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City of Providence Down Payment & Closing Cost Assistance Program

Housing Network of Rhode Island (in partnership with the City of Providence) · Providence, Rhode Island

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Assistance

$2,500–$20,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven once the program's conditions are met

What is City of Providence Down Payment & Closing Cost Assistance Program?

City of Providence Down Payment & Closing Cost Assistance Program is a forgivable loan for homebuyers in Providence, Rhode Island, administered by Housing Network of Rhode Island (in partnership with the City of Providence).

  • Forgivable down payment and closing cost assistance for income-eligible first-time homebuyers purchasing a 1-3 family home or condominium in the City of Providence, administered by the Housing Network of Rhode Island using City of Providence HOME funds. Provided as a 0% interest, non-amortizing deferred loan that is forgiven if the property is owner-occupied through the compliance period.
  • Up to $20,000 (income at/below 70% AMI) or up to $10,000 (income above 70% but below 80% AMI) toward down payment and closing costs as a 0% interest forgivable loan.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal HOME Investment Partnerships Program funds (via City of Providence).

How much assistance does it provide?

City of Providence Down Payment & Closing Cost Assistance Program offers between $2,500 and $20,000 in assistance.

  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — Housing Network of Rhode Island (in partnership with the City of Providence) determines any individual award.

Do you have to pay it back?

City of Providence Down Payment & Closing Cost Assistance Program is a forgivable loan, so the balance is forgiven once the program's conditions are met.

  • Repayment is triggered by Full repayment required if the property is sold or refinanced before expiration of the compliance period, or if it ceases to be owner-occupied.
  • The assistance is recorded in second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Providence Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course
  • Must have a signed Purchase and Sales agreement; must purchase a 1-, 2-, or 3-family home or condo in Providence; must contribute $1,500 of own funds; if buying a multifamily, must complete a 3-hour Landlord class and a 3-hour Lead Hazard Awareness Seminar; property must pass a City home inspection (score 80+) and a visual lead-based paint inspection; requests below $2,500 not considered; $200 application fee (payable to City of Providence, refundable only in limited cases); no cash back to buyer at closing. Compliance period: 5 years if assistance under $15,000; 10 years if $15,000 or more. Must satisfy HUD front-end (38%) and back-end (45%) ratios.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of Providence Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% of Area Median Income (AMI) by household size; tier of assistance set at 70% AMI breakpoint.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Providence Down Payment & Closing Cost Assistance Program caps the purchase price as follows: Existing homes: 1 unit $333,000 / 2 units $427,000 / 3 units $517,000. New construction: 1 unit $406,000 / 2 units $520,000 / 3 units $629,000.

Where does it apply?

City of Providence Down Payment & Closing Cost Assistance Program is a federal program, so it is not limited to Rhode Island.

  • The program gives priority to designated target areas, so the address matters as well as the county.

How do you apply?

Applications for City of Providence Down Payment & Closing Cost Assistance Program go through Housing Network of Rhode Island (in partnership with the City of Providence), which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact Housing Network of Rhode Island (in partnership with the City of Providence) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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