Section 32 Homeownership Program

Eligibility Requirements:

  • Eligible purchasers may earn up to, but not exceed 80% of Area Median Family Income(see below)

  • Eligible purchasers must not exceed 35% of their monthly-adjusted income to cover monthly mortgage interest and principle, 1/12 of taxes and 1/12 of insurance

  • Must be a first time homebuyer

  • The dwelling that is to be purchased under this program must be the perspective buyers principle residence

  • Must be credit worthy or become credit worthy within a 12 month period.  Must be able to pay a down payment of 1% of the purchase price of said property, and this down payment must be contributed from the applicants own funds.  (Budgeting and money management assistance provided by the Homeownership Coordinator will lead to the perspective by the perspective buyer accomplishing this)

  • Must be willing to receive counseling, training, and technical assistance to lead you through the process of becoming a homeowner under the homeownership program

  • Must be working full time for a period of at least 15 months or very close to meet expectation

  • Must be able to afford a mortgage of at least $35,000

  • Must be ready and willing to reside in the peoperty as a tenant for at least 6 months, before the actual purchase of said property takes place

Advantages to Homeownership:

  • Over time, the mortgage balance decreases and equity builds

  • There can be tax advantages(deduction of mortgage interest and property taxes)

  • Ability to redecorate the home to match your needs and desires

  • Not dependent on landlord to maintain property

Median Family Income Limits as Follows:

     2 person family     $52,400

     3 person family     $58,950

     4 person family     $65,500

     5 person family     $70,750

     6 person family     $76,000

     7 person family     $81,250

     8 person family     $86,500

2018 North Providence Housing Authority