MEMPHIS, TN (WMC) - The Tennessee Housing Development Agency announced Tuesday that Parkway Village, zip code 38118, will be added to a list of neighborhoods in Memphis where homebuyers can qualify for down payment assistance toward owning a home.
"This is an area that was hardest hit when we had the economic downturn," said Regina Hubbard, a member of the THDA Board of Directors and also a Memphis-area realtor.
Parkway Village joins 17 other zip codes in Memphis and Shelby County where homebuyers can get up to $15,000 in help for down payments and closing costs. Parkway Village runs roughly from the south loop of I-240 to the Mississippi state line and from Memphis International Airport to Mendenhall.
"This is an area that we want to see make a comeback with home ownership," said Hubbard.
Hubbard said after the housing market crash of 2007, more out of area investors came in gobbled up Memphis properties, which hasn't been good for neighborhoods. Programs like Tennessee's Hardest Hit Fund down payment assistance help to increase the number of locally owned homes in neighborhoods that haven't been as quick to bounce back from the recession.
The state of Tennessee got $60 million from the U.S. Department of the Treasury in "Hardest Hit" funds to start the program statewide, part of a national initiative President Obama first established in 2010 after the housing market crashed.
In Shelby County, THDA financed 263 home loans in the 17 zip codes between March and the end of September of 2017. That's a 180% increase in loan activity since the year before, when the program wasn't in place.
Prospective homebuyers must take homebuyer education courses, provide proof of consistent income and have a credit score of 640.
"It's about creating better neighborhoods, it's about stabilizing our community," said Hubbard.
You can find information about qualifying for Tennessee's Hardest Hit down payment assistance here.
The city of Memphis also provides its own down payment assistance program in addition to the state's.
Qualifying zip codes in Memphis and Shelby County include: 38016, 38018, 38053, 38105, 38107, 38109, 38111, 38115, 38116, 38122, 38125, 38127, 38128, 38133, 38134, 38135, and 38141.