Memphis offers loans to encourage homebuyers in city limits

MEMPHIS, Tenn. (AP) – The city of Memphis is offering payment assistance of up to $10,000 to encourage people to buy homes inside the city limits.

The Commercial Appeal reports that the new Homebuyer Incentive Program is offering three types of forgivable, interest-free loans in an attempt to reverse population loss. The loans are being offered to citizens, city public safety employees and Shelby County Schools teachers.

Housing & Community Development Director Paul Young says the city has only about $500,000 budgeted for down payment assistance in this new fiscal year, but he says the program could be expanded next year.

The city is offering loans worth 10 percent of the home’s sales price – up to $10,000 – for citizens earning 200 percent or less of the area’s average median household income.