If you are a first time home buyer in Rhode Island, you may be eligible for an affordable mortgage as well Advance payment assistance through Rhode Island Housing, the state’s real estate finance agency. While requirements vary, first-time buyers typically must complete a homebuyer training class to qualify for these programs. Here’s a look at what’s available when you buy your first home in the state.
Rhode Island first-time home loan programs
RIHousing First Time Home Loan
Rhode Island Housing (RIHousing) offers financing of up to 100 percent through the First-Time Homebuyer Loan Program and the associated deposit assistance. The first-time homebuyer loan can be a traditional loan (20 and 30 year terms available) or an FHA loan, VA loan, or USDA loan, all of which are offered at competitive rates. These loans can be obtained directly from RIHousing or from one of the agency’s participating mortgage lenders.
To qualify for a first-time homebuyer loan, you must complete a homebuyer training course – available online – and meet the program’s $ 453,863 home purchase price limit and household income restrictions. Currently this is up to $ 97,646 for households of up to two people and $ 112,293 for households of three or more people.
Rhode Island Down Payment Assistance
RIHousing 10kDPA Loan
RIHousing’s 10kDPA program is a deferred loan in support of $ 10,000 down payment for first time home buyers that does not require monthly payments until the home is no longer your primary residence. That means you can enjoy interest-free support until you sell or move out of your home.
To be eligible for the 10kDPA program, you must have a minimum score of 660 and complete a homebuyer training course. You must also obtain your first mortgage through RIHousing (or a participating lender) and meet purchase price and household income limits that are the same as those for the First-Time Homebuyer Loan Program.
RIHousing Extra Assistance Loans
First time home buyers in Rhode Island may also be eligible for down payment assistance of up to $ 15,000, or 6 percent of the purchase price of their home, whichever is lower, through RIHousing’s Extra Assistance loan. The interest rate on this loan is in most cases the same as your first mortgage, with no additional fees. To qualify, you must:
- Be a first-time buyer taking out a first-time RIHousing mortgage
- Do you intend to occupy the house as your primary residence
- Have a minimum score of 620
- Complete a homebuyer education course
Other Rhode Island Homebuyer Utilities
FirstHomes Tax Credit
In Rhode Island, FirstHomes Tax Credit offers first-time buyers (or buyers shopping in specific destinations) a Mortgage Loan Certificate (MCC). The customer center is a federal tax credit that equates to up to 20 percent of your mortgage interest, up to $ 2,000 per year. You can use the customer center as long as you have your mortgage and live in the house for as long as your main residence.
To get a customer center, you must pay a reservation fee of USD 100. Other fees may apply. You must also meet the household income limits ($ 93,623 for a one or two person household and $ 107,667 for a household of three or more people), and the price of the home cannot exceed $ 441,176.
Keep in mind that while this tax credit can help you qualify for a loan and save money on your tax bill, if you sell your home at a profit within nine years and now make more than, you may be subject to federal redemption tax the household income limit.
Other first-time buyer loan programs
In addition to RIHousing’s programs, first-time home buyers in Rhode Island can also qualify for other types of affordable mortgages, including FHA, VA, or USDA loans. These can be ideal when you don’t have a substantial down payment or a lower credit score. There are also special programs that cater to certain types of borrowers, such as: B. Teachers or police offers. Go to Bankrat’s Guide for Loans and Programs for First Time Buyers to see what options might be available to you.
For more Rhode Island home ownership programs, including by city, see HUD.gov.
If you are interested in a RIHousing mortgage program, you can visit the agency’s website to find out more. If you’d like to apply for any of these programs, read this List of mortgage lenderswho can guide you through the process. Remember, no matter what mortgage you end up getting, the interest rates and fees vary depending on the lender. Hence, it is always a good idea to do so Receive multiple quotes and compare loan offers careful before committing to one.