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 | $290,000 | $352,000 |
Multi Family – 2 Units | $371,000 | $450,000 |
Multi Family – 3 Units | $449,000 | $545,000 |
- 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 | $54,150 | $47,824 |
2 | $61,900 | $54,656 |
3 | $69,650 | $61,488 |
4 | $77,350 | $68,040 |
5 | $83,550 | $73,780 |
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
For other questions, please email Niva Barros at nbarros@housingnetworkri.org.
