Rhode Island Housing: NSP Homebuyer Assistance

for homebuyers

Neighborhood Stabilization Program (NSP) Homebuyer Assistance

Notice: Due to the tremendous interest in Neighborhood Stabilization Program (NSP) Homebuyer Assistance, all funds have been reserved. We encourage you to check back with us to determine if any new funds become available.

Rhode Island Housing, in partnership with the state Department of Administration's Office of Housing and Community Development, is pleased to announce Neighborhood Stabilization Program (NSP) Homebuyer Assistance.

NSP Homebuyer Assistance provides 20 percent of the purchase price up to a maximum of $40,000 to income-eligible homebuyers purchasing qualified, foreclosed properties that are located in designated neighborhoods impacted by the foreclosure crisis. Program requirements and funding are made available through the federal Housing and Economic Recovery Act of 2008 (HERA), Neighborhood Stabilization Program.

Funds are available to eligible homebuyers who are obtaining financing through Rhode Island Housing's FirstHomes program or other equivalent financing that is approved by Rhode Island Housing. Adjustable rate mortgages do not qualify as other equivalent financing.

NSP funding can only be used to purchase and occupy, or purchase, rehabilitate and occupy foreclosed homes located in NSP-designated areas .

Program details
- Must be purchasing a foreclosed property in NSP-designated areas
- Purchase price must be a minimum of one percent lower than appraised value
- Home inspection and lead conformance inspection are required
- 20 percent of the purchase price up to a maximum of $40,000 is available to homebuyers in the form of a deferred-payment loan.
- The first $15,000 of the loan is forgiven if the homebuyer remains in the home for at least five years.
- Any amount above $15,000 will be forgiven at 20 percent per year during years 6 through 10.
- Loan must be repaid in full if the homebuyer sells the home during the first five years of the mortgage
- Can be used with a FirstHomes mortgage or other equivalent financing approved by Rhode Island Housing.
- Homebuyer education is required. Buyers must complete an 8-hour homebuyer education class offered by The Housing Network of Rhode Island. You can contact The Housing Network of Rhode Island at 401 521-1461 for more information on the class.
- Homebuyers obtaining financing outside of Rhode Island Housing's FirstHomes program must meet with a Rhode Island Housing HelpCenter counselor prior to obtaining NSP Homebuyer Assistance. You can call the HelpCenter at 401 457-1130 to make an appointment.
- NSP income limits apply (these are different than our FirstHomes income limits)