New program offers $25k grants for first-time homebuyers

This article was written and originally published by WREG News Channel 3.

MEMPHIS, Tenn. — A program aimed at helping first-time homebuyers is extending its reach.

The Federal Home Loan Bank of Cincinnati and United Housing, Inc. are expanding the Rise Up Program to benefit potential homebuyers in Memphis and West Tennessee.

A total of up to $2 million in funding is available in Memphis and Western Tennessee.

The Rise Up program will offer $25,000 grants to be used for down payments, closing costs, or principal reduction assistance for qualifying households.

The program is for first-time, first-generation homebuyers. There are no fees or strings attached, says Trudie McClelland with United Housing.

She says this is a unique and important initiative when it comes to increasing access to homeownership and lowering the barriers.

McClelland says it’s about building generational wealth.

“At the end of the year, what do you have to show for it? You know, you’ve paid probably 12 to $1,500 a month for rent, and that’s like $18,000 of your income. And you could have been to build an equity and a home,” McClelland.

Data shows that homeownership in Memphis is 46% lower than the national average of 65%.

Buying a home can be a stressful process and on average, that process takes about six months.

According to the Memphis Area Association of Realtors, home sales for September increased 13% from a year ago, with 1,460 sales total.

To help folks answer the questions of “How much do I have saved for a down payment” or “Can I afford my desired neighborhood?”  we must first know the importance of financial literacy.

“It’s really important to take a look at your credit score, take a look at your savings account, take a look at what your monthly expenses are, and decide how much of a house note you think you want to afford, and then sit down and talk with a counselor and let them help you get a better understanding of the best direction for you,” said McClelland.

The first-time homebuyer market share decreased to a historic low of 24% in 2024, according to the National Association of Realtors.

High housing costs and existing debt could be to blame.