The UDDC strengthens neighborhoods and improves the quality of life by making housing and neighborhood improvements. The first-time Homebuyer Program builds new housing or repairs existing housing to attract new homeowners to the district.
The UDDC has a program especially designed to help eligible first time home buyers purchase a new or recently rehabilitated home by the UDDC within the University District. The UDDC program provides assistance with down payment, closing costs, and purchase price reduction.
What is a first-time home buyer?
A first-time home buyer is a person who has not financed a home within the last three years prior to the date of application to the UDDC program. All participants in the program must sign documentation attesting no prior ownership of a home within the preceding three year period. A displaced homemaker, a person who was previously married and owned a home with a spouse but does not currently have possession of the property, may be eligible to qualify as a first-time home buyer.
Down Payment and Closing Cost Assistance
Households meeting income qualifications are eligible to receive down payment and closing cost assistance to purchase a home constructed or renovated by the UDDC. The amount of the down payment assistance is provided is based upon need. The maximum amount of assistance available for down payment and closing costs is $20,000.
Home Price Reduction (Development Subsidy)
The UDDC can work to reduce a home buyer’s monthly housing costs by subsidizing the sales price of the house. The UDDC offers a home to the buyer at a lower sales price that presents a lower burden to home buyers. The development subsidy is the difference between the cost to develop housing and the market price. The subsidy is a grant from the UDDC to the homeowner.
To qualify for the UDDC program buyers must:
- Be first-time home buyer
- Have an annual income that is not more than 80% of area median income
- Purchase a home that has been constructed or renovated by the UDDC within the University District Development Area
The UDDC will offer rehabilitated and newly constructed homes for purchase. To be eligible for the program, the prospective buyer’s annual income must not exceed 80% of the area median income, adjusted for family size. Eligibility determinations are based on anticipated income. The previous year’s tax return does not reflect next year’s earnings. Current income information such as pay stubs and benefit receipts are used to determine income.
Process for applying for the First Time Home Buyer Program:
- If you are a first time home buyer whose income is within the UDDC program guidelines, the first step is to contact a participating lender to receive a pre-approval. The lender will determine the maximum mortgage amount for which you qualify.
- Next you will need to attend an approved Home Buyer Education class. A list of eligible agencies can be obtained from the UDDC office.
- Once the pre-approval process is completed and maximum home price is determined, you may identify a home to purchase. If interested in an existing UDDC home, you may contact the UDDC to make your selection known.
- Then you will provide evidence of your pre-approval and Home Buyer Education certificate to UDDC staff. During this meeting you will select a home developed by the UDDC.
- Your final step is to complete the mortgage process. Once complete, you will receive the keys to your first home!
The First Time Homebuyer Program is financed through the City of Little Rock with funds from the U. S. Department of Housing and Urban Development (HUD) HOME Program.