Down Payment Assistance and Grants for first time home buyers in Rhode Island.
   
     
Map of Rhode Island
  We have several programs in Rhode Island in our database with varying levels of down payment assistance. The average program has approximately $10,000 in available assistance. All programs have different guidelines and qualifications. Please click here to get more information from your local down payment assistance specialist.
     
    First Time Home buyers can take advantage of down payment assistance and grants available in Rhode Island. First time home buyers typically qualify if they have not owned a property in the last 3 years. If you have owned a property in the last 3 years, you can still qualify for some down payment assistance programs.
     
    Here are some examples:
     
  5.25% interest rate with no down payment assistance. - State Program
  5.99% interest rate with 5% down payment assistance - State Program
  $10,000 Principal reduction, 95% closing cost assistance, 1/2 of down payment paid for. City Program
  $10,000 to $14,500 based on Area Median Income Percentage % City Program
  First-time home buyer program which provides principal reduction, down payment, and closing costs assistance up to $10,000.00. Also, may provide a grant of up to $1,500.00 for Minimum Housing Standards repairs. City Program
  $14,200 for new construction, $9,500 for resale properties, For new houses in select target areas, participants may receive up to $25,000 County Program
  3% of purchase price contributed by seller. Charity Program
     
   
     
    FreeDownPayment.org is a free service from GMAC Real Estate that puts you in touch with a Realtor in your desired area who specializes in first time home buyers. Our agents can advise and help you with the various down payment assistance programs available. Most first time home buyers don't realize they may qualify for reduced interest rates and thousands of dollars in FREE money or grants to help them with obtaining the American Dream.
     
   

Top 5 First Time Home Buyer Questions Answered

   

1. What will a lender look at when I apply for a mortgage?
2. What does it mean to get pre-approved?
3. What if I have had credit problems?
4. What is the minimum down payment I can make on a home?
5. What down payment assistance is available?

     
   
1. What will a lender look at when I apply for a mortgage?
    Lenders consider many factors in evaluating your loan application, but they usually focus on four areas:
    Income and debt. How much money you make and what other bills you have to pay helps the lender determine whether you can afford to make mortgage payments.
    Assets. The lender needs to make sure you have enough money to cover the costs of buying a home.
    Credit. Whether you have met other financial obligations helps the lender predict whether you will repay your mortgage.
    Property. The home you want to buy has to be worth enough to act as collateral for the mortgage.
     
   
2. What does it mean to get pre-approved?
    Getting pre-approved means you receive a loan commitment from your mortgage company before you have found a home, based on a review of your credit and finances. Having your credit pre-approved shows sellers that you are a qualified buyer and helps you establish a clear price range. The process is the same as a typical mortgage application, except that your application does not include property information.
     
   
3. What if I have had credit problems?
    Your credit history is only one factor in qualifying for a loan, and having made some late payments doesn't have to keep you from buying a home. Someone who has consistently made payments on time in the past may have more financing options than someone who has not, but that doesn't mean a mortgage is off-limits if you've had credit problems. We may be able to recommend a variety of mortgage options to help people with less-than-perfect credit become homeowners and leave credit challenges behind. Most buyers need at least a 620 FICO score to qualify for federal downpayment assistance.
     
   
4. What is the minimum down payment I can make on a home?
    There is generally no minimum down payment required for buying a home. Many first-time buyers believe they must be able to put down as much as 20% of a home's purchase price in cash. That may have been true in the past, but many of the mortgage options available to today's home-buyers require little or no down payment. With housing prices as high as they are in some areas, homeownership would be impossible for many people if not for these low-down-payment options.
     
   
5. What down payment assistance is available?
    There are down payment programs available for all types of buyers. If there is not an available program in your area, there are charity programs nationwide that can provide assistance through seller grants. Contact us for more details.