Rhode Island may be a fairly small state in comparison to some others like Texas and Alaska, but there are first time home buyers looking for their dream homes nonetheless. There are also plenty of buyers who need assistance in order to make their home buying dreams a reality. Thankfully, Rhode Island does offer a handful of programs designed specifically for these types of buyers. Programs come in the form of low-cost loans, down payment assistance, and grants.
First time home buyers in Rhode Island who are just getting underway are advised to ask their real estate agents or bankers about assistance available in their areas. Keep in mind that most of the programs might be administered by the state, but loans will be made through participating banks and mortgage lenders. If your real estate agent or banker doesn't have the information to help you, you can always contact Rhode Island Housing.
Rhode Island Housing
This independent, self funded agency has been helping Rhode Island homeowners for more than 30 years. They provide assistance through low-cost loans, grants, home buyer education programs, and consumer credit counseling programs for those in danger of losing their homes. They are funded through a public/private partnership which brings investor dollars into the state through the sale of securities. Since its inception the agency has raised some $400 million to help Rhode Island home buyers.
Rhode Island Housing has three currently active programs aimed at first time home buyers. The first two programs come in the form of low-cost mortgages. The third program is a grant program by which first time home buyers can receive assistance for down payment or closing costs. The state provides a good amount of information on the home loan programs but very little information about the grants. It is assumed that the grants are limited in nature based on the availability of funds.
Rhode Island First Homes 100
The most common of Rhode Island's first time home buyer programs is known as the First Homes 100 loan program. This program offers a low-cost mortgage with 100% financing of the total cost of the property. It is a fixed-rate, 30-year product eligible to single-family buyers who are purchasing their first home. In addition to this mortgage, the state also provides ongoing support which includes free credit counseling throughout the life of the mortgage, free home repair education training, and other services designed to help home buyers remain in their homes for as long as they want.
Rhode Island First Homes 100+
Similar to the previous program, First Homes 100+ also provides a low-cost mortgage for 100% of the value of the property. It has the same 30-year fixed rate term and provides the same support and counseling services. However, in addition it provides all the funds necessary to make needed repairs and upgrades, along with the services of a certified home renovation consultant. Home buyers eligible for this mortgage will usually purchase a home of lower value that needs significant renovations. The state is happy to provide this program as a means of upgrading those homes and increasing property values.
Both of these loans do come with certain restrictions including income eligibility, purchase price of the home, and the geographical location where you wish to purchase. These requirements are subject to change from time to time depending on the housing needs of the residents of Rhode Island. Check with Rhode Island Housing for details of these requirements.
Rhode Island Grants
As previously stated, Rhode Island Housing offers grants for closing cost assistance and down payment. However, it appears as though these funds are limited and may not be available year-round. The state organization's website gives very few details about these grants for this reason. However, if they work according to the standard definition of a grant they come by way of cash assistance that does not need to be repaid. As long as home buyers meet program requirements, including remaining in the home as their primary residence for a specified amount of time, the grants need not ever be repaid.
Additional Programs in Rhode Island
It is not uncommon for local programs to be administered at the county or municipal level. Rhode Island is no exception. We have provided a list of programs as listed on the HUD website current as of September 2011. Keep in mind that these programs also might be limited and/or time sensitive in nature. You will need to contact each local program individually to determine whether or not it is still active.
- Cranston Closing Cost Assistance Program (CCAP)
- Pawtucket Starter Home Grant Program (SHG)
- Providence Dept. Planning & Development Down Payment/Closing Cost Assistance Program (DAP)
- Woonsocket Spring Ahead Value Enterprise (SAVE)