Current down payment assistance guidelines, updated from one source.
The snapshot below is not typed onto this page — it is pulled from one down payment assistance guideline source and refreshed when that source changes, so Collierville, TN always shows the options in force.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while the smaller options cover the 3.5% FHA minimum.
Covers the whole FHA down payment
This covers the entire 3.5% FHA minimum down payment and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
The forgivable and repayable options have no income limit at all — one of the biggest advantages of this program. Only the nothing-to-repay option asks for income at or below 140% of the area median, or a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Tennessee · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
Program figures are hydrated from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not the lender, and is not affiliated with FHA, USDA, HUD, or the federal government.
What down payment assistance is — and how the options differ.
For Collierville, TN buyers, the first-time home buyer programs work the same way: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Tennessee.
Assistance covers the FHA down payment
In Collierville, TN, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.
Four shapes: grant, forgivable, repayable, refinance
The assistance comes as a grant where it is offered, as a forgivable second lien, or as a repayable second lien; each pairs with the first lien differently, and the options table on this page shows what is offered in Tennessee.
Credit floors, mortgage programs, and unit counts
Each option carries its own credit floor, its own first-lien list, and its own unit limit: the nothing-to-repay option pairs only with FHA and reaches four units; the second-lien options pair with FHA, USDA, and HUD-184 and stop at two units for a purchase.
Eligibility without a first-time-buyer rule
Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.
The assistance is measured on the price, so the calculator starts there. It then applies the option you choose, your own cash, and an editable benchmark rate to show the loan, the mortgage insurance, and the payment.
Where Collierville’s first-time and moderate-income buyers shop — and how the assistance fits.
The share of Collierville, TN households that rent, the median home value, and the median household income together sketch the gap the assistance closes for a first purchase.
Read the figures as backdrop. In most markets, the renter households are the pool the program exists for: qualified for a payment close to their rent, short the cash to close; the assistance is the bridge from one to the other.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Collierville submarkets, distinct property rules.
Where a Collierville home sits changes which option can attach and what the property review asks; the submarkets below are the map most assistance files are read against.
Two-to-four-unit homes, owner-occupied
The duplexes and small multi-unit homes of Collierville pair with the assistance on the first lien, up to the option’s unit limit. On a home at Collierville’s median value, the FHA minimum investment comes to about $17,000 — the figure the assistance is built to cover.
USDA-eligible areas
On Collierville’s rural edges, the USDA first lien and the second-lien options fit together, keeping cash to close near zero for buyers who qualify. The median owner-occupied home value in Collierville runs near $485,900 on the latest Census estimate.
Manufactured homes on owned land
For Collierville buyers choosing manufactured housing, the assistance is available on owned land, with the option set by the home’s width. About 20% of Collierville’s households rent — roughly 3,648 renter households, the pool the program exists for.
Homes that need work
In Collierville, a buyer can take on a fixer with a limited or standard renovation loan and the assistance attached, so the down payment and the repair budget are settled in one transaction. Collierville counts a population near 52K.
Established neighborhoods
In Collierville, a first home in an older neighborhood pairs with the program on an FHA first lien, and the assistance covers the down payment the buyer would otherwise have to save. Median household income in Collierville sits near $138,598 on the latest Census estimate.
New construction
A new-build home in Collierville pairs with the assistance as long as it is the buyer’s primary residence and the first lien is a government program. Median gross rent in Collierville is about $1,691 a month — the payment many renters already carry.
Submarket descriptions are general market context; the first lien’s approval, the option’s rules, and full underwriting decide every figure in a file.
Four ways Collierville buyers put down payment assistance to work.
From a first home to a small multi-unit building to an FHA refinance, down payment assistance in Collierville, TN solves a specific set of problems.
Cover closing costs too on the larger option
A Collierville buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Buy a home that needs work with a renovation mortgage
A Collierville buyer taking on a fixer pairs a limited or standard renovation first lien with the assistance; the help is figured on the purchase price, and the loan covers price plus repairs.
Buy a two-to-four-unit home and live in one unit
House-hacking in Collierville, TN pairs with the program when the buyer occupies a unit; the unit count decides which option applies, and the first lien carries the building.
Buy a first home with the down payment covered
The most common Collierville, TN file: an FHA first lien, the assistance covering the minimum investment, and the buyer’s own funds reserved for moving costs and reserves.
Size the assistance on a Collierville price before requesting a quote.
The calculator does what a loan officer’s first pass does for a Collierville file — sizes the minimum investment, applies the option, builds the FHA loan with mortgage insurance, and estimates the payment — using the current program figures and an editable benchmark rate.
Collierville FHA payment with assistance
Illustrative Collierville inputs; the calculator recalculates on every change.
Editable benchmark: 6.71% as of September 3, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $485,000 price near Collierville’s median owner-occupied home value (kept where an FHA first lien is realistic), the strongest assistance option offered in Tennessee applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Tennessee (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, four very different closings.
Same Collierville buyer, four closings: assistance on an FHA loan, the buyer’s own minimum investment, assistance on a USDA or HUD-184 loan, or a gift from family.
Assistance on a government loan, saving the minimum, or a gift.
The structure for a Collierville buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For a Collierville, TN buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
USDA and HUD-184 first liens pair with the forgivable and repayable options, which then cover closing costs and prepaids rather than a down payment the first lien does not require. For the USDA first lien, see the USDA loan program.
Choose by what you have: cash for the minimum investment, family who can gift it, a USDA-eligible property, or none of those — the assistance is for the last case, and the most common one.
What to prepare for a Collierville scenario review.
The documents a lender reads first on an assistance file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
Beyond the credit tier and the first lien, a handful of details decide which option a Collierville buyer can use — or whether the assistance attaches at all.
Use these checks to keep the Collierville file clean and fundable.
Three checks keep a Collierville assistance file on track: know which option the credit tier opens, know which first lien the property can carry, and know the category that opens the nothing-to-repay option.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: remember that the second-lien options carry no income limit.
- Do not stack: expect no combination with other assistance.
The option decides what you owe afterward
Choose the shape before the amount: the forgivable options cover the minimum investment and cost nothing to carry when the first lien stays current; the repayable option covers more and is repaid; a nothing-to-repay option released at closing where it is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
No stacking with other assistance
No option may be combined with another down payment assistance program, and the nothing-to-repay option does not combine with a high-balance first lien; one assistance option, one first lien, one closing.
Blended scores for two-borrower files
On the second-lien options, two occupying borrowers can qualify on the average of their representative scores when the higher earner has the higher score; the loan must carry an automated approval, and every borrower still needs a score.
The balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
From a Collierville pre-approval to keys with the assistance in place.
Lendmire runs a Collierville assistance file in a set order: pick the option, match the first lien, clear the property, close both liens together.
Pick the option
Lendmire reads the Collierville scenario against the options offered in Tennessee: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; a Collierville buyer’s income, credit, and reserves are read the way the first lien requires.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
The first lien and the assistance close at the same table — the assistance as a grant released at closing where offered, or as a second lien with its own loan number — and the Collierville buyer receives keys with the minimum investment covered.
A brokerage that pairs the assistance to the loan.
An assistance file rewards preparation, and preparation is what a brokerage built for first-time and moderate-income buyers provides.
The option, matched to the buyer
The nothing-to-repay option where it fits, the forgivable options where it does not, the repayable option where closing costs are the hurdle — chosen for the Collierville, TN buyer, not by default.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Collierville property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
A Collierville file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
Collierville down payment assistance FAQs
Plain answers to the questions Collierville buyers ask most about down payment assistance, before you request a review. Every file is underwritten individually; nothing here is a commitment.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
The second-lien options have none; the nothing-to-repay option has an area income limit that a qualifying occupation, a first purchase, or an underserved tract can substitute for.
What first-time home buyer programs are available in Collierville?
Four shapes paired with a government first lien: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in Tennessee.
Do I have to pay the assistance back?
A nothing-to-repay option is released at closing with no lien and no payment. The forgivable second liens also cost nothing — no interest, no payment — as long as the first lien stays current through the forgiveness period, and they pair with USDA and HUD-184 first liens as well as FHA.
What credit score do I need?
Each option has its own floor, starting in the low six hundreds on the nothing-to-repay option and stepping up on the forgivable and repayable second liens; every borrower needs a score, and two-borrower files may qualify on a blended score on the second-lien options. The snapshot shows the floors in force.
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a Collierville buyer eligible for more than one chooses the one that fits best.
What if my mortgage is above the county loan limit?
A high-balance first lien narrows the choice to the repayable options in Collierville, TN.
What is the repayable option and when does it make sense?
A second lien that amortizes over thirty years and comes due in the tenth year, with interest, a monthly payment, and its own disclosures. It makes sense when the help needs to reach closing costs and prepaids, when the first lien is high balance, or when the credit tier opens it but not the others.
Do I need a homebuyer education course?
Required on one option, optional on the rest; schedule it early if the nothing-to-repay option is the plan.
Can I use the assistance on a second home or a rental?
Primary residences only. Investment properties and second homes are outside the program.
The down payment is the hurdle. Let us clear it.
Start with the price, the first lien you expect, and your credit tier. No credit pull or commitment is required to request an initial scenario review.
This guide covers Collierville — for the statewide options, categories, and property rules, see Down Payment Assistance in Tennessee, part of Lendmire’s down payment assistance program.
Also in Tennessee: Memphis · Nashville · Kingsport · Johnson City · FHA Loans · USDA Loans