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. Funding comes from Federal CDBG (Community Development Block Grant) funds from HUD, administered by the City of Cranston.

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

City of Cranston First-Time Homebuyers Closing Cost Assistance Program is forgiven after 5 years, so a homebuyer 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.

City of Cranston First-Time Homebuyers Closing Cost Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Uses HUD first-time homebuyer definition: no ownership of a principal residence in the 3-year period ending on the purchase date; plus standard HUD exceptions (single parent, displaced homemaker, non-permanently-affixed residence, non-code-compliant property). On credit, the program states: Not specified in program guidelines. A homebuyer education course is required, through HUD-approved homebuyer class, minimum eight (8) hours; certificate of completion required. Residency requirement: Property being purchased must be located within the City of Cranston; buyer must occupy it as principal residence for 5 years. Buyer must be a HUD-defined first-time homebuyer, income-eligible at 80% AMI, complete a HUD-approved 8-hour homebuyer class, purchase within Cranston, occupy as principal residence for 5 years, and obtain a State Lead Safe Certificate before disbursement. Grant capped at $3,000; check made payable jointly to client and closing agent. Cannot be combined with the City's Down Payment Assistance Program; no cash back at closing.

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.

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.

City of Cranston First-Time Homebuyers Closing Cost Assistance Program serves homebuyers purchasing in Cranston, Rhode Island.

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. 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. 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.