But the second tier, which is normally assumed by the state under conventional risk-sharing arrangements, will be split between the banks and PPHC on a pro-rata basis.
The balance can come as a gift from a family member, a grant from a nonprofit organization or as a loan from PPHC or Rhode Island Housing.
For example, PPHC will provide down payment assistance to all borrowers to cover the difference between the 5 percent down payment and the required borrower contribution in the form of a secured deferred loan, payable when the property is resold.
All borrowers who earn $26,000 a year or more also are eligible for second mortgages from PPHC as well as loans to cover closing costs.
Matthew Powell, Godfrey's counterpart at PPHC, has counted 700 abandoned structures in the half-dozen east-side neighborhoods where deterioration is most prevalent.