If you or ANYONE you know is in the process of, or PLANS to be a FIRST-TIME homebuyer in Rhode Island THIS year then LISTEN UP!
Hi there everyone Tyler Meegan here with the Fitzpatrick Team out of RE/Max Professionals of Newport. Thanks for joining me today! Let’s get right to it….
Rhode Island Housing is giving away a GENEROUS grant to any and all 1st time home buyers who qualify, to assist with the out-of-pocket expenses due at the time of closing – Including but not limited to your mortgage down payment AND closing costs….
You may be saying to yourself, Tyler, I saw this on the news, I’ve seen the headlines – these programs come up every couple of years, they’re ONLY for people who DON’T have any savings and CAN’T afford a down payment – I probably don’t even qualify…
And to that I say, WRONG. Things are different this time around, so hear me out
Here’s what you’ve probably ALREADY heard…
$17,500 towards your mortgage down payment and closing costs
Minimum credit score of 660
Must meet income and other requirements…
Wonderful…NOW allow me to go into a little more detail on all of that, AND what you probably HAVEN’T heard
The maximum annual income requirements to qualify for an individual buyer, OR combined household income is $112,555. Yes, buying a house ON YOUR OWN or with a second buyer, – relative, friend, spouse, partner – who will be on the loan with you, are the same. NOW This is your reported annual income, and it’s worth noting that if you HAVE NOT already been pre-qualified by a mortgage expert, that what you actually “MAKE” each year, may very well EXCEED what is considered your ACTUAL, calculated annual income…. In other words, your CURRENT paycheck, and the money in your bank account may actually be me HIGHER than what a lending institution would consider your “individual or combined annual income” …SO again, if you have NOT been pre-qualified by a mortgage lender, do not count yourself out , based on this requirement alone just YET.
The Maximum purchase price is $546,752. I don’t know who the heck came up with this figure, it wasn’t me – so please don’t shoot the messenger OK?…..Anyway, this is ABOVE the current median sales price of all residential properties in the state of RI. Which means, if you’re taste in properties exceeds this price point, it may be worth considering that it would be a WISER investment to buy your “STARTER HOME” at a more reasonable, affordable price, knowing it will only INCREASE in value by roughly 20-25% in only a few years, and use THAT equity to sell, and roll into a NEWER more LONG TERM or forever home – down the road.
Alright I’ve saved the BEST for LAST – This grant is NOT only applicable to those who do NOT have the funds set aside for their down payment – but it can be COMBINED with the money you already have set aside. This is HUGE! In the past, 1st time home buyer grants were issued ONLY to supplement the entirety of the down payment on your 1st time home buyer loan (AKA an FHA loan) which equates to 3.5% of the total purchase price. NOW, you can use this down payment assistance and COMBINE it with your current savings for a down payment.
SO whether you qualify for an FHA loan but don’t have the savings for a down payment, OR you qualify for a conventional loan, but need some help to bridge the gap on your out-of-pocket expenses to pay for your down payment or just closing costs, you can allocate these funds accordingly.
Lastly , this grant is not ONLY to single family homes, but ALSO to owner occupied Multi-Family, as well as Condo purchases. It’s ALSO applicable to multiple loan types, as I mentioned, FHA buyers, but also conventional loans, and even USDA loan buyers.
If you’re a 1st time home buyer and are started from GROUND ZERO, or have ALREADY been pre-qualified and have yet entertained factoring this grant into your home purchase, I STRONGLY urge you to do so.
If you need ANY guidance from an expert Realtor who specializes in 1st time home buyers, I know a guy…. (Look around) It’s ME ok, I’m talking about me….OR you need a referral for a mortgage lender, I’d be able to link you up with one of our trusted lending partners.
There’s a LIMITED amount of funds available for this grant, and I don’t want anyone to miss out on this AMAZING opportunity – All my information is below, so please don’t hesitate to reach out – and if you liked this video be sure to like and subscribe to this channel!