Down Payment Grants Available in the City of Pine Bluff

The City of Pine Bluff Economic and Community Development Department is committed to making homeownership more accessible and affordable for low- to moderate-income families. To achieve this, they have established the Home Buyer’s Assistance Program, which aims to alleviate the financial challenges often faced by potential homebuyers, particularly in covering the upfront costs associated with a mortgage transaction.

Available Assistance: The Home Buyer’s Assistance Program offers substantial financial support to income-eligible applicants. It provides up to $2,000 for the down payment and up to $3,000 for eligible closing costs (excluding prepaid items). This assistance is crucial in helping families purchase a home on the open market. However, it’s important to note that applicants are responsible for any closing costs exceeding $3,000. The funds from this program are offered as a five-year, zero-interest, deferred loan. This loan does not require repayment unless the property is sold, transferred, refinanced, or disposed of within five years, making it a highly beneficial option for long-term homeowners.

Eligibility: To qualify for the Home Buyer’s Assistance Program, families must meet certain income criteria. The program is designed for low-to-moderate income families whose annual household income does not exceed 80 percent of the area median income for Pine Bluff. The program is versatile, allowing funding to be used for purchasing homes on the open market, HUD-repossessed homes, or homes that are “for sale by owner” (FSBO). Applicants must comply with the regulations of the HUD HOME Program and the City of Pine Bluff requirements. Additionally, they are required to contribute a minimum of $500 towards the down payment, which is separate from the closing cost contribution.

Income Limits: The program sets specific income limits based on household size, as follows:

• 1 person: $27,000
• 2 persons: $30,850
• 3 persons: $34,700
• 4 persons: $38,550
• 5 persons: $41,650
• 6 persons: $44,700
• 7 persons: $47,850
• 8 persons: $50,900

Household income includes all income received by members aged 18 years or older who will be living in the home, regardless of whether they are on the mortgage.

In summary, the Home Buyer’s Assistance Program by the City of Pine Bluff Economic and Community Development Department is a vital initiative for families in Pine Bluff. By providing financial assistance for down payments and closing costs, along with a deferred loan option, the program addresses one of the major barriers to homeownership. Its focus on low-to-moderate income families and the requirement for a personal contribution towards the down payment ensures that the program supports responsible and sustainable homeownership in the community.