How do I find out which properties meet the criteria of the program?
The Office of Community Relations maintains information on all properties in the area. Weekly update of newly listed properties are by visiting the Elmhurst Home Ownership Program website (www.providence.edu/elmhurst)
What is the first step?
Before looking, meet with a loan mortgage officer to get prequalified. The officer will run a credit check and determine your price range. Adjustments to your income qualifications will be made if you are purchasing a multifamily property with rental income. If you are a first-time homebuyer or have not owned a primary residence within the last three years, you may qualify for a RIH mortgage. If so, contact Millie Wright, our program's dedicated RIH loan officer, at 401-450-1308.
What if I don't show enough income for a loan? Can I have a co-signer and still get the grant?
As long as you will be living in the property, that's fine. However, be aware that some financial institutions will require the co-signer to live in the property.
Do I need a real estate agent?
That's a personal decision. Agents can be very helpful, especially when dealing with a seller.
What do I do if I see a property I like that is not listed for sale?
Check with the Office of Community Relations to see if it is owned by an absentee landlord. If so, you may want to contact the owner directly or have your agent call to see if there is motivation to sell.
What's the next step after prequalifying and finding a home?
Once you have agreed on a sales price with the seller, the next step is to have a sales agreement drawn up. This should be done by either a lawyer (usually the seller's lawyer) or a real estate agent. You should have your own lawyer review it if possible. The agreement should include: projected mortgage approval and closing dates, down payment amount, and type of loan.
Contingencies should include: building inspection (conducted by a qualified/licensed person), mortgage approval, vacancy of units (if it's an issue), and whatever else needs to be done prior to your closing (repair of systems, cleaning, etc.). Should major repairs be needed, you may want to adjust your purchase price accordingly (if the seller agrees to it) or have the seller make the repairs prior to the closing. Be sure to ask for documentation on those repairs. Both the lender and the College (Community Relations) will need a copy of your sales agreement in order to proceed with the necessary paperwork.
Must I use Rhode Island Housing as a lender?
No, but if you are a first-time homebuyer, you may find their rates and package very competitive. Should you use another lender, you would not benefit from the additional $1,000 grant and other RIH programs available to the Providence College community.
Do I have to be a first-time homebuyer to participate?
No. If you are currently renting and have not owned a home or held ownership interest in a primary residence for at least threee years, you may qualify for a RIH loan. However, if you are selling your home and moving into the area, and would like to go through the program, you may have to seek another lender. The $3,000 Providence College grant would still be available to you as long as you choose a home that meets program guidelines.
When and how do I get the grant money?
The Providence College grant is forwarded to the attorney conducting the closing. It will be recorded on your deed.
If my property needs rehabilitation, are there programs to assist me financially?
Rhode Island Housing offers a variety of low-interest rehabilitation loans. You should discuss your rehabilitation options with your loan officer at application. Whatever option you choose, you can purchase a home and obtain rehabilitation funds all in a low-interest rate loan.
If purchasing a multifamily property, do I need to take occupancy immediately after the closing, or can I allow leases to expire before moving in?
You must take occupancy immediately. If purchasing a multifamily home, there should be a clause in your sales agreement noting that at least one floor must be vacant prior to closing. You may want to reference vacancy and/or leases for the other rental floors in your sales agreement.
Suppose there's a structural problem with the property that is discovered after the closing?
The best way to avoid this problem is to have a reputable building inspector give you a written evaluation of your property prior to the closing.
What if I move out of the property or sell it before the five-year grant period has expired?
You must repay the Providence College loan in full.
What about the Rhode Island Housing grant?
RIH also requires that you live in the property for five years. The grant is a forgiven loan.
Do you offer seminars for first-time homebuyers and landlords?
RIH offers and requires all loan applicants, including prospective landlords, to take their educational courses.
For more information, call the Office of Media and Community Relations at 401-865-1887.
Email: ccentazz @providence.edu