property
The Shared Equity Scheme Explained Step by Step
Memphis first-time buyers can tap into the shared equity program to cut their upfront costs on homes priced under $300,000.
How we reported this
Memphis buyers entering the housing market for the first time can now apply for the shared equity scheme through the Shelby County Housing Trust, which covers up to 25 percent of a property purchase price starting this month.
The program arrives as Memphis median home prices reached $282,000 in the second quarter of 2026, according to Shelby County property records, a level that has pushed monthly mortgage payments beyond what many entry-level earners can cover without assistance.
Applications are processed at the Memphis Housing Authority office on South Main Street, with eligible properties concentrated in the Cooper-Young neighborhood and along the South Main historic district where modest single-family homes remain available under the cap.
County data shows 142 first-time buyer households closed on shared equity deals in the past fiscal year, with average household incomes at $62,000 and purchase prices averaging $245,000.
How the scheme works
Step one requires completing an online pre-qualification form through the Shelby County Housing Trust portal and attending a free homebuyer education class offered monthly at the Central Library branch downtown.
Step two involves selecting a home that meets program guidelines, securing a primary mortgage from an approved lender for the buyer portion, and signing an equity-sharing agreement that gives the county its stake in future appreciation.
Step three closes the transaction with the county contribution wired directly to the title company, after which the buyer pays property taxes and maintenance on the full home while repaying the county share only upon sale or refinance.
Next steps for applicants
Interested buyers should gather two years of tax returns and recent pay stubs before scheduling an intake appointment at the Housing Authority, where counselors review income limits set at 120 percent of area median.
Funds are allocated on a first-come basis each quarter, so early submission before the September 30 deadline improves chances of approval ahead of the next funding cycle.
This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.