DOWN PAYMENT AND CLOSING COST
ASSISTANCE PROGRAM

Purpose
To provide an incentive for qualified first and second-time homebuyers to purchase homes in Providence neighborhoods.

Eligible Residential Properties
Single-family and multi-family residences (including condominium units) located within the city limits of Providence are eligible.

Financial Assistance
Qualified eligible homebuyers may receive up to a $2,500 loan towards the down payment and/or closing cost for the purchase of a home. First-time homebuyers who meet application requirements and income eligibility limits will qualify. Financial assistance may also be available for any second-time homebuyer, provided that (a) all application requirements are met; (b) income eligibility limits are met; (c) that the borrower(s) will occupy the home as his/her/their primary residence; and (d) that the home is located within specified Census Tracts in the City of Providence.

Financial assistance will be available on a first-come-first-served basis, until program funding is exhausted.

Applicant Eligibility - (HUD 2013 Median Income)
The program will establish a loan floor requiring applicants to make a minimum of 30% of the Rhode Island Median Annual Income established by HUD; additionally, applicants' income may not exceed 100% of the Rhode Island Median Annual Income.

Click here for a table of the current RI Median Annual Income Requirements.

Note: These guidelines are subject to change at any point in time. Current RI Median Annual Income requirements can be found here.

Loan Terms and Conditions
Loans will carry a zero percent interest (0%) rate and will be due ten (10) years from the date of purchase or due on sale, whichever first occurs. The loan will start to amortize as of the sixth year anniversary of the commencement of the loan (creating an annual payment schedule based on amount loaned). The actual amount loaned will equal the total of all amounts outstanding in order to close the transaction, but shall not exceed $2,500.00. Loans will not be permitted for principal reduction. There will be no annual cap on the number of loans issued.

Program eligibility and availability may be modified or discontinued at any time in the discretion of the Providence Redevelopment Agency, as Trustee of the Providence Housing Trust.

Second-time homebuyer applicants, please ensure that your property is located within one of the eligible City of Providence census tracts: 2, 3, 5, 6, 7, 9, 10, 12, 13, 14, 17, 19, 20, 22, 25, 26, and 27. To determine if your property is within one of the City's eligible tracts, click here.

Note: The program guidelines herein will be effective for applicants applying on or after July 1, 2013.

Pre-Purchase Education
Participants are required to attend the Housing Network of Rhode Island/members Homebuyer Education class to the HUD standard (8 hour minimum). Program information can be found by calling: (401) 521-1461.

Required Purchaser(s) Documentation
In order to streamline processing of applications, the Department of Planning and Development staff requires that all documentation must be presented with your application.

Incomplete applications cannot be processed.

Please mail or drop off application along with photo copies of the following required documents:

• Commitment letter from a lending institution;
• Purchase & Sales Agreement (Buyer and Seller signatures required);
• Two (2) recent pay stubs (including co-borrower, if applicable);
• Documentation of other sources of income, i.e. Benefit Letter;
• Homebuyer Education Certificate from the Housing Network of RI;
• Photo ID & Social Security Card;
• Last two (2) years of Federal Income Tax Returns, signed;
• If self-employed last two (2) years income taxes with year to date profit and loss statement;
• Closing Attorney's Name - Phone Number and Closing Date.

Important: The Providence Redevelopment Agency Housing Trust must be notified Thirty Days (30) prior to closing date in order for funds to be available. Checks cannot be picked up until the day of closing.

Download a copy of the application here.

Contact Information:
For questions or to submit a completed application contact:

Providence Redevelopment Agency Housing Trust
444 Westminster Street - Suite 3A
Providence, RI 02903
Attn: Paula Baron
(401) 680-8400