Rhode Island Housing (RIH) has introduced a new Extra Assistance Loan for first-time homebuyers, effective May 21, 2018. This Extra Assistance Loan may be used towards the borrower’s down payment and/or closing costs. RIH offers affordable and innovative lending opportunities, education, resources and programs to assist Rhode Islanders to buy, build and keep a good home.
Extra Assistance Loan Requirements:
- May be combined with all RIHousing first mortgage products
- First-time homebuyers only (unless in targeted area)
- Must purchase in Rhode Island
- Maximum LTV/CLTV per first mortgage product requirements
- 15-year term
- May be combined with First Down Program
- Interest rate per first mortgage product requirements
- No maximum household income limits
Eligible Property Types/Loan Limit and Use of Funds:
- 1 unit or Condominium – 6% of purchase price not to exceed $12,000
- 2 units – 6% of purchase price not to exceed $12,000 (rental income may be used for qualifying purposes)
- 3-4 units – $7,500 loan maximum to be applied to closing costs only (rental income may be used for qualifying purposes)
If combining with First Down Program:
- Extra Assistance loan used only for closing costs
- 1 unit – $6,500 Extra Assistance Loan maximum
- 2-4 units – $7,500 Extra Assistance Loan maximum
The new Extra Assistance loan is replacing Rhode Island Housing’s Amortizing Second Mortgage and Closing Cost Assistance Loan. For more information, or to see if you qualify, contact one of our licensed Rhode Island Loan Officers, today.