LITTLE ROCK, Ark. — The City of Little Rock’s Department of Housing and Neighborhood Programs is encouraging low- and moderate-income first time homebuyers to apply for down payment assistance of up to $5,000.
To be eligible, the homebuyers must be purchasing property within the Little Rock city limits and agree to live in the home for five years (failure to do so requires repayment of the assistance). The total of the down payment assistance from the City of Little Rock to the first-time buyer may not exceed six percent of the purchase price, not to exceed $5,000.
“We know that the down payment can be the biggest obstacle to home ownership,” said Victor Turner, Director of Housing and Neighborhood Programs. “Through this program we are able to connect Little Rock residents to this federal assistance that can bridge the gap between being a renter and being a homeowner.”
Funds for the program are provided through the U.S. Department of Housing and Urban Development HOME Investment Partnerships (HOME) program, Turner said.
Additional program requirements are as follows:
- Buyer must document that annual household income (≤80% area median income), adjusted for family size, does not exceed the maximums.
- Buyer must be a first-time homebuyer (not have owned any residential property within last three years).
- Buyer must complete a homebuyer counseling course, acceptable to the City of Little Rock.
- The loan is forgiven in equal monthly installments over a 60-month period.
- Assistance shall be requested by applicant through a mortgage lender.
- Buyer must be approved for a first mortgage through a bank or mortgage company. The lender must a have a physical presence (i.e., location) in Arkansas.
- All repairs must be completed on the unit prior to approval of the assistance. No cash back at closing to borrower.
For more information the potential homebuyer should have the lender call Kevin Howard at 501-371-6825.