City of Cranston Down Payment Assistance Program

City of Cranston Down Payment Assistance Program is a forgivable loan for homebuyers in Cranston, Rhode Island, administered by City of Cranston Department of Community Development. Matching down payment assistance for income-eligible first-time homebuyers purchasing a home in the City of Cranston, administered by the city's Department of Community Development using CDBG/HOME funds. Provided as a forgivable grant secured by a recorded lien, forgiven after five years of owner-occupancy. 50% match of the required down payment (dollar-for-dollar), not to exceed $15,000, given at closing as a forgivable grant/lien that is discharged after 5 years of owner-occupancy. Funding comes from Federal Community Development Block Grant (CDBG) / HOME funds via U.S. HUD (City of Cranston).

City of Cranston Down Payment Assistance Program offers up to $15,000 in assistance. Amounts are the program's published maximums, not an offer — City of Cranston Department of Community Development determines any individual award.

City of Cranston Down Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Entire assistance must be repaid in full if, before the end of the 5-year period, the recipient sells, refinances, changes title, or no longer occupies the property as principal residence. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Cranston 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. Property must be in the City of Cranston; administered first come, first served; recipient must complete a HUD-approved minimum 8-hour homebuyer class; buyer must obtain a State Lead Inspection / Lead Safe Certificate before assistance; no cash to buyer at closing; cannot be combined with the city's Closing Cost Assistance Program; cannot be subordinated and cannot be used to pay points or reduce interest rate; closing agent must furnish the CDBG office with the proposed settlement statement at least 3 business days before closing. A written 5-year owner-occupancy agreement (not a mortgage) is recorded as a lien at the City Clerk. NOTE: the department web summary lists 'not to exceed $5,000,' but the current program guidelines PDF revised November 2024 states 'not to exceed $15,000'; the PDF is the controlling document.

City of Cranston Down Payment Assistance Program sets its income limit as follows: Income eligibility determined per HUD HOME/CDBG income limits by household size (low- to moderate-income). 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 Cranston Down Payment Assistance Program serves homebuyers purchasing in Cranston, Rhode Island. The program gives priority to designated target areas, so the address matters as well as the county.

Applications for City of Cranston Down Payment Assistance Program go through City of Cranston Department of Community Development, 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.