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

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.

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.

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.

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.

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.

You can only apply for the program with a co-signer if both of you are going to reside in the property. The program does not allow nonresident co-borrowers.

It depends on the terms of the additional DPA program.

Yes. The required $1,500 contribution by the buyer can be met by the combination of any of the following:

Earnest money deposit funds, the upfront cost of any required education classes, upfront appraisal fees, upfront inspection fees, or cash required to close requirements.

No, this program is strictly for buyers looking to purchase properties in the City of Providence.

If the property is sold or refinanced prior to the expiration of the restriction period, the full amount of assistance is required to be repaid. Assistance is provided as a zero-percent loan. Repayment would equal the amount of assistance provided.

 

For other questions, please email Niva Barros at nbarros@housingnetworkri.org.

   

 

Down Payment Assistance Program Guidelines [ENG]
Down Payment Assistance Program Guidelines [SPAN]
Underwriting Template (Downloadable .xlsx Form)
Sample Right to Withdraw Form
Verification of Employment Form