The City of Cranston Department of Community Development Down Payment Assistance Program offers down payment assistance for first time buyers (as determined by HUD guidelines) who meet HUD’s HOME/CDBG income limits guidelines (up to 80% of API) and are purchasing a home in the City of Cranston. The buyer must complete a HUD approved 8 hour minimum homebuyers class. The amount of assistance is 50% of the required down payment but will not exceed $5000 and the buyer must match the assistance amount.

The recipient must sign a written agreement that the property must be their principal residence for 5 consecutive years after the closing date. This agreement is a grant, not a mortgage, but will be recorded as a lien against the property and all documentation must include this information. The lien is forgiven and discharged at the end of the 5 year period. If the buyer changes title, sells, refinances, changes the title, or no longer lives in the property as their primary residence within the 5 year period the full assistance amount must be repaid.

The buyer can not receive any cash at closing, any cash received is considered a refund of down payment funds and thus reduces the amount of the down payment assistance by that cash amount. The grant cannot be combined with any other Department of Community Development programs. It can't be used to pay points or reduce the interest rates.

A Lead Clearance certificate by a certified lead inspector must be provided before assistance is given. A representative of the department attends the closing to verify final HUD sheet and distribute the assistance to the closing attorney.