Fewer homes for sale and sky-high prices have made homebuying a major challenge in recent years, especially for first-time buyers. If you’re looking to purchase your first home, you may wonder if it’s even possible in today’s market. The good news is that with a little planning, you can help make your dreams of home ownership a reality.
Down Payment Assistance for First-Generation Home Buyers in RI
In February 2022, Rhode Island Governor Dan McKee announced the launch of a pilot program called FirstGenHomeRI. The program provides up to $25,000 in down payment assistance for home buyers who meet program eligibility; namely, people who are the first in their family to purchase a home. Qualified buyers can obtain a zero-interest loan for their down payment that the state will forgive after the borrower lives in the home for five years and makes it their primary residence. No monthly payments are due on the loan. Although the pilot program is currently available in only a few select communities, Governor McKee hopes to make it a statewide program soon.
Consider Applying for an FHA Loan
Loans backed by the Federal Housing Administration (FHA) have more lenient credit history requirements than conventional home loans and allow for down payments as low as 3.5% of the purchase price. FHA loans typically also offer lower interest rates and reduced closing costs than traditional mortgage products.
MA and RI Mortgage Programs
Both Massachusetts and Rhode Island offer mortgage programs at the state level that provide low-down payment and no-down payment options along with down payment assistance. The programs in both states have more lenient credit history requirements than traditional home loans as well. Visit the MassHousing and RI Housing websites for more information.
Consider a Condo
Condos can be more affordable than single-family homes, and can potentially require less upkeep than a home since you’re not responsible for things like mowing the lawn or shoveling the driveway. Some condos also provide access to more amenities than you would get with a house. Many condos have more robust security than stand-alone homes, which can make them cheaper to insure as well.
It’s totally normal to feel overwhelmed when buying a house for the first time. There are many programs and loan options available to help make the process easier for first-time buyers, but you may need some guidance. If you are considering a home purchase or just want to know where to start, don’t hesitate to contact me today at www.bankfive.com/mikemendonca.
NMLS #: 4699
Email: [email protected]