Rhode Island Housing Initiative Offers Down Payment Assistance to First-Time Homebuyers

Dated: January 10 2024

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Rhode Island Housing

Rhode Island - In a significant boost for aspiring homeowners in the Ocean State, the Rhode Island Housing Initiative (RIHousing) is rolling out its eagerly anticipated "Extra Assistance" program. This initiative aims to alleviate the financial burden of the down payment, a major obstacle to homeownership for many first-time buyers in the region.

RIHousing, the state's premier housing authority, has launched this program to fulfill its commitment to making homeownership more accessible and affordable for Rhode Islanders. With the "Extra Assistance" program, eligible first-time homebuyers can receive vital support in their journey toward owning a home.

Eligibility Criteria

To be eligible for the "Extra Assistance" program, applicants must meet specific criteria:

First-Time Homebuyer Status: Participants must be first-time homebuyers, which means they have not previously owned a home.

Property Types: The program covers 1-4 family homes and condominiums located within the state of Rhode Island.

Minimum Credit Score: Applicants are required to have a minimum credit score of 620 to qualify.

Homebuyer Education: Completing a homebuyer education course is mandatory. RIHousing offers these courses both in-person and online, ensuring accessibility for all.

RIHousing-Funded First Mortgage: Applicants must secure a first mortgage through a Participating Lender or the RIHousing Loan Center. These first mortgages are funded by RIHousing.

Primary Residence: The home must be intended as the primary residence of the applicant.

 

Program Highlights

The "Extra Assistance" program offers a range of benefits to assist first-time homebuyers in achieving their homeownership dreams:

Down Payment Assistance: Eligible participants can receive up to 6% of the purchase price of the home or a maximum of $15,000, whichever is lower. This financial support can make a substantial difference in affording a new home.

For 3 or 4 Unit Properties: If prospective buyers are interested in purchasing 3 or 4 unit properties, the program provides a $9,000 limit for down payment assistance, specifically applied to closing costs.

Competitive Interest Rates: In most cases, the interest rate on the "Extra Assistance" loan matches the interest rate on the RIHousing first mortgage, ensuring affordability and financial stability.

No Hidden Costs: A significant advantage of this program is that there are no fees or charges associated with it. Applicants can focus on their homeownership goals without worrying about unexpected expenses.

Second Mortgage Lien: It's important to note that the "Extra Assistance" loan is a second mortgage lien on the home. This means it's an additional loan secured by the property.

 

Prospective homeowners in Rhode Island are encouraged to explore the "Extra Assistance" program as it offers a promising path to homeownership. To find out more about eligibility and application details, individuals can contact RIHousing directly or visit their official website.

 

With this initiative, Rhode Island is taking a significant step toward making homeownership more attainable for its residents, ensuring that more families can realize their dreams of owning a home in the state.

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Denis DaSilva

As the founding partner of revolv Real Estate, Mr. DaSilva plays a crucial and unique role in the organization. Unlike many agency brokers who engage in sales themselves, he stands out as a non-compet....

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