100% financing is still available for first-time home buyers in Rhode Island.

Posted by Lynda Mckenzie
July 13, 2009

First -time home buyers in Rhode Island looking for 100% financing, it is still available.  A first-time home buyer is defined as someone who has not owned real estate within the past three years.  Combine this with the $8,000 tax credit, there is no better time to purchase in Rhode Island then now.  *To take advantage of the $8,000 tax credit, you must close your new home by December 1, 2009.

For many Rhode Island home buyers, coming up with a down payment for a new home can be challenging.  You may be eligible for a  no-money down payment or grant offered through a state bonded program if you meet income requirements.  The program offers 30-year term mortgages at low interest rates.

Income limits are determined by the household size.  1 or 2 person household must not make more than $87,400.  If there are 3 or more in the household, the income cannot exceed $102,000.

 Example of interest rates for the 1% point program reflective of 7/09/09:

INCOME                              RATE                  APR

Up to $30,000                     4.250%             5.470%
$30,001 – 35,000 4.500%             5.620%
$35,001 – 40,000 4.750%             5.740%
$40,001 – 45,000 5.000%             5.820%
$45,000 – Limits 5.250%             5.870%

 

Purchase price limits are up to $417,000 for a single family or condominium.  Existing two to four family homes are also limited to $417,000.

First time home buyers will be required to take a home buyer education class. 

Other programs available for bank owned properties.

If you have questions or would like to apply, feel free to contact me at the number below.  I would be happy to help.

 

Lynda Mckenzie
Mortgage Master, Inc.
NMLS#: 137627
Direct: 401-524-9796
Email: lmckenzie@mortgagemasterinc.com
Web: www.mortgagemasterinc.com/lmckenzie
RI Loan Broker 95000655 / RI Lender License 2005 1976LL

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