City of Little Rock Down Payment Assistance Program

City of Little Rock Down Payment Assistance Program is a forgivable loan for homebuyers in Little Rock, Arkansas, administered by City of Little Rock Department of Housing & Neighborhood Programs, Community Development Division. The City of Little Rock provides down payment and closing-cost assistance to low- and moderate-income first-time homebuyers purchasing an owner-occupied residence within the Little Rock city limits. Funded by HUD CDBG. Assistance is a zero-interest deferred forgivable loan. Up to 6% of the purchase price, not to exceed $5,000, as a zero-interest deferred forgivable loan; forgiven in equal monthly installments over 60 months (5 years). Funding comes from HUD Community Development Block Grant (CDBG).

City of Little Rock Down Payment Assistance Program offers up to $5,000 in assistance. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — City of Little Rock Department of Housing & Neighborhood Programs, Community Development Division determines any individual award.

City of Little Rock Down Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, or failure to own/occupy as primary residence during the 5-year affordability period. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Little Rock Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. Residency requirement: Property must be within the Little Rock city limits. the official program flyer states a $5,000 maximum (earlier materials referenced up to $10,000; current flyer caps at $5,000 / 6% of purchase price). Buyer must be a first-time homebuyer (no ownership in last 3 years), occupy the home as primary residence for at least 5 years, complete homebuyer counseling, and be approved for a first mortgage. First-mortgage lender must have a physical presence in Arkansas. No cash back to borrower at closing. Confirm current funding availability with the city.

City of Little Rock Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Annual household income at or below 80% of area median income, adjusted for family size. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of Little Rock Down Payment Assistance Program serves homebuyers purchasing in Little Rock, Arkansas.

Applications for City of Little Rock Down Payment Assistance Program go through City of Little Rock Department of Housing & Neighborhood Programs, Community Development Division, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.