What is the Rhode Island Extra Assistance Program?
The Rhode Island Extra Assistance Program provides additional financial support to eligible homebuyers for down payment and closing costs, helping make homeownership more affordable.
Who qualifies for the Extra Assistance Program?
Eligibility is open to first-time homebuyers and repeat buyers purchasing a home in Rhode Island. Applicants must meet income, credit, and property requirements and use the home as their primary residence.
How much assistance does the Extra Assistance Program provide?
The program offers up to $15,000 in assistance to help cover down payment and closing costs for eligible buyers.
Is the assistance provided as a loan or a grant?
The assistance is a second mortgage loan with a 0% interest rate, which is forgivable after five years if the homeowner meets program requirements.
What is the minimum credit score required for the program?
A minimum credit score of 660 is generally required, although higher scores may improve eligibility and loan terms.
Are there income limits for the Extra Assistance Program?
Yes, income limits apply and vary by household size and property location. These limits are updated annually to reflect current market conditions.
What types of properties are eligible for the program?
Eligible properties include single-family homes, condominiums, and multi-family homes with up to four units. All properties must meet program guidelines and be used as the buyer’s primary residence.
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Get Started NowCan the program be used for newly constructed homes?
Yes, newly built homes are eligible as long as they meet the program’s guidelines and are intended as the buyer’s primary residence.
Is homebuyer education required for the Extra Assistance Program?
Yes, completing a homebuyer education course is mandatory to ensure buyers are prepared for the responsibilities of homeownership.
What is the maximum purchase price allowed under the program?
The maximum purchase price is determined based on the property’s location and whether it is in a targeted or non-targeted area, typically ranging up to $500,000.
Can the Extra Assistance Program be combined with other programs?
Yes, the program can be combined with other Rhode Island Housing programs, such as the FirstHomes100 Program, for additional financial support.
Are there debt-to-income (DTI) ratio limits for the program?
Yes, the program typically allows a maximum DTI ratio of 45%, though exceptions may apply depending on other financial qualifications.
What happens if I sell or refinance my home before the assistance is fully forgiven?
If you sell or refinance before the five-year forgiveness period is complete, you may need to repay the remaining unforgiven portion of the assistance loan.
Can the program be used to refinance an existing home?
No, the Extra Assistance Program is specifically designed for purchasing a primary residence and does not apply to refinancing.
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Get Started NowAre there reserve requirements for the program?
No specific reserve requirements are mandated, but having financial reserves may strengthen an applicant’s overall loan profile.
Are there location restrictions for the program?
Yes, the property must be located in Rhode Island, and additional guidelines may apply depending on whether the home is in a targeted or non-targeted area.
What are the benefits of the Extra Assistance Program?
The program provides substantial financial support for down payment and closing costs, with forgivable terms that make homeownership more affordable.
How do I apply for the Extra Assistance Program?
Applicants must meet eligibility requirements and work with a program-approved lender who will guide them through the application process.
What is the loan term for the assistance provided under the program?
The assistance is structured as a five-year forgivable loan, with 20% of the balance forgiven annually if all program conditions are met.
Can veterans benefit from the program?
Yes, veterans may qualify for additional benefits and may be exempt from certain requirements under the program.