Effective July 1, 2021, the Department of Housing has changed the terms of its Down Payment Assistance program to provide income qualified homebuyers with assistance necessary for down payment and closing costs towards the purchase of a home in Shelby County.

Assistance will be provided in the form of a loan up to $6,000 at 3% interest for a term of up to 15 years. Homebuyers receiving this assistance must invest a minimum of $500 of their own funds and must be able to qualify for THDA, FHA, VA, or conventional mortgage financing. The home may be either an existing home or a newly constructed home anywhere within the boundaries of Shelby County as long as the purchase price does not exceed $250,000.

Purchasers must also complete a homebuyer education class provided by a housing counseling agency. The Consumer Financial Protection Bureau has a housing counselor locator tool available to assist in finding a housing counselor in your local area.

For more information about these changes and other available programs, visit the Develop 901 website.