Down Payment & Closing Cost Assistance Program

The Down Payment & Closing Cost Assistance Program

The Housing Network of Rhode Island, in partnership with the City of Providence, provides up to $20,000 of Down Payment and Closing Cost Assistance to income eligible homebuyers purchasing in the City of Providence.

Application fee: $200

To apply for this program, applicants must:

Have a signed Purchase and Sales agreement
Contribute at least $1,500 of their own funds to the transaction
Use the home as their primary residence
Meet the programs current underwriting standards for front end (38%) – and back- end (45%) ratios
Be purchasing a single, two or three family home in the City of Providence at a sales price that does not exceed the following limits:

Unit #	Existing Homes	New Construction
Single Family	$333,000	$406,000
Multi Family – 2 Units	$427,000	$520,000
Multi Family – 3 Units	$517,000	$629,000

Fall within the program’s income guidelines for their household size
*For eligibility purposes, all persons residing in the owner occupied unit and all sources of income are counted

Household Size	To qualify for up to $10,000 gross household income cannot exceed	To qualify for up to $20,000 gross household income cannot exceed
1	$57,350	$51,940
2	$65,550	$59,360
3	$73,750	$66,780
4	$81,900	$74,200
5	$88,500	$80,150

Prior to closing, eligible applicants will be required to:

Complete 8 hours of HUD Approved Homebuyer Education
If purchasing a multi-family, complete a 3 hour Landlord class AND the 3 hour Lead Hazard Awareness seminar

Terms of repayment/ forgiveness of assistance provided:

Funds will be provided at the closing as a forgivable loan by the City of Providence
Loan will be forgiven in full after the completion of the compliance period*
*5 years if assistance is less than $15,000 or 10 years for $15,000 or more of assistance
Owner will be required to certify annually that the property remains owner occupied
Sale or refinance any time during the compliance period will require repayment of the assistance in full

Frequently Asked Questions

Is the application fee refundable?

The fee is only refundable if:

• The applicant successfully closes on the property identified within the application.

• The home does not pass the City of Providence inspection and the seller is unwilling to make necessary repairs to successfully pass inspection.

When can I apply for the Down Payment Assistance program?

To apply for this program, applicants must:

• Have a signed Purchase and Sales agreement for a home in the City of Providence.

• Contribute at least $1,500 of their own funds to the transaction.

Do I have to be a first time homebuyer to qualify for the program?

No, you do not have to be a first time homebuyer to apply for the DPA program; however, you cannot own another property at the time you purchase the DPA assisted unit.

Do I need to take the Homebuyers education class before applying?

Yes, an 8-hour HUD-approved homebuyer education class is required.

If purchasing a multi-family property, you must also complete a three (3) hour Landlord class and a three (3) hour Lead Hazard Awareness Seminar.

How long is the application review process?

The entire application process may take between 45 to 60 days to complete. Once the application, including all of the required documentation is deemed complete, the Housing Network of Rhode Island will review the application.

Clients will be notified by mail or email as to the outcome of their application. The applicant must allow at least (30) days’ from receipt of the approval letter when scheduling their closing. This timeframe allows adequate time to process the Down Payment & Closing Cost Assistance loan documents and release of funds.