Correction: Down Payment Assistance Program
Memphis sent this bulletin at 08/02/2016 05:13 PM CDT
The City of Memphis Division of Housing and Community Development (HCD) has developed a number of Down Payment Assistance (DPA) programs for homebuyers that we would like to bring to the attention of City of Memphis employees. City of Memphis employees will be eligible to take advantage of our new Citizens Homebuyer Incentive Program, which will be effective August 1st, 2016. A special set-aside of this program has been designated for Public Safety employees, which has even more flexible requirements.
An outline of the DPA Programs available through HCD has been provided below, including brief descriptions of the two aforementioned programs. In addition to the programs provided through the City of Memphis, we would also like to highlight the Good Neighbor Next Door Program, which is offered through the U.S. Department of Housing and Urban Development (HUD). Through this program, law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians can contribute to community revitalization while becoming homeowners. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence. To find out more about this program and view the available properties, please visit www.hudhomestore.com.
FY17 City of Memphis Down Payment Assistance Programs Summary
Homebuyer Incentive Program (HIP)- up to 10% of the sales price, not to exceed $10,000 to buyers to be used for down payment and reasonable closing costs needed to complete the purchase transaction. Buyers do not have to be first-time homebuyers but may not own any other property at the time of purchase. Repair escrows are allowed at closing. Lender must provide certification to the city once all repairs are complete and passing inspection.
*Citizens (HIP-C)- To be eligible, homebuyers income may not exceed 200% AMI and property must be purchased within the designated zip codes and neighborhoods. Designated areas: 38106, 38107, 38107, 38108, 38109, 38114, 38116, 38118, 38122, 38126, 38127, 38128, Beltline, Binghampton/Highland Heights, Hickory Hill and the Carnes Neighborhood.
*Public Safety Sector (HIPP and HIPF)- There is no income limit for the HIPP and HIPF programs. Buyers may purchase anywhere in the Memphis city limits. The HIPP and HIPF applicant must remain employed and in good standing with City of Memphis Police Department and Fire Department, respectively.
City of Memphis Police Department- To be eligible, applicant must be full-time Uniformed Police Officer for a minimum of one year (not on probation).
City of Memphis Fire Department- To be eligible, applicant must be full-time front-line employees (equipment riding) for a minimum of one year (not on probation). This includes fire fighters, EMTs and Paramedics.
*Shelby County School Teachers (HIP-T)- To be eligible, applicants must be a full-time, state certified K-12 classroom teachers, employed for a minimum of two (2) years by Shelby County Schools. There is no income limit for this program. Buyers may purchase anywhere in the Memphis city limits. During the period of affordability, employee must remain employed and in good standing with SCS.
Citywide DPA (CWDPA), Memphis Housing Authority DPA (MHA), Memphis Housing Connect DPA (MHC) and Targeted Area DPA (TADPA)- up to 10% of the sales price, not to exceed $10,000 to first-time homebuyers not exceeding the 80% AMI income limits and purchasing property located within the Memphis city limits or targeted areas (HOPE VI projects), to be used for down payment and reasonable closing costs needed to complete the purchase transaction.
*Memphis Housing Authority (MHA)- To be eligible, the applicant must be a tenant in property owned and maintained by the Memphis Housing Authority or have been displaced from MHA property within the last 12 months.
*Memphis Housing Connect (MHC)- To be eligible, the applicant must be currently receiving Section 8 Rental Assistance from Memphis Housing Authority and be participating in the MHC Program through MHA-Urban Strategies. Lenders must have accepted the MHC Guidelines through MHA-Urban Strategies in order to submit MHC Applicants for DPA.
**Please Contact DPA Department full program guidelines and requirements**
DPA Department: 901.576.7474
Paul A. Young
Director, Division of Housing & Community Development
City of Memphis
701 North Main Street
Memphis, TN 38103
(901) 636-7308 (Office)