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 $254,000 $315,000
Multi Family – 2 Units $325,000 $404,000
Multi Family – 3 Units $394,000 $489,000
  • 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

Forms

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