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First Time Home Buyer RI
In this article you will discover important information and resources for first time home buyer RI.
If you’re a first-time home buyer in Rhode Island, you’re probably dealing with skyrocketing property values. And that can feel like a real challenge.
However, there is some good news: your state or city may be on your side.
For first-time homebuyers in Rhode Island, the state offers special mortgages and homebuyer education classes.
You might be able to get help with your down payment, which can help you buy a house with your savings.
If you’re a first-time purchaser in Rhode Island, you could be eligible for an inexpensive mortgage and down payment help through Rhode Island Housing, the state’s housing finance agency.
While restrictions vary, in order to qualify for these programs, first-time buyers must typically attend a homebuyer education class.
If you’re looking to buy your first house in the state, take a look at what’s available.
First Time Home Buyer RI Loan Programs
RI Housing First-Time Homebuyer Loan
With its First-Time Homebuyer Loan program and down payment assistance, Rhode Island Housing (RI Housing) can help you get up to 100% of the money you need to buy a home for the first time.
An FHA, VA, or USDA loan with reasonable interest rates are all options for first-time homebuyers looking for a conventional loan (20- or 30-year terms are available).
RI Housing or one of the agency’s participating mortgage lenders can provide these loans.
To qualify for a First-Time Homebuyer Loan, you’ll have to attend a homebuyer education course, it may be done online, and meet the program’s home purchase price maximum of $453,863, as well as household income restrictions.
Presently, these are up to $97,646 for households of up to two persons and $112,293 for households of three or more.
Down Payment Assistance
RI Housing 10kDPA
To help first-time homebuyers, RI Housing offers the 10kDPA program, which provides a $10,000 deferred down payment assistance loan that does not need monthly payments until the home is no longer used as the principal residence.
As a result, you’ll be able to borrow money without paying interest until you sell your house or otherwise leave your current residence.
Applicants must have a credit score of 660 or higher and successfully complete homebuyer education before being considered for the 10kDPA program.
In addition, you must get a first mortgage from RI Housing (or any other participating lender) and satisfy the same purchase price and household income criteria as the First-Time Homebuyer Loan program in order to qualify.
RI Housing Extra Assistance Loan
For first-time purchasers in Rhode Island, the Extra Assistance loan from RI Housing can provide a down payment assistance of up to $15,000 or 6% of the purchase price, whichever is less.
Most of the time, the interest rate on this loan is the same as your original mortgage, so there are no additional expenses.
The following requirements must be met in order to be considered:
➣ Be a first-time homebuyer with a RI Housing first mortgage
➣ Be a first-time homebuyer with a RI Housing first mortgage
➣ Have a minimum 620 credit rating
➣ Take a homebuyer education class
Additional Rhode Island First-Time Homebuyer Programs
First Homes Tax Credit
In Rhode Island, the First Homes Tax Credit provides a mortgage credit certificate to first-time homebuyers (or those purchasing in particular targeted locations) (MCC).
The MCC is a federal tax credit of up to 20% of your mortgage interest, up to a maximum of $2,000 each year.
You can use the MCC for as long as your mortgage is current, and you continue to stay in the property as your primary residence.
A $100 reservation fee is required to receive an MCC. Additional costs may apply.
Additionally, you must meet family income requirements ($93,623 for a one- or two-person household and $107,667 for a three- or more-person household), and the home’s price cannot exceed $441,176.
Bear in mind that while this tax credit may help you qualify for a loan and reduce your tax liability, you may be liable to a federal recapture tax if you sell your property for a profit within nine years and earn more than the family income limit.
Other Lending Options for First Time Homebuyers
Along with the programs offered by RI Housing, first-time homebuyers in Rhode Island may qualify for other forms of inexpensive mortgages, such as FHA, VA, or USDA loans.
These are advantageous if you lack a sizable down payment or have a low credit score. Additionally, there are customized programs for specific sorts of borrowers, such as teachers or police officers.
Other Rhode Island homeownership programs, including those organized by city, can be found at HUD.gov.
First Time Home Buyer RI Summary
If you’re interested in learning more about the RI Housing mortgage program, you can visit the agency’s website. If you’re interested in applying for one of these programs, consult our list of mortgage lenders who can assist you with the application procedure.
Bear in mind that regardless of whatever mortgage you ultimately obtain, interest rates and costs vary by lender, so it’s always prudent to obtain numerous estimates and carefully evaluate loan offers prior to committing to one.