DOWN PAYMENT ASSISTANCE DEPARTMENT
The Downpayment Assistance (DPA) Department
provides funds to help meet the down payment and closing cost requirements needed to complete the closing of a new or existing home. All properties must be located within Memphis city limits or designated areas per program guidelines.
CITYWIDE DPA PROGRAM (CWDPA)
REQUIREMENTS:
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Must complete HUD certified housing counseling.
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Must maintain the property as a primary residence for a 5/10 year affordability period.
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2nd lien placed on the property for 5/10 years, released if all terms are met.
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Minimum investment of 1% of the sales price
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Deferred payment loan, no monthly payments during the 5/10 year affordability period.
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Property must pass required inspection prior to submitting a file to DPA Department
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Maximum Sales Price $300,000.
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Minimum of the lessor of $500 or 1% of sales price available in savings, checking accounts.
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Please allow 10 business for approval and processing.
MORE CITYWIDE DPA PROGRAMS
Memphis Housing Authority (MHA) – current or recently displaced MHA residents, the maximum income limit is 80% area median income, may purchase anywhere in the city limits.
Section 8 Homeownership Program (SHAPE) – current Housing Choice Voucher holders, the maximum income limit is 80% area median income, may purchase anywhere in the city limits.
Targeted Area DPA (TADPA) – must purchase a home through MHA HOPE VI Program, the maximum income limit is 80% area median income.
HOMEBUYER INCENTIVE PROGRAM (HIP) REQUIREMENTS:
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Do not have to be a first-time homebuyer but may not own other property at the time of purchase using the city’s DPA Program.
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Must complete HUD certified housing counseling.
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Must maintain the property as primary residence for 5-year affordability period.
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2nd lien placed on the property for 5 years, released if all terms are met.
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Minimum investment of 1% of sales price.
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Deferred payment loan, no monthly payments during 5-year affordability period.
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Maximum Sales Price, new and existing $350,000.
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Minimum of lessor of $500 or 1% of sales price available in savings, checking accounts.
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Please allow 10 business for approval and processing.
HOMEBUYER INCENTIVE PROGRAM – CITIZENS
Homebuyers with income between 80% – 200% median income, purchasing in designated areasinside the city limits and meeting specific program eligibility requirements.
