City of Woonsocket First Home Down Payment Assistance Program

City of Woonsocket First Home Down Payment Assistance Program is a forgivable loan for homebuyers in Woonsocket, Rhode Island, administered by City of Woonsocket Department of Planning & Development, Housing & Community Development Division. A HUD HOME-funded down payment assistance program administered by the City of Woonsocket that provides qualified first-time Woonsocket homebuyers with a no-interest loan of up to $7,500 toward the down payment on the purchase of their first home. The loan is structured as 50% forgivable (forgiven in a lump sum after a 5-year affordability period) and 50% deferred (repaid at sale, exchange, or transfer of title). Available first-come, first-served subject to funding availability. Up to $7,500 in no-interest down payment assistance; 50% forgiven after 5 years and 50% deferred with no monthly payments. Funding comes from U.S. Department of Housing & Urban Development (HUD) HOME Investment Partnerships Program.

City of Woonsocket First Home Down Payment Assistance Program offers up to $7,500 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 — City of Woonsocket Department of Planning & Development, Housing & Community Development Division determines any individual award.

City of Woonsocket First Home Down Payment Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Deferred 50% portion repaid at sale, exchange, or transfer of title; if sold or defaulted before the 5-year affordability period expires, the entire HOME assistance becomes due (recapture limited to net proceeds per 24 CFR 92.254). 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.

City of Woonsocket First Home Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. Property must be owner-occupied as primary/principal residence for the affordability period; eligible properties limited to residential single family 1-4 units; property must meet HUD/City Property Condition Standards before closing (City conducts a property condition assessment, including lead-based paint evaluation for pre-1978 homes); applicant must obtain an approved FHA, VA, or conventional first mortgage; HUD-approved homebuyer counseling course certificate required; no cash back to buyer; subsidy layering review required. Caveat: the income/purchase-price limits in the application package are dated 6/2022 and the City's current HOME page emphasizes the 'Safe at HOME' rehab program - applicants should confirm current funding availability and limits with the City. The City reserves the right to expand or terminate the program based on funding.

City of Woonsocket First Home Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income must not exceed 80% Area Median Income (AMI) for household size per HUD limits for Providence County (e.g., per the 6/2022 application package: 1 person $54,150; 4 persons $77,350; subject to change). Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of Woonsocket First Home Down Payment Assistance Program caps the purchase price as follows: Purchase price may not exceed HUD Homeownership value limits for Providence County (per application package: existing 1-unit $290,000, 2-unit $371,000, 3-unit $449,000, 4-unit $556,000; higher limits for new construction; subject to change).

City of Woonsocket First Home Down Payment Assistance Program serves homebuyers purchasing in Woonsocket, Rhode Island.

Applications for City of Woonsocket First Home Down Payment Assistance Program go through City of Woonsocket Department of Planning & Development, Housing & Community Development Division, which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.