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Down Payment and Closing Cost Assistance Programs

By Tiffany Raiford

Rhode Island residents looking to purchase their first home might put off the prospect of homeownership far longer than need be. Why? Because many homebuyers worry they cannot afford to pay for their down payment and/or their closing costs. It's an expensive endeavor and many people simply don't have the cash to handle one or both of these particular expenses. Fortunately, there are programs available to Rhode Island buyers who don't have the cash to pay their down payment or closing cost fees.

First Homes 100

The First Homes 100 program is available only to first-time homebuyers in Rhode Island. This particular state funding means buyers will not have to come up with a down payment on their first home. This works because the program offers 100 percent financing to those who qualify. Since most lenders only offer 80 percent of the loan value to buyers, a 20 percent down payment is required. Because this loan is 100 percent, no down payment is required.

Additionally, there is a First Homes option that allows buyers that do not qualify for 100 percent financing to qualify for a grant that helps to pay the cost of the required down payment. Depending on the qualifications of the buyer, this grant may or may not require repayment upon the early sale of your home.

Closing Cost Assistance

When applying for closing cost assistance, there are several considerations to make. For one, some programs require that you repay the cost of your closing costs if you sell your home within a specific amount of time. However, there are also grants available to buyers that do not require repayment.

First Homes offers a closing cost assistance program that is a type of loan. It's a very low-interest loan with a repayment period of 15 years. What this means for Rhode Island buyers is that the cost of the loan repayment will be exceptionally small broken down into a 15-year repayment program. This is why it is so affordable and a favorite program for Rhode Island homebuyers.

Buying a home should not be the hassle that it so often is. For many, the idea of paying so much money for a home in addition to paying all the costs and fees associated with buying the home is too much. Some people aren't even aware that help is available to Rhode Island residents. This information and these programs can help buyers realize their dream of homeownership without requiring them to go into more debt than they can comfortably afford.

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