Memphis is one of the most affordable major U.S. metros, and the city runs two down payment programs — each worth up to $25,000 — that can cover a very large share of a purchase here.
This guide focuses on what first-time buyers in Memphis specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Memphis’s own first-time buyer programs
The City of Memphis Division of Housing and Community Development runs two main tracks:
- Citywide Down Payment Assistance (CWDPA) — a City of Memphis 0% deferred loan over a 5-year affordability period (forgiven if conditions are met, otherwise repaid at 20% per year), worth up to 10% of the sales price with a $25,000 maximum, for buyers at or below 80% of area median income (max price $300,000)
- Homebuyer Incentive Program (HIP) — a deferred 5-year loan also worth up to 10% of the price ($25,000 max), with tracks including HIP Citizens (income up to 200% of area median income) and HIP Police/Fire/Memphis-Shelby County Schools (no income limit); max price $350,000
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Memphis
On top of Memphis’s local help, every Tennessee buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Tennessee first-time home buyer programs, and the wider local picture in our Tennessee first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Memphis
Memphis’s median sale price is roughly $150,000 — one of the most affordable big metros in the country. At that price, $25,000 in assistance can cover the entire down payment and closing costs, which is what makes the city’s programs so effective. The HIP track for police, firefighters, and school employees is especially notable because it carries no income limit.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Memphis buyers
Most Memphis first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Memphis
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Memphis and Tennessee program requires one, and it is usually free.
- Find a lender who works with both Memphis and Tennessee programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Memphis first-time buyer FAQ
What down payment help is available in Memphis?
Memphis offers two city programs, each up to $25,000 (10% of the price): Citywide Down Payment Assistance (CWDPA) for buyers at or below 80% of area median income (max price $300,000), and the Homebuyer Incentive Program (HIP), whose tracks reach up to 200% of area median income for general buyers and carry no income limit for police, firefighters, and Memphis-Shelby County Schools employees (max price $350,000). Tennessee’s statewide THDA programs apply too.
Can I combine Memphis city programs with Tennessee state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Tennessee state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Tennessee programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Memphis?
CWDPA and the HIP Citizens track require first-time buyer status (no ownership in the past three years), while the HIP Police, Fire, and Schools tracks waive both the first-time requirement and the income limit. All require at least eight hours of housing counseling from a HUD-approved agency and a primary residence in Memphis under the applicable price cap. Confirm current terms with the city’s Division of Housing and Community Development.
Which Memphis program is best for me?
If your income is at or below 80% of area median income, Citywide Down Payment Assistance (CWDPA) offers up to $25,000 on a home up to $300,000. If you earn more, the Homebuyer Incentive Program (HIP) Citizens track reaches up to 200% of area median income, and if you are a police officer, firefighter, or Memphis-Shelby County Schools employee, the HIP track for you has no income limit at all — also up to $25,000, on a home up to $350,000. Both require eight hours of counseling. The city’s housing division can confirm which fits.