Memphis & Shelby County Down Payment Assistance (THDA)
Memphis is one of the most affordable major metros in the country, which makes THDA down payment assistance stretch further here. Here is how Great Choice and Great Choice Plus work across Shelby County.
How THDA works in Shelby County
Memphis changes the math on down payment assistance. With lower home prices across Shelby County, the $10,000 forgivable second goes further here than in the Nashville metro, it can cover the full down payment and a chunk of closing costs on a typical Memphis home. THDA pairs a Great Choice first mortgage (FHA, VA, or USDA) with the Great Choice Plus second. The county income limit is $102,794 for a couple and $118,214 for a larger household, and the statewide price cap is $500,000, which almost no Memphis buyer will bump into.
Buying across Memphis and Shelby County
Shelby County gives first-time buyers real choice under the cap. Inside Memphis, Frayser, Raleigh, Hickory Hill, Whitehaven, and parts of East Memphis and Berclair hold affordable homes. The suburban cities, Bartlett, Cordova, and parts of Arlington and Lakeland, offer newer construction, while Collierville and Germantown run higher but still sit well under $500,000. Many Memphis neighborhoods also fall in targeted tracts, which matters for the first-time rule.
The targeted-county advantage in Memphis
Memphis has one of the larger shares of targeted census tracts in the state, and that is good news. In a targeted tract, THDA waives the 36-month first-time-buyer rule, so a repeat buyer can still use Great Choice and the DPA second. Targeted tracts can also come with higher income limits. If you have owned before and are buying in Memphis, do not assume you are out, we check the tract map against your address first.
County income limits effective 08.01.2026, verified against the THDA county limit table; statewide maximum purchase price is $500,000. Limits change; confirm on the THDA down payment assistance page or our eligibility page before relying on a figure.
Common questions
What is the income limit for THDA in Memphis / Shelby County?
Shelby County's THDA income limit is $102,794 for a 1-2 person household and $118,214 for 3 or more, effective 08.01.2026.
Why does THDA assistance go further in Memphis?
Memphis home prices are among the lowest of any major U.S. metro, so the $10,000 forgivable Great Choice Plus second covers a larger share of a typical purchase here, often the full down payment plus closing costs.
Can repeat buyers use THDA in Shelby County?
Often yes. Shelby County has many targeted census tracts, and in a targeted tract THDA waives the 36-month first-time-buyer rule. Veterans also get the waiver statewide.
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