13% of all buyers in 2018 cited saving for a Downpayment
as the most difficult step in the home buying process.
For buyers 28 years and younger 26%
There are many different ways a buyer can gather money for a Downpayment: savings, investments, or gift of money from family. Yet, no one's situation is the same.
In Memphis, where our company is headquartered, we have many resources for buyers to gather money for a Downpayment, called DPAs or Down Payment Assistance programs. All kinds of people at all different stages of life have taken advantage of these local and statewide programs:
Memphis City DPA for Teachers, Police, Firefighters, & 1st Responders **Teachers' program is refunded this summer**
State wide DPA from THDA called, Great Choice
Even our Friends in North Mississippi have Mississippi Home Corp, Smart Solutions
Oh, also Arkansas has the ADFA Dream DPA
Community Mortgage Loan Officers are very familiar with all of these DPA. Contact one of your favorite LOs for more info on these.
For this post we are going to focus on the Shelby County DPA program.
1. Property must be located in Shelby County.
2. Max loan amount $200,160 for the home you would like to buy.
3. Min of $500 investment from you, the buyer. (Money cannot be a gift)
4. Up to $3500 as a 5% loan. Repayment period can be up to 10 years.
5. You, the buyer, must complete an 8hr Homebuyer Counseling Class.
6. There are household income limits depending on the number of people in your household:
1-2 people $60,100
3+ people $69,115
***Borrower must meet the Agency guidelines for qualifying as well (credit, employment, etc.). Approval by Shelby County DPA does not guarantee qualification for the first mortgage.