Funding &

Applicant Requirements

FUNDING:

"OMNI Development Corporation has received funding from the United States Department of Housing and Urban Development under the Nehemiah program. Under this program, OMNI will provide a $15,000 "silent second" mortgage in order to reduce monthly costs for eligible buyers."

Along with many other Providence non-profit housing corporations, OMNI utilizes the Home-buyer Education Loan Program (HELP), which is a partnership of BankBoston, Rhode Island Housing & Mortgage Corporation, and Federal Home Loan Bank of Boston with affiliated housing corporations. "One of the biggest obstacles to home ownership is saving the funds needed for down payments and closing costs," said Marc A. Leone, regional manager of BankBoston's mortgage division, "this program helps to eliminate that barrier by providing assistance to low-income families who have demonstrated an ability to save, but still lack the necessary funds." The down payment is given through an interest-free second mortgage that does not need to be repaid until borrowers sell, refinance, or transfer ownership of these homes. Subsequently, as the loans are repaid the money will be reused in the form of down payment assistance for others.

QUALIFICATIONS:

In order to qualify, applicants must meet several requirements. Families must have a good credit history, a stable employment history, and an acceptable debt to income ratio. Interested applicants must also have the ability to make a down payment of between $1000 and $4200. If families do not qualify, OMNI will collaborate with them to help find ways to meet the requirements in the future.

Once an applicant is chosen, he or she must enroll into a class which teaches new homeowners such fundamentals as money management, basic lawn care, and home maintenance. "We're looking for people who are committed to being homeowners. By taking our home-buyer classes, you'll not only get a great education, you'll get help with the down payment", said Joseph Caffey, president of OMNI.