Forgivable Down Payment Assistance or forgivable homebuying loans in Rhode Island provide qualifying homebuyers with a downpayment grant that is a true grant, meaning you do not have to pay it back. This first time buyer assistance does not need to be repaid as long as certain conditions are met. The Rhode Island Statewide DPA Grant, also known as the Rhode Island Down Payment Grant, is one such program that offers forgivable down payment assistance.

The concept of forgivable DPA involves providing homebuyers with a grant that gradually becomes a gift or forgivable loan if the recipient fulfills specific requirements. These requirements typically include maintaining the home as the primary residence, adhering to the program’s occupancy period, and fulfilling any other obligations outlined by the grant program. By meeting these conditions, the grant is forgiven, effectively transforming it into a true gift that does not require repayment.

Forgivable DPA programs, like the one available in Rhode Island, aim to make homeownership more attainable and affordable, particularly for first-time homebuyers facing financial barriers. By offering this form of assistance, the program recognizes the importance of supporting individuals and families in achieving their housing dreams while promoting long-term housing stability and community development.