Yes, the new stimulus package was approved for Memphis and Shelby County to $271,050. i spoke to several lenders to confirm this and they are waiting for the green light, which should be any day. The lift will make the FHA route the way to go for those with little downpayment money, stretched out ratios and reasonable credit.
The Modernization Program is still waiting for approval and that would allow other loan programs to work in conjuction with the FHA loan for downpayment assistance, THDA, etc., to either make the loan with a lower interest rate, funded closing cost (paid closing cost) or partically no money down.
Be sure to get with a Realtor that is well versed in FHA guidelines, contract, inspections, appraisals and addendums. They can lead you through the process with low stress. I have practiced real estate for over 12 years and in the begining of my career, that was all we ever did. The past 5-6 years, conventional loans were more previlent and there are many agents who are unfamiliar on how to navigate through this type of transaction. Many, because of their inexperience might try to discourage any FHA product which in reality can be extremely beneficial in helping a buyer to get the best deal out there.