The Rhode Island FHA loan program is a great option if you're a first time homebuyer, you want to take advantage of low down payments, or don’t have perfect credit. Keep reading to find out why a Rhode Island FHA loan may be right for you.
Why Choose an FHA Loan in Rhode Island
Considering the fact that Rhode Island homes cost nearly $50,000 more than the national average, paying 20% for a down payment can leave residents with drained bank accounts after buying a home. This is why Rhode Island residents are turning to FHA loans, and as of April 2019, the total value of FHA loans in the state of Rhode Island was $67 million!
Benefits of using FHA Loans in RI
FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to put down a large down payment.
FHA mortgage rates are typically lower than conventional mortgage rates.
FHA down payment and credit score requirements are typically lower than conventional loans
Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
FHA loans have a maximum loan limit in Rhode Island. The maximum limit is adjusted every year and, for 2024, is currently $498,257 for single-family dwellings. Rhode Island has a few counties with higher loan limits due to a higher cost of real estate in these areas. Use the table below for the full list of FHA loan limits in Rhode Island.
Buyers must be able to provide the following information and documents as requested by lenders:
The addresses of all your residences over the past two years.
The names of your employers over the past two years.
W2's for the past two years and current paycheck stubs.
Your current gross monthly salary.
Your Social Security Number.
Names, addresses, and account numbers with balances on all checking and savings accounts.
Addresses and loan information of any other real estate you owned.
Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.
Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.