You may not be aware of this, but Cranston has a few great programs for income eligible first time home buyers that can really help people move from renting to owning their own home. There are income guidelines as well as restrictions on having previously owned a home, but for those that are eligible, this can really make the difference between being able to own a home and invest in the community. These programs are limited to homes for sale in Cranston. Here is some more info about the Cranston first time home buyer assistance programs.
This program is available to first time income eligible home buyers to help defray some of the fees incurred at closing. This five year grant will provide up to $3,000 toward closing costs. This program is designed to financially assist income-eligible people who are purchasing a home in the City of Cranston. The program will be administered on a first come first serve basis. An applicant must be a first time home buyer and complete a HUD approved eight (8) hour minimum home buyers class.
Applications are taken in office and processed within 48 hours. However, we do require three (3) business days prior to the closing date to review the proposed settlement sheet (HUD) to determine grant amount. Arranging for communication of the settlement statement to the CDBG office will be the sole responsibility of the lender or its closing agent. Cranston’s CDBG office will make the check payable to the client and the closing agent. The amount of the check will be the lesser of the actual cost of the covered services or a Three Thousand dollar ($3,000.00) cap.
Costs covered by this grant program are as follows:
- Appraisal Fees
- Credit report
- Title search
- Cost of Title Insurance Policy, including survey deletions
- Flood Certification fee
- Bank processing fees
- Closing Attorney’s fees
- Recording fees
- Some miscellaneous charges
The Down payment assistance program provides 50% of the required down payment, not to exceed $5,000. This matching fund program is available to first time income eligible homeowners but can not be combined with the Closing Cost Assistance Program. This program offers financial assistance to income-eligible people who are purchasing a home in the City of Cranston. The program will be administered on a first come first served basis and complete a HUD approved eight (8) hour minimum home buyers class.
A recipient must agree, in writing, that he/she will live in the purchased property as his/her principal residence for a period of five consecutive (5) years after the assistance is provided (the closing date). This written agreement (not a mortgage) will be recorded as a lien against the property at the office of the City Clerk by the closing attorney. Applications are taken in office and processed within 48 hours after all the documents are received in the office. However, we do require three (3) business days prior to the closing date, for the closing agent to furnish Cranston’s CDBG office with a copy of the proposed settlement statement (HUD sheet). Income eligibility will be determined according to HUD’s HOME/CDBG income limits guidelines. The amount of assistance available to an applicant is 50% of the required down payment, not to exceed Five Thousand Dollars ($5,000.00). (We will match the down payment from the borrower dollar for dollar, but not to exceed $5,000.) The down payment from the borrower must be clearly stated on all necessary documentation, such as the Purchase and Sale Agreement and the final HUD sheet. The borrower can not receive any cash at the closing. Any cash received by the borrower at the closing will be considered a refund of the borrower’s own down payment funds and will therefore reduce the Department’s down payment assistance by an amount equal to the cash received by the borrower.
This program provides low-interest loans to income eligible Cranston homeowners to assist them in making needed repairs and improvements to their homes and to correct code violations. Program is available for single family to three family buildings and property must be owner occupied. Typical improvements include roofs, vinyl siding, replacement windows, doors, and gutters. Depending on an applicant’s household income, this loan program includes a 0% deferred or a 2% interest loan with a 15 year amortization.
This 5 year Grant Program will provide 50% of the cost of rehabilitation work completed, but not to exceed $7,500.00. The remaining cost will be written as either a 2% loan or a 0% deferred loan according to household size and income. Two (2%) percent interest loans Payable in 180 monthly payments (15 years) The applicant’s total family income cannot exceed 80% of the median income.
Zero (0%) percent deferred interest loan guidelines
- The applicant’s total family income cannot exceed 50% of the median income.
- Loan to be paid in full upon change in ownership or title.
Funds may be used for the following:
- roof replacement
- vinyl siding
- vinyl replacement energy saving windows
- exterior doors
Funding is made available through the U.S. Department of Housing and Urban Development.
FOR FURTHER INFORMATION ABOUT THE CRANSTON FIRST TIME HOME BUYER PROGRAM OR TO APPLY FOR THESE PROGRAMS,
PLEASE CALL FRAN FALCONE AT 401-461-1000 EXT 7205 or E-Mail at [email protected]
The above article, “Cranston First Time Home Buyer Assistance Programs”, has been provided by Stephen Perrino as part of our homeowner tips series. Stephen is a professional, full-time Realtor with PAIVA Realty Group and has helped many people buy and sell homes throughout the entire Greater Providence area for many years! If you are in the market to BUYor SELL a home, he would love to connect with you and can be reached via email at [email protected] or by phone at 401-206-8907.
Are you thinking of selling your home? I’m very good at marketing homes to sell quickly, and for more money. If you’re a first-time home buyer then you’ll be in good hands. I’ve helped countless first-time home buyers through the entire process of buying that first home! I have a real passion for helping folks buy and sell homes here in the great state of RI and I would love to connect with you!
I help people buy and sell real estate in the following Providence area cities & neighborhoods: Cranston, Providence, Warwick, East Side of Providence, East Providence, West Warwick, Scituate, Johnston, East Greenwich, Exeter, West Greenwich, Smithfield, Lincoln, North Providence, Pawtucket, Barrington, Tiverton, Newport, Jamestown, North Kingstown, Narragansett, Charlestown, Hopkinton, Warren, Coventry, Richmond, South Kingstown, Middletown, Portsmouth, Little Compton, Cumberland, Western Cranston, Garden Hills, Glen Hills, Woodridge, Hope, Garden City, Potowomut, Warwick Neck, Alpine Estates, Knight Farms, Dean Estates.