Homebuyer Programs in Memphis, TN (2026)
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.
Top Homebuyer 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 → |
| Shelby County Down Payment Assistance Program | Repayable Loan | Up to $6,000 | No | View → |
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| 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 → |
| THDA Great Choice Home Loan | Government-Insured Mortgage | 30-year fixed-rate mortgage at below-market interest rates | 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 | 0.5% reduced interest rate plus up to $15,000 or 5% of purchase price in DPA | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $25,000 or 10% of the sales price
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Up to $6,000
- First-time only:
- No
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to $35,000
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- 30-year fixed-rate mortgage at below-market interest rates
- First-time only:
- Yes
- Type:
- Repayable Loan
- Amount:
- Up to 5% of the purchase price, maximum $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $6,000 forgivable second mortgage
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- 0.5% reduced interest rate plus up to $15,000 or 5% of purchase price in DPA
- First-time only:
- No
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.