Memphis Down Payment Assistance Program, which provides up to $25,000 or 10% of the sales price as a forgivable loan. The THDA Great Choice Plus program adds up to $6,000 as a forgivable second mortgage or up to $15,000 as a repayable loan. Habitat for Humanity of Greater Memphis offers zero-interest mortgages to qualifying families. By combining city, state, and federal programs, Memphis buyers could potentially receive over $40,000 in total assistance.

City Programs in Memphis

Program Name	Type	Amount	First-Time Only	Details
City of Memphis Down Payment Assistance Program	Forgivable Loan	Up to $25,000 or 10% of the sales price	No	View →

City of Memphis Down Payment Assistance Program

Type:: Forgivable Loan
Amount:: Up to $25,000 or 10% of the sales price
First-time only:: No

County Programs in Shelby County

Program Name	Type	Amount	First-Time Only	Details
Shelby County Down Payment Assistance Program	Repayable Loan	Up to $6,000	No	View →

Shelby County Down Payment Assistance Program

Type:: Repayable Loan
Amount:: Up to $6,000
First-time only:: No

State Programs in Tennessee

Program Name	Type	Amount	First-Time Only	Details
THDA Great Choice Home Loan	Government-Insured Mortgage	30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years)	Yes	View →
THDA Great Choice Plus - Amortizing Option	Repayable Loan	Up to 5% of the purchase price, maximum $15,000	Yes	View →
THDA Great Choice Plus - Deferred Option	Forgivable Loan	$6,000 forgivable second mortgage	Yes	View →
THDA Homeownership for Heroes	Government-Insured Mortgage	0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable	Yes	View →

THDA Great Choice Home Loan

Type:: Government-Insured Mortgage
Amount:: 30-year fixed-rate first mortgage used with FHA, VA, USDA-RD or conventional financing (up to 96.5% financing on FHA, 100% on VA/USDA-RD); optional Great Choice Plus DPA of 5% of price up to $15,000 (amortizing) or $6,000/$10,000 (deferred, forgivable after 10 years)
First-time only:: Yes

THDA Great Choice Plus - Amortizing Option

Type:: Repayable Loan
Amount:: Up to 5% of the purchase price, maximum $15,000
First-time only:: Yes

THDA Great Choice Plus - Deferred Option

Type:: Forgivable Loan
Amount:: $6,000 forgivable second mortgage
First-time only:: Yes

THDA Homeownership for Heroes

Type:: Government-Insured Mortgage
Amount:: 0.50% interest rate reduction on a THDA Great Choice Home Loan (FHA, VA or USDA-RD only); optional Great Choice Plus DPA of up to 5% of price (max $15,000) amortizing, or $6,000/$10,000 deferred and forgivable
First-time only:: Yes

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
FHA Loans	Government-Insured Mortgage	Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)	No	View →
Good Neighbor Next Door (HUD)	Government Property Sale Program	50% discount off the list price of HUD-owned homes	Yes	View →
Home Possible Mortgage (Freddie Mac)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HomeReady Mortgage (Fannie Mae)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HUD $100 Down Program	FHA-Financed HUD REO Purchase	Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.	No	View →
USDA Rural Development Loans	Government-Guaranteed Mortgage	100% financing (no down payment required); loan amount up to appraised value	No	View →
VA Loans	Government-Guaranteed Mortgage	No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)	No	View →

FHA Loans

Type:: Government-Insured Mortgage
Amount:: Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:: No

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HomeReady Mortgage (Fannie Mae)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HUD $100 Down Program

Type:: FHA-Financed HUD REO Purchase
Amount:: Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:: No

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

Type:: Government-Guaranteed Mortgage
Amount:: No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:: No

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of Greater Memphis Homebuyer Program	Zero-Interest Loan	Affordable home purchase with zero-interest mortgage	Yes	View →
The Housing Fund Down Payment Assistance	Repayable Loan	Up to $35,000	Yes	View →

Habitat for Humanity of Greater Memphis Homebuyer Program

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with zero-interest mortgage
First-time only:: Yes

The Housing Fund Down Payment Assistance

Type:: Repayable Loan
Amount:: Up to $35,000
First-time only:: Yes

Free eligibility check

15 programs available in Memphis. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. The City of Memphis DPA program has income limits that vary by program. The HIPC program requires income below 200% AMI for purchases in designated areas. THDA programs have county-specific income limits for Shelby County.

Step 2: Complete homebuyer education. All THDA programs require completion of a homebuyer education course from a THDA-certified counselor. Contact a local HUD-approved counseling agency to register.

Step 3: Get pre-approved for a mortgage. Contact a THDA-approved lender to apply for a Great Choice Home Loan with down payment assistance. A minimum credit score of 640 is required for THDA programs.

Step 4: Apply for City of Memphis DPA. Contact the Office of Down Payment Assistance at (901) 636-7474 or email dpa@memphistn.gov. Programs include HIPC for designated areas, HIPP for police officers, HIPF for firefighters, and MSCS for Memphis Shelby County Schools employees.

Step 5: Find a home within program limits. Work with your real estate agent to find a home within THDA purchase price limits for Shelby County and within Memphis city limits for city DPA programs.

Step 6: Submit your applications and close. Your lender will coordinate with THDA and the City of Memphis DPA office. Allow adequate time for processing.

Frequently Asked Questions

How much down payment assistance can I get in Memphis?+

Memphis buyers can access multiple programs. The City of Memphis DPA provides up to $25,000 or 10% of the sales price as a forgivable loan. THDA Great Choice Plus offers $6,000 as a forgivable second mortgage (deferred option) or up to $15,000 (amortizing option). By stacking eligible programs, Memphis buyers could receive over $40,000 in total assistance.

Do I have to be a first-time homebuyer to qualify?+

THDA Great Choice programs generally require first-time buyer status (no homeownership in the past 3 years), with exemptions for veterans, active military, first responders, and buyers in targeted areas. The City of Memphis programs have varying requirements depending on the specific program.

Are there special programs for Memphis city employees?+

Yes. The City of Memphis offers targeted DPA programs including HIPP for uniformed Memphis Police officers with at least one year of service, HIPF for front-line Memphis firefighters with at least one year of service, and MSCS for full-time Memphis Shelby County Schools employees with at least two years of service.

What is the maximum home price I can pay in Memphis?+

THDA purchase price limits for Shelby County are updated periodically. Check GreatChoiceTN.com for current limits. City of Memphis DPA requires the property to be within Memphis city limits or designated areas per program guidelines.

What homebuyer education is required?+

All THDA programs require completion of a homebuyer education course from a THDA-certified counselor. Contact a local HUD-approved housing counseling agency to find available courses in the Memphis area.

What credit score do I need?+

THDA Great Choice programs require a minimum credit score of 640 for all borrowers on the loan application. Habitat for Humanity of Greater Memphis has its own qualification criteria for their zero-interest mortgage program.