If you are in a position financially where you can start looking into buying your first home, you should consider looking in Rhode Island. Movoto, a home buyer’s guide to the houses currently on the market, has a list of many Rhode Island properties currently for sale for home seekers in many different income levels. Rhode Island may be the smallest state in the United States but don’t judge it by its size. There are many small towns and large cities in Rhode Island, and each of them would be a great place to call home.
Another reason to look for a home in Rhode Island is all of the incentives and programs that are offered to first time home buyer’s in Rhode Island. These programs can help you save a great deal of money when you are ready to buy.
USDA 100 Percent Financing Program
This program allows you to purchase a home with no down payment. In order to qualify for this type of loan, you would need to purchase in a rural area that is located in a targeted area. There are several areas in Rhode Island that are located in the targeted area. In order to qualify for this type of loan, you would need to have a credit score of at least 640. If you think that this loan is the right one for you, and you don’t have a high enough credit score, you may want to wait a year or so until you can bring your credit score up. In order to qualify for this type of loan you would also need to meet the income eligibility requirements. The income eligibility requirements depend on a few things, including:
- The Rhode Island county that you are thinking of moving to
- The number of people in the household
- The number of children in the home that are under 18 years old
- The number of full-time students in the home
- The number of disabled people in the home
- Whether or not the applicant or the co-applicant is 62 years of age or older
Finally, if you were to go with this type of loan, the seller can pay 6 percent of the purchase price toward the closing costs. With this type of loan, you can purchase a single-family or a multi-family home.
FHA Program
Rhode Islanders have been taking advantage of all the benefits of FHA loans since 1934. If you are considering an FHA loan, you can purchase a single-family home, a two-to-four-unit property loan, or a condo loan. FHA loans also offer kiddie condo options. This is where the buyer’s parents or another family member cosigns the loan should the buyer not have the credit to do so on their own. In order to qualify for this type of loan, you would need to have a credit score of at least 620. When it comes to the down payment, if you would be required to pay anything, the cost is very low. As of January 1, 2016, you can finance 96.5 percent of the purchase price, and put down just 3.5 percent. If you are planning to combine your FHA loan with other types of loans or programs, the down payment can be zero. The closing cost on these types of loans is often very low.
Home Ready Program by Fannie May
This is an excellent program for anyone who has a good credit score, but has a low income. The income guidelines of this program are very flexible, and allow certain income situations that many other loan programs do not offer. These include:
- Non occupants, such as parents, siblings, and grandparents can be listed as a borrower
- If it falls under the specified guidelines, the income from a boarder can be considered income
- The income from a household member who is not the buyer will be considered
This is a program designed for first-time home buyers. If you have owned a home in the past, but not within the last three years, you would qualify as well.
Another benefit of this program is that in certain situations, the monthly mortgage insurance can be canceled or reduced.
In order to qualify for this program, you would need to take an online educational course, which ensures the lenders that you are prepared for the responsibility ad the financial obligations involved with purchasing a home.
Good Neighbor Next Door
This is a program offered by the U.S. Department of Housing and Urban Development (HUD), in an effort to make American communities ber. The people who can take advantage of this program are people who work in law enforcement, firefighters, emergency medical technicians, and teachers, who teach children in grades kindergarten through 12.
If you qualify for this program, you could receive up to a 50 percent discount on homes in the target areas. Currently, there are several eligible homes located in Rhode Island. Another benefit of this program is that you would receive a low down payment option. For many first-time buyers, the down payment is what makes purchasing a home, difficult. This program can help if that is a problem. One stipulation with this program is that you must purchase the home as your personal residence. You cannot purchase the home and rent it out.
Rhode Island is a wonderful place to live. There is something in this tiny state for everyone. The beaches are beautiful, there is plenty for art and theater lovers to do, and if you have children or are planning to start a family, the school systems are excellent. If you are planning to move to Rhode Island, there are several excellent first-time buyer programs that can make home ownership possible.
2 Point Highlight
If you are planning to move to Rhode Island, there are several excellent first time buyer programs that can make home ownership possible.
If you are in a position financially where can start looking into buying your first home, you should consider looking in Rhode Island.
