The city of Little Rock has announced a program to provide up to $5,000 for down payments by first-time homebuyers with qualifying incomes.

A buyer must agree to live in a home for five years, or repay the money. The incentive is 6 percent of the purchase price up to $5,000.  A down payment is sometimes the major obstacle to a purchase, the city said. The money comes from a federal housing program.

Requirements:

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.