{"id":2797,"date":"2023-02-20T10:00:00","date_gmt":"2023-02-20T15:00:00","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=2797"},"modified":"2024-04-25T23:18:09","modified_gmt":"2024-04-26T03:18:09","slug":"rhode-island-is-helping-people-buy-houses-and-condos","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/rhode-island-is-helping-people-buy-houses-and-condos\/","title":{"rendered":"Rhode Island Is Helping People Buy Houses and Condos"},"content":{"rendered":"\n
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The state of Rhode Island has just introduced an initiative to give $17,500 in down payment money to new buyers. Yes, that\u2019s a $17,500 grant to first-time homebuyers in Rhode Island. The reason? To ease the growing inequality in an increasingly exclusive real estate market<\/a>.<\/p>\n\n\n\n

U.S. homeownership seems to be turning into a privilege of the wealthy. And as Rhode Island\u2019s governor acknowledges, Rhode Islanders who own their homes are among the lowest percentage in the nation.<\/p>\n\n\n\n

Coming up with a down payment on a home is becoming too difficult, for too many. Gov. Daniel McKee describes the new initiative to assist modest-income home buyers as \u201can important boost for families looking to make their home in Rhode Island.\u201d<\/p>\n\n\n\n\n\n\n\n

By Tapping American Rescue Plan Act Funds, Rhode Island Can Offer a Borrower $17,500 in Grant Funds<\/h2>\n\n\n\n

In late January, Gov. Dan McKee announced the statewide down payment assistance grant.<\/em> Qualifying homebuyers can receive $17,500, thanks to the concern of the governor and state leaders about a major hurdle for hopeful home buyers: coming up with money for the down payment.<\/p>\n\n\n\n

Applicants can also apply the grant to other closing costs.<\/p>\n\n\n\n

Home buyers don\u2019t need to pay back the money to the lender or the state. That\u2019s right: No monthly payments to send in. In contrast to homeowner assistance initiatives elsewhere, Rhode Island\u2019s approval for funding is immediately forgivable. Otherwise, normal mortgage borrowing criteria apply.<\/p>\n\n\n\n

\u261b<\/em> Important note: <\/em><\/strong>This Rhode Island grant is a major boost for hopeful home buyers who lack sufficient cash to get over the down payment hurdle. That said, a loan applicant should always ask the mortgage representative whether using a special assistance program will change the interest rate on the loan. Even a small rise in the interest rate can add up to thousands of dollars over the life of the loan.<\/em><\/p>\n\n\n\n

Where is all this down payment support coming from? Federal pandemic funds. To offer help for people dealing with the unusual circumstances that arose with Covid-19, the federal treasury department has distributed money to states\u2019 fiscal recovery funds. In this case, Rhode Island has designated $30 million from federal American Rescue Plan Act<\/em> funds for Rhode Island housing affordability.<\/p>\n\n\n\n

Who Can Apply? And Where Do They Start?<\/h2>\n\n\n\n
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It\u2019s possible to apply online<\/a> for funding from Rhode Island\u2019s statewide initiative. Applicants start with the RI Housing and Mortgage Finance Corp. site.<\/p>\n\n\n\n

So, who can apply for Rhode Island mortgage assistance? A person or household that:<\/p>\n\n\n\n