City of Cranston First-Time Homebuyers Closing Cost Assistance Program

What is City of Cranston First-Time Homebuyers Closing Cost Assistance Program?

City of Cranston First-Time Homebuyers Closing Cost Assistance Program is a forgivable loan for homebuyers in Cranston, Rhode Island, administered by City of Cranston Department of Community Development.

• A CDBG-funded grant program run by the City of Cranston Department of Community Development that helps income-eligible first-time homebuyers purchasing a home within the City of Cranston defray closing costs. The assistance is provided at closing as a five-year forgivable grant (recorded as a written agreement/lien at the City Clerk's office) and becomes a full grant after the buyer resides in the home as a principal residence for five years. It is separate from, and cannot be combined with, the City's Down Payment Assistance Program.
• Up to $3,000 toward closing costs.
• Forgivable after 5 years of owner-occupancy.
• Covers appraisal, credit report, title search, title insurance, flood certification, bank processing, closing attorney, and recording fees.
• First-come, first-served.
• Applications processed within 48 hours.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal CDBG (Community Development Block Grant) funds from HUD, administered by the City of Cranston.

How much assistance does it provide?

City of Cranston First-Time Homebuyers Closing Cost Assistance Program offers up to $3,000 in assistance.

• Buyer contribution: Not specified in program guidelines.
• Amounts are the program's published maximums, not an offer — City of Cranston Department of Community Development determines any individual award.

Do you have to pay it back?

City of Cranston First-Time Homebuyers Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by If, before the end of the five-year period, the recipient sells the property, refinances, changes title, or no longer occupies it as a principal residence, the entire amount must be repaid in full to the Cranston Department of Community Development.
• 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 Cranston First-Time Homebuyers Closing Cost 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 Cranston First-Time Homebuyers Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Income eligibility determined per HUD HOME/CDBG income limits (80% of area median). Cranston limits effective October 3, 2025 (80% of median): 1 person $64,050; 2 $73,200; 3 $82,350; 4 $91,450; 5 $98,800; 6 $106,100; 7 $113,400; 8 $120,750.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Cranston First-Time Homebuyers Closing Cost Assistance Program caps the purchase price as follows: Not specified in program guidelines.

• Eligible property types include Single Family.

Where does it apply?

City of Cranston First-Time Homebuyers Closing Cost Assistance Program is a federal program, so it is not limited to Rhode Island.

How do you apply?

Applications for City of Cranston First-Time Homebuyers Closing Cost Assistance Program go through City of Cranston Department of Community Development, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer class, minimum eight (8) hours; certificate of completion required.

2. 2

   Contact City of Cranston Department of Community Development to reserve funds

   Funds are reserved through First-come, first-served; applications taken in office and processed within 48 hours after all documents received; lender/closing agent must furnish the preliminary Closing Disclosure (ALTA) at least 3 business days before closing, 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.