Buying a home in Millington and worried about the down payment? You have more help available than you might think. Because Millington sits outside Memphis city limits, you can tap Shelby County programs, statewide THDA options, and select nonprofit or federal loans. In this guide, you’ll see which programs fit Millington buyers, how much assistance you could get, and the exact steps to apply. Let’s dive in.
Know your program area
Millington is in Shelby County, not the City of Memphis. City of Memphis down payment assistance applies only to homes inside the city. If you are buying in Millington, focus on countywide programs and statewide options.
- Review Shelby County’s homeownership programs on the county portal for an overview of local DPA options and requirements (Develop 901 homeownership programs).
- Memphis city programs are city-only and do not apply to Millington properties (City of Memphis DPA).
Quick program comparison
| Program | Typical assistance | Key requirements | Works in Millington |
|---|---|---|---|
| Shelby County DPA | Up to about $6,000 as a second loan; terms and caps can change | Approved lender, income and purchase price limits, homebuyer education, minimum buyer contribution | Yes, countywide |
| THDA Great Choice Plus | $6,000 deferred/forgivable option, or up to 5% of price (max $15,000) amortizing | Must use THDA first mortgage, THDA-approved lender, homebuyer education | Yes, statewide |
| The Housing Fund | Up to $35,000 repayable DPA loan | Pair with FHA-approved first mortgage, education, underwriting | Yes, statewide |
| USDA Rural Development | 0% down on eligible properties | Property must be USDA-eligible; income limits apply | Possibly, address-dependent |
Shelby County DPA for Millington buyers
Shelby County’s down payment assistance is a county-run second loan that can help with your down payment and closing costs for homes anywhere in Shelby County, including Millington. Recent public descriptions show assistance up to about $6,000, often as a fixed-rate second with a repayment term example like 3% over up to 15 years. Program amounts, price caps, and terms can change, so always verify current details with the County.
Common features include an approved first mortgage, a minimum buyer contribution, income and debt-to-income limits, and a required homebuyer education course. You apply through a participating lender, and the County processes the DPA alongside your first mortgage. For current caps, lender lists, and contacts, start at the county portal and reach the Department of Housing team directly (Develop 901 homeownership programs, Shelby County Housing contacts).
THDA Great Choice and Great Choice Plus
Tennessee Housing Development Agency offers the Great Choice first mortgage with two Great Choice Plus DPA structures:
- Deferred option: $6,000 as a 0% second mortgage that is forgivable at the end of the 30-year term, typically due if you sell or refinance earlier.
- Amortizing option: up to 5% of the sales price, max $15,000, as a 30-year second mortgage with monthly payments at the same interest rate as the first.
You must use a THDA-approved lender, pair the DPA with a THDA first mortgage, and complete a THDA-approved homebuyer education course. Check current income and purchase price limits for Shelby County and lender lists on the THDA site (THDA Great Choice Plus).
Homeownership for Heroes
If you are a veteran, active military, or eligible first responder, THDA’s Homeownership for Heroes adds a 0.5% rate discount and can pair with the DPA options. Review eligibility and confirm details with your THDA-approved lender (Homeownership for Heroes overview).
Nonprofit option: The Housing Fund
The Housing Fund is a statewide CDFI that offers repayable DPA loans up to $35,000, typically with fixed interest and 10 to 15 year terms. It pairs with an FHA-approved first mortgage and requires THDA-certified homebuyer education. This can be a fit if you need more assistance than county or THDA limits provide. Learn more and ask your lender about participation requirements (The Housing Fund DPA).
USDA, FHA, and VA loans with DPA
USDA Rural Development offers 0% down financing on eligible properties. Property eligibility is geographic and verified on USDA’s map. If your Millington address qualifies and you meet income limits and underwriting, USDA can reduce or eliminate your down payment needs (USDA Single Family Housing programs).
FHA loans require 3.5% down, which you can often cover with DPA. VA loans offer 0% down for eligible service members and veterans, and some DPA sources can pair with VA. Your lender can help you match the right first mortgage with the right assistance.
Which program might fit you
Use this quick checklist to narrow options:
- Need more than $15,000 in help: Consider The Housing Fund.
- Want no monthly DPA payment: Look at THDA’s $6,000 deferred option.
- Need larger DPA with payments spread out: Consider THDA’s amortizing option up to 5%.
- Buying a property that might be rural-eligible: Ask about USDA 0% down.
- Veteran, active duty, or eligible first responder: Check Homeownership for Heroes with THDA.
- Buying in Millington: Focus on Shelby County DPA, not City of Memphis programs.
How to apply, step by step
- Get prequalified with a lender and confirm they participate in your target program(s). Ask about Shelby County DPA, THDA Great Choice Plus, The Housing Fund, and USDA eligibility for your property area (Develop 901 homeownership programs).
- Complete THDA-certified homebuyer education if required by your chosen DPA (THDA Great Choice Plus).
- Have your lender submit the DPA package to the program administrator, such as Shelby County or The Housing Fund, as part of your mortgage file.
- Allow extra time for second-mortgage documents and program approvals before closing.
What to prepare for your file
Gather the standard items lenders and DPA administrators request:
- Photo ID and Social Security numbers.
- Recent pay stubs, W-2s or tax returns, and bank statements.
- Employment verification and a list of debts.
- Rental history and your homebuyer education certificate.
Key rules to verify before you shop
Program rules change. Before you write offers, confirm:
- Current income and purchase price limits for Shelby County.
- Minimum buyer contribution and debt-to-income cap.
- Whether your lender is approved for the program.
- The latest assistance amounts and repayment terms.
Start with the official resources and the County team for the most current details (Develop 901 homeownership programs, Shelby County Housing contacts).
Ready to map the best path to the keys? If you want clear guidance and a calm, organized plan from offer to closing, connect with Rachel Goss to get started.
FAQs
Can Millington buyers use Memphis DPA programs?
- No. City of Memphis DPA is for homes inside city limits. Millington buyers should look at Shelby County DPA and statewide options like THDA.
How much help can Shelby County DPA provide?
- Recent descriptions show up to about $6,000 as a second loan, but amounts and caps can change, so confirm with Shelby County Housing before you apply.
Can I get more than $6,000 in assistance?
- Yes. THDA’s amortizing option goes up to 5% of the price, max $15,000, and The Housing Fund can offer up to $35,000 as a repayable loan.
Is DPA a grant or a loan in Tennessee?
- It varies by program. THDA’s $6,000 deferred option is forgivable at term, while many county and nonprofit DPAs are repayable second mortgages.
Does USDA 0% down apply in Millington?
- Possibly. USDA eligibility depends on the property’s address and your income. Ask your lender to check the USDA eligibility map for your target home.
