Mortgage in Rhode Island
Rhode Island is a small state with a big impact! It's a beautiful place to raise a family, with plenty to do, from museums and parks to zoos. The median sales price has climbed significantly in recent years, driven by a robust economy and buyers seeking cheaper housing than they would find in neighboring Massachusetts and Connecticut. Indeed, the median price is above $300k . If you're thinking of moving to this small state, check out your potential housing costs with our Rhode Island mortgage calculator!
Mortgage Options in Rhode Island
If you're considering a move to Rhode Island, you have three main mortgage options to choose from.
- Rhode Island conventional mortgage: With housing costs on the pricier side, a traditional mortgage may be the only option for many buyers. Most of these loans require 20% down and a credit score in the 700s. However, under some circumstances, you can put as little as 3% down with a credit score as low as 620.
- Rhode Island FHA mortgage: FHA loans have purchase price limits that make them untenable in some parts of Rhode Island. However, if the home you buy falls under the limits, you can purchase it with as little as 3.5% down and a credit score of 580+.
- Rhode Island VA mortgage: Current military members and veterans can get a VA-backed mortgage with as little as 0% down. One of the best features of this mortgage is that you will never have to pay PMI!
These mortgages are open to all current and prospective residents of Rhode Island. For first-time homebuyers, the state has a few programs to make the transition from renting easier!
First-Time Home Buyer Programs in Rhode Island
Through the RIHousing agency, first-time homebuyers can access three programs to help make homeownership more attainable.
Rhode Island offers 30-year fixed-rate mortgages with as little as 0% down for first-time homebuyers. You can combine other programs with this first mortgage.
Eligibility Criteria: Income and purchase price limitations apply.
This program is available as an add-on for a first-time homebuyer loan. It provides down payment and closing cost assistance of 6% up to a maximum of $15,000.
Eligibility Criteria: Borrowers must have a minimum credit score of 620 and complete a homebuyer education course. Additionally, the first mortgage must be RIHousing-funded.
Eligible homeowners can claim 20% of their mortgage interest as a non-refundable tax credit. Please note that the maximum benefit is $2,000.
Eligibility Criteria: The borrower must receive this certificate in conjunction with a RIHousing loan or an approved lender.
Rhode Island Mortgage Calculator: How Much Will a Home Cost You?
Rhode Island is a beautiful place to live, work, and raise a family. If you're interested in moving to the Ocean State, use our Rhode Island mortgage calculator to estimate your monthly housing costs. With above-average home prices, it's essential to make sure a prospective move fits your budget!
