Congratulations on taking the first step to seeing how you can buy a home in RI with 100% financing. Call or email me at (401) 301-0130 or firstname.lastname@example.org and I'll help you decide which program offers the best terms for your situation. You can also visit me at webmortgagebanker.com
There are three mortgage programs available in RI:
Rhode Island Housing - RI Housing is a non-profit organization offering mortgages for first-time homebuyers directly and through participating lenders (defined as not owning a home for the previous three years). Loans are structured with a first and second mortgage for up to 100% of the purchase price and requires an upfront funding fee, which is financed into the loan, and monthly mortgage insurance. RI Housing may offer additional assistance for closing costs and repairs, which is based upon income limits and property location. RI Housing also offers renovation financing for properties in need of repair. RI Housing will finance 1-4 unit properties and condominiums and you must occupy the home as your primary residence. The following highlights RI Housing's mortgage programs
FirstHomes100 loans help many first-time homebuyers realize the dream of homeownership.
Our FirstHomes100 mortgage is a flexible, dependable loan that will help you buy – and keep – the home that is right for you and your family.
FirstHomes100 loans offer:
- 100% financing (no down payment required)
- Down payment and closing cost assistance
- No Mortgage Insurance required for qualified borrowers (resulting in lower monthly payments)
- 100% personal, local service and support for the life of the loan
Many first-time homebuyers may also be eligible for our FirstHomes Tax Credit – a federal tax credit that could save you as much as $2,000 a year for the life of your mortgage.
The FirstHomes Tax Credit is a great option to help new homebuyers save a little extra money.
The FirstHomes Tax Credit program provides qualified first-time Rhode Island homebuyers and those buying in targeted areas of the state with a mortgage credit certificate which can be used as a dollar-for-dollar tax credit of up to $2,000 against their federal tax liability for the life of their loan.
The FirstHomes Tax Credit:
- Offers extra tax savings for eligible borrowers
- Reduces a borrower’s federal tax liability
- Can be claimed each year for the life of the mortgage
- Is also available to select, non first-time homebuyers (in targeted areas)
You must be a qualified veteran, or active duty military and obtain a certificate of eligibility . VA will finance 100% of your purchase price and doesn't require you to pay monthly private mortgage insurance (PMI), however, VA does charge a funding fee which can be 1.25% - 3.3% of your loan amount. This funding fee is typically financed into the loan, and may be waived for qualified disabled veterans. You must occupy the home as your primary residence, and you may purchase 1-4 unit properties. Maximum loan amounts are based upon property location; you may be required to make a down payment for higher property values (generally over $424,000).
USDA (US Deptartment of Agriculture)
The department of agriculture offers 100% financing in limited geographic areas and on single family properties and condominiums only. USDA loans have an upfront guarantee fee equal to 1% of the loan amount and also requires mortgage insurance equal to .35% of th loan amount, paid monthly. USDA is typically more restrictive due to income limits and property eligibility based upon property location and condition.
The following are just a few examples of restrictions
- Generally be 2,000 square feet or less
- Not have market value in excess of the applicable area loan limit
- Not have in-ground swimming pools
- Not be designed for income producing activities (no multi-family properties)
All three of these programs require the typical lender and legal closing fees, these fees will vary based upon the loan amount and property location. A buyer may negotiate to have the seller pay these fees, and if successful, you can purchase a home with no out of pocket expense! It's important to work with an experienced mortgage loan officer and Realtor who will ensure you are shopping in your budgeted price range. Visit me at www.atlantichomeloans.com/gdevine or email me at email@example.com