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mommy2boy OP t1_j5uzcec wrote

Reply to comment by Zavehi in WHY ARE HOUSES SO EXPENSIVE by mommy2boy

What kind of programs?

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Zavehi t1_j5v0eyw wrote

In this state mainly Rhode Island Housing, they just announced today a grant program for $17,500 towards down payment and closing costs. Not a lien, no payment, just need to have a 660 FICO and make below 112k a year. Outside of that program they offer up to 15k as a second lien towards down payment and closing costs normally. 15k and whatever your first mortgage rate is. As of today that would be 6% if you are below the income limit.

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mommy2boy OP t1_j5v24lc wrote

My question is I’m assuming this is a one time thing? So would I not wait to use a grant it on a house we can afford after a few more years of saving? Genuinely would like your opinion

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Zavehi t1_j5v3ujr wrote

Rhode Island Housings down payment assistance will exist forever, they have been around for decades. It only applies to first time homebuyers so you would only be able to use it on a first home.

The grant with no payment will probably be gone within a few months, end of year at the latest. It has to be used at the time or closing so you would be in contract on something soon ideally.

If you have the ability to take advantage of the grant (income, FICO, etc) I would recommend it. If you are facing a situation where you don’t feel comfortable going that fast or you have a credit or income issue as far as how you are paid I would get with a lender today who is someone who does Rhode Island Housing a lot and they can put you on the right path. Rhode Island housing is pretty lax on there guidelines relative to some other equivalents in other states but deposits are a big thing for them so if you are depositing cash a lot that would be an issue.

Even if you miss the grant, the DPA is still a good program. If you need some help with a lender, let me know.

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mommy2boy OP t1_j5v4vws wrote

Thank you so much for the info I appreciate it!

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magentablue t1_j5w8j03 wrote

RI Housing does free “classes” you can take. We did it when we were first considering trying to buy a house and it was helpful. They give you a ton of info and can offer a bunch of resources (realtors, lenders, etc).

Some grants and programs require you take these classes to earn their certificate, which is why we’d signed up originally. Ours had a few q&a sessions as we covered all the topics.

Highly recommend if you haven’t taken them yet. There’s a class for single family home ownership and another for multi family or properties where you’d be a landlord.

https://www.rihousing.com/homebuyer-education/

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Zavehi t1_j5wfuhy wrote

These classes do provide a lot of good info, especially for people who have no previous experience in the homebuying process. They are also a requirement for a Rhode Island Housing loan, so getting done up front just saves some time.

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