Down payment assistance program announced to help first time home buyers purchase and occupy foreclosed residential properties in Rhode Island.
Rhode Island Housing, in partnership with the Department of Administration Office of Housing and Community Development, announce the Neighborhood Stabilization Program Home buyer Assistance program. (NSP home buyer assistance)
Eligible homes are 1-4 family foreclosed properties located in designated census tract areas in Providence, Pawtucket, Cranston, Woonsocket, Central Falls, Johnston, Warwick, West Warwick, North Providence, East Providence and Cumberland. Condominiums are not eligible under this program.
First time home buyers, and buyers who have not owned a home within the last 3 years, are able to obtain up to 20% of the purchase price in down payment assistance in the form of a deferred payment subordinate lien.
This deferred payment subordinate lien is forgiven after 5 years of owner occupancy. However, if the property is sold or transferred during the first 5 years of the mortgage, the lien, principle and accrued interest, is due and payable. Most home buyers stay in their properties for an average of 5-7 years.
Borrowers must meet income eligibility requirements. Under the NSP program, all adults over the age of 18 and who are not full time students, will have their income included to determine eligibility.
Borrowers must take an 8 hour home buyer education class offered through the Housing Network of Rhode Island. If purchasing a 2-4 family property, an additional Landlord/tenant home buyer education class is required.
The property must meet federal lead conformance requirements and a home inspection is required.
NSP eligible properties must be purchased at a minimum of 10% below fair market value of the property. This is usually determined by Fannie Mae, Freddie Mac or through a residential appraisal completed by a Rhode Island licensed appraiser.
Combine this program with the newly passed tax credit, home buyers in Rhode Island can now also get up to 10% of the purchase price or a maximum of $8,000 in tax credit. Now is the time to buy!
To learn more about this program or any of the other mortgage programs available, contact me at the number listed below.
Lynda Mckenzie
Mortgage Master Inc.
401.524.9796
“My most important loan is yours”.
NMLS#137627/RI license#137627
RI loan broker#95000655LBBo1/RI lender#20051876LLBo1
