City of Little Rock Down Payment Assistance Program

What is 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).
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD Community Development Block Grant (CDBG).

How much assistance does it provide?

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.

Do you have to pay it back?

City of Little Rock Down Payment Assistance Program is forgiven after 5 years, so a buyer 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.

Who qualifies?

City of Little Rock Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

Where does it apply?

City of Little Rock Down Payment Assistance Program is a federal program, so it is not limited to Arkansas.

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact City of Little Rock Department of Housing & Neighborhood Programs, Community Development Division to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.