Providence Redevelopment Agency
Neighborhood Stabilization Program
Foreclosed Homes Purchase & Rehab
Program For Homebuyers
______________________________________________________
The City of Providence Offers Homebuyer's Purchase &
The City of Providence wants to encourage homebuyers to take advantage of the current opportunities to buy and rehabilitate foreclosed, vacant houses in Providence neighborhoods......and make them their new homes.
Working with area lending institutions, the City's Providence Redevelopment Agency offers this program to allow homebuyers the opportunity to buy & rehabilitate vacant, foreclosed houses. If your income is 120% of area median or less, you automatically qualify for the Purchase & Rehab 50% Equity-Sharing Loan when you receive your home mortgage commitment.
NSP loan funds are being made available to encourage homebuyers to purchase foreclosed houses in need of repair.
Remember: You automatically qualify for the Purchase & Rehab 50% Equity-Sharing loan if you're income eligible and are buying a vacant, foreclosed house needing repairs AND are receiving an owner-occupant mortgage from a qualified area lending institution.
The HIGHLIGHTS
50% Equity Sharing Loans to HOMEBUYERS to buy and rehab formerly foreclosed houses.
To be eligible for NSP Purchase & Rehab funds, the foreclosed property must have been purchased directly from the lender and have the loan application applied for, approved and undergone an Environmental Review Statutory Check List BEFORE closing on the purchase.
· Rehab Limit: The Purchase & Rehab 50% Equity-Sharing Loan + mortgage amount may not exceed 110% of "As-completed" appraised value.
What rehabilitation repairs qualify?
PROGRAM REQUIRMENTS:
1. All rehabilitation work will require the applicant to obtain the necessary building permits. Copies of these permits must be on file BEFORE any NSP loan funds are disbursed.
2. All rehabilitation work must be performed prior to requisition and payment from loan proceeds. Work payments are made by check issued jointly in the name of the homebuyer/owner AND the contractor. No rehabilitation work performed prior to the loan closing will be paid for with NSP loan proceeds.
3. The assigned Inspector will determine all work eligibility for the NSP Rehabilitation Loan Program.
4. The assigned Inspector will estimate the total minimum cost for rehabilitation work required for occupancy, including work funded by other sources (if any). The applicant must verify the source of funding for all other necessary rehabilitation work associated with the Rehabilitation Loan, but not paid for by the NSP loan.
5. The homeowner will provide a detailed contractor bid for approval. The contractor doing the work must have - at minimum - a current Renovator Remodeler License (a lead license issued by the RI Dept. of Health) and contractor registration. A copy of the Renovator Remodeler License must be attached to the contractor bid.
6. A clearance to determine the property is lead-safe is required.
7. An inspector may require a contingency amount above the submitted work bid. The contingency will become part of the loan and, any portion unused may be used for any other eligible repairs.
8. If the inspector's estimated cost of the minimum work required is in excess of all of the rehab loan funds available, including NSP, the NSP loan will be denied.
9. All designated work must be completed with final inspection and occupancy within 12 months from the date of the NSP loan closing.
10. Illegal living unit(s) automatically disqualify the property for the program, unless the NSP loan is used to finance the removal of such unit(s).
11. Certified RI Housing Network homebuyer (single family) and/or a landlord training (multi-family) is required.
12. A lien will be placed on the property and remain until re-sale.
13. No NSP loan will be approved in conjunction with a sub-prime first mortgage or non-traditional predatory mortgage product.
Contact: Barbara Barone at 351-4300 ext. 405
email: bbarone@providenceri.com
Then contact Morra Electric at 401.232.3585 or visit them online at www.MorraElectric.com
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Warwick, RI, July 23, 2009…Signs of a Rhode Island housing recovery were strong in June with the existing single family median sales price continuing to increase for the fourth consecutive month. Prices rose to $210,000 last month from $190,000 in May. Sales volume was also up 20.9 percent from May to June and 12.4 percent year to year. The supply of single family homes on the market has dropped markedly in recent months, down to just over a 6-month supply last month. The reduced supply is critical to achieving a healthy market. A six-month supply is considered a balanced market between buyers and sellers. Pending sales – those under contract but not yet closed - were up 36 percent from the previous year. The percentage of single family distressed sales (short sales or foreclosures) has also been tracking in the right direction since March, down to 31.7 percent of all June sales. “All of the signs point to a healthy recovery in the single family homes market,” said Paul Leys, President of the Rhode Island Association of Realtors. “We won’t be completely back to normal until we move the excess foreclosures and short sales through the market but it appears as though we’re almost there.” The multi-family market showed a four-month supply on the market with 242 properties sold in June, up 64.6 percent from the year prior and 39.1 percent from May. Multi-family median price was up 1.5 percent from May to June but down 44.5 percent from June 2008. Prices remain low owing to a substantial 80.2 percent of sales selling through foreclosure or short sale. The median price of condominiums was also up, increasing 22.6 percent from May to June but prices remain down eight percent from the prior year. Likewise sales were up 46.2 percent in June from the month prior but down 4.3 percent from June 2008. The condo market showed the least percentage of distressed sales in June at 21.8 percent. “The statistics from recent months are solid. We’re definitely moving toward a more traditional market,” said Leys. “The $8000 tax credit for eligible buyers and low interest rates seem to be bringing a lot of hesitant buyers back into the game.”
The Rhode Island Association of Realtors will be releasing second quarter sales statistics on July 28.
This Sunday July 12, 2009 there will be a bike run in Memory of "Little Ed" If you have a bike everyone is meeting at Cardi's Furniture in Swansea, MA between 8am-10:15am we will be going on a 50 mile scenic motorcycle ride and end at Francis Farm in Rehoboth.. Whether or not you have a bike you can meet us at Francis Farm in Rehoboth to watch the bikes ride in! There will be Live Music, Bike Rodeo, Burn out Pit, Bounce House & Food. For more information, please call 508-677-9557 or email prmhbikerun@aol.com $20/ person
Hope to see you there, it is going to be a wonderful time!
IMPORTANT INFORMATION FOR PAWTUCKET BUYERS
Dear Prospective Homebuyer,
Blackstone Valley Community Action Program and the City of Pawtucket, Department of Planning and Redevelopment are pleased to introduce the 2009-2010 Starter Home Grant Program, funded by the Pawtucket HOME Program. The following program guidelines shall be effective immediately, until further notice. You may be eligible to receive as a grant:
$15,000 (for purchase of a 2 or 3 family property in the Woodlawn or Pleasant View Neighborhoods)
$10,000 (for purchase of a 2 or 3 family property outside above areas)
$5000 (for purchase of a single-family property anywhere in Pawtucket)
$3000 (for condos anywhere in Pawtucket)
These funds may be used towards the down payment and closing costs related to your home purchase. In order to apply for the program, you must meet the following eligibility requirements:
Household Income Guidelines
Household Size Gross Annual
Income Limit (80%)
1 $41,000
2 $46,850
3 $52,700
4 $58,550
5 $63,250
6 $67,900
7 $72,600
8 $77,300
The program requires homebuyers to make a minimum contribution toward the purchase of their home, as indicated below. Please see the above chart for HUD income categories.
Family Requirements
TOTAL household gross income below 60% of HUD median requires buyer contribution of at least $500.
TOTAL household gross income of 60% to 80% of HUD median requires buyer contribution of at least $1,000.
Single Person Requirements
TOTAL household gross income below 60% of HUD median requires buyer contribution of at least $1,000.
TOTAL household gross income of 60% to 80% of HUD median requires buyer contribution of at least $2,000.
Mortgage Requirements
Prospective homebuyers may apply for a mortgage loan at the lender of their choice. However, participating lenders must adhere to the following guidelines:
The required down payment on any loan product shall not exceed 5%. (Buyers may choose to put down a larger amount if they are able to do so.)
The maximum interest rate allowed for mortgage loans in this program shall be no more than 3% over the prime rate at the time of application, and must be a FIXED rate.
Total closing costs for the buyer, (including attorney fees, broker fees, etc.) shall not exceed 3% of the mortgage loan amount.
Participating lenders must abide by all applicable laws including Fair Housing, Truth in Lending, and the Fair Credit Reporting Act.
No second mortgages will be allowed (with the exception of “Silent Second” such as that offered by Rhode Island Housing).
The program does not allow buyers to receive cash back at closing.
Homebuyer Education
All participants in the Starter Home Program MUST COMPLETE the Homebuyer Education/Landlord Training Program at BVCAP or at another approved agency. Please contact BVCAP as soon as possible to enroll in a course session. Programs are offered in English and in Spanish.
Eligible Properties
This program is intended for owner-occupied homes only. You must live in the home and use it as your primary residence upon completion of the purchase.
Displacement
You will not be eligible for any assistance if you plan to displace a currently occupied unit for any reason other than those stated in the current lease. If you plan to ask a tenant to move after you purchase the property, you may not use these funds.
Inspection, Repair and Lead Paint Requirements
In order to ensure that the property chosen for purchase is safe as well as affordable, a property inspection will be conducted at the beginning of the application process. If necessary, a lead inspection will also be conducted by a licensed lead inspector. These two inspections will be arranged by BVCAP and the City of Pawtucket. In addition, buyers must have, at minimum, a structural/mechanical and pest inspection performed.
(IMPORTANT: THESE INSPECTIONS MUST BE CONDUCTED WITHIN 10 DAYS AFTER A PURCHASE AND SALES AGREEMENT HAS BEEN SIGNED. FAILURE TO NOTIFY BVCAP IMMEDIATELY UPON SIGNING A PURCHASE AND SALES AGREEMENT MAY DISQUALIFY YOU FROM THE STARTER HOME PROGRAM!)
If any housing violations are discovered, particularly lead paint, you will receive notification and a time frame in which these violations must be corrected.
Federal regulations now require that all properties purchased with this type of grant assistance be certified as “lead safe”. If lead paint hazards are present, you will be required to have the necessary lead hazard reduction work done in order for the property to receive certification as “lead safe” upon re-inspection. You will be referred to available resources for funding the cost of lead hazard reduction work. Low interest home improvement loans may be available to qualified program participants to fund lead work, as well as other violations. Existing violations must be corrected in order for you to participate in the Pawtucket Starter Home Program. In cases of severe violations, the property may be determined ineligible for grant assistance.
Application Procedure
The first step in the Pawtucket Starter Home Grant application process involves pre-qualification to determine income eligibility. THIS SHOULD BE DONE BEFORE YOU BEGIN LOOKING FOR A HOME TO PURCHASE. In order to complete the pre-qualification, you must make an appointment with the BVCAP Housing Department staff and supply all of the following documents:
Birth certificates and Social Security cards for all household members. If household members are not U.S. citizens, proof of legal residency is required.
Income tax returns (copies of Form 1040) for previous tax year.
2 current pay stubs for all household members who work.
Current verification of all supplemental income (for example, FIP, SSI, Unemployment, TDI, Workers’ Compensation, Child Support, etc.).
Most recent checking and savings account statements.
Pre-qualification letter from mortgage lender.
Certificate of Completion from BVCAP’s Homebuyer Education Program (or approved equivalent).
Pre-qualification data is valid for up to six (6) months. If you have not found a home to purchase within that time, you must re-submit the pre-qualification information.
FUNDING FOR THE STARTER HOME PROGRAM IS LIMITED!! WHEN FUNDS HAVE BEEN DEPLETED, APPLICANTS WILL BE PLACED ON A WAITING LIST UNTIL ADDITIONAL FUNDS ARE AVAILABLE. Please note that income-eligibility alone is NOT a commitment that you will receive grant funding. Although you may have been pre-qualified, please remember that the property that you choose to purchase must meet all of the requirements outlined above, the mortgage loan product must comply, and there is no guarantee as to how long funds will be available. In all documents regarding the home purchase (offer form, Purchase and Sales Agreement, etc.), you should state as a condition of purchase “Subject to approval by the Pawtucket Starter Home Program”.
Please set up an appointment to complete the pre-qualification procedure for the Starter Home Grant Program as soon as you have all of the above documents. If you have questions regarding the program, please feel free to call me at 723-4520, ext. 264. We look forward to assisting your family in reaching the goal of home ownership!
Sincerely,
Daisy Luciano
Housing Coordinator
Realtor, Licensed in Rhode Island & Massachusetts. I am your Realtor, Welcome Home! Desire, Discipline & Dedication. Referrals are an important part of my business! www.Jessdecastro.weebly.com
Desire, Discipline, and Dedication.
My father instilled these values in me at a very young age and I have carried them with me throughout life in everything I do.
Real Estate is something I am very passionate about and something I always wanted to be successful in, especially because I grew up in a family owned and operated construction company. I have always enjoyed the construction and uniqueness of each individual home.
I grew up in Barrington, RI and traveled throughout Rhode Island and Massachusetts my entire life playing soccer. I spent a lot of time visiting different parts of the United States and learned many life lessons.
I am now licensed in Rhode Island, Massachusetts and Florida and I am a proud member of the National Association of Realtors and the Greater Providence Board of Realtors.
I am very passionate about what I do and I love helping each person meet there ultimate dream and goal, whether it be purchasing a home, selling a home, purchasing investment properties or land. Whatever your real estate needs are I know I am the Realtor for you!
Licensed in RI, MA & FL
May 22, 2008 In reply to: Jessica DeCastro To Whom It May Concern: I am writing this letter for recommendation for Jessica DeCastro. I have worked with Ms. DeCastro in the past in which she listed three houses that I owned and she sold two of them. One house that she sold for me she reduced her sales commission to make the transaction work. She is very enthusiastic and professional in all of her business dealings and I recommend her for any business opportunity that she is looking to enhance her career. If you would like to contact me please call me at 401-248-3355 Sincerely, Karriem K. Kanston 216 Weybosset 2nd floor, Providence, RI 02903 -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Letter of Recommendation for Jessica DeCastro In Spring of 2005 my husband and I began looking into buying a new home. As we were not sure what we wanted in a new house we decided to look at houses that were advertised in the Providence Journal and various online sites. We looked at hundreds of houses as we spent the next year and half talking and dealing with agents that we were just not comfortable with. My husband came in contact with Jessica from a newspaper add and everything else was history. In all transactions, Jessica was organized, thorough, and personable. She offered us an objective viewpoint on each house we toured, thereby helping us with our decisions. We found her to be knowledgeable about aspects of realty that surpassed just the legalities of buying and selling properties, and furthermore we were consistently impressed by her willingness to research questions she couldn’t answer right away. She was always expedient in returning our calls, searching for properties, and setting up tours. We can’t imagine an agent more patient than Jessica. We finally located a home we fell in love with and bought the house in April, 2007. In finalizing all the detail work involved in closing the deal and completing the contracts, Jessica was very helpful and was always on top of all closing requirements. We highly recommend Jessica to anyone looking for a highly effective and reliable real estate Sincerely, Prandy & Emilia Tavarez Providence, RI
agent.
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