Rhode Island Extra Assistance Program Guide

Guide to the Rhode Island Extra Assistance Program

The Rhode Island Extra Assistance Program is designed to help eligible homebuyers cover down payment and closing costs, making homeownership more accessible and affordable. This program offers financial support and works alongside other mortgage options to reduce the financial burden of purchasing a home. Below is a detailed guide to the program’s benefits, eligibility criteria, and application process for 2025.

1. Program Overview:

• Purpose: The Extra Assistance Program helps eligible buyers reduce upfront costs associated with purchasing a home by providing down payment and closing cost assistance.
• Assistance Amount: Buyers may receive up to $15,000 in financial assistance, depending on their needs and program guidelines.
• Repayment Terms: Assistance is provided as a forgivable loan, with repayment required only if the property is sold, refinanced, or no longer used as the primary residence within the forgiveness period.

2. Eligibility Requirements for 2025:

To qualify for the Rhode Island Extra Assistance Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily designed for first-time buyers, defined as individuals who have not owned a home in the past three years. Certain exceptions may apply.
• Income Limits: Household income must fall within program limits, which are based on area median income (AMI) and vary depending on location and household size.
• Credit Score: A minimum credit score of 640 is typically required, though additional requirements may vary by lender.
• Property Requirements: Eligible homes must be located in Rhode Island, used as the buyer’s primary residence, and meet program price limits and other eligibility criteria.
• Loan Type: Applicants must be approved for a compatible first mortgage, such as those offered through the Rhode Island Housing mortgage programs.

3. How to Apply:

Follow these steps to apply for the Rhode Island Extra Assistance Program:

• Contact a Participating Lender: Begin by reaching out to a Rhode Island Housing-approved lender who will guide you through the program requirements and application process.
• Prepare Required Documentation: Gather necessary documents, including proof of income, tax returns, credit history, and property details.
• Submit Your Application: Work with your lender to complete the application process. They will verify your eligibility and notify you of approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete a homebuyer education course. This course equips buyers with knowledge about budgeting, mortgages, and the responsibilities of homeownership.
• Course Availability: The course can be completed online or in person. Upon completion, participants will receive a certificate that must be submitted with their application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The program provides up to $15,000 to help cover down payment and closing costs, significantly reducing the upfront expenses of buying a home.
• Forgiveness Terms: The assistance is structured as a forgivable loan, typically forgiven over a set period (e.g., five years). If the buyer remains in the home for the entire period, repayment is not required.

6. Finalizing the Loan:

• Loan Approval: Once approved, your lender will guide you through the final steps, including reviewing loan terms, signing documents, and preparing for closing.
• Closing Costs: While the program helps with upfront costs, buyers may still be responsible for additional closing expenses. Your lender will provide a detailed breakdown of these costs.

The Rhode Island Extra Assistance Program is an excellent resource for homebuyers seeking financial support to achieve their homeownership goals. By reducing the upfront costs of buying a home, this program helps make homeownership more attainable for residents of Rhode Island. Take the first step toward owning your home with the Rhode Island Extra Assistance Program in 2025.