Buying a Home Gets Even Easier with Rhode Island Housing!
Buying a home these days is no easy feat. In addition to the price of the home itself – which can be extremely high – you can’t forget about legal fees, appraisal expenses, closing costs, and moving expenses. And given that incomes haven’t risen at nearly the same rate as the price of houses, affording a home can sometimes seem out of reach.
Here comes Rhode Island Housing to the rescue. Rhode Island Housing is an entity dedicated to helping Rhode Islanders afford a home sweet home. How they do that can vary; for example, they provide affordable mortgage programs, offer housing subsidies and grants to those who need it the most, and promote education so that home buyers can make the most financially prudent decisions.
Rhode Island Housing continually examines their programs and guidelines to make sure that they are addressing the needs of Rhode Islanders, and adds to or updates those programs when needed. And guess what? Rhode Island Housing has made some exciting new changes!
First Down Assistance Program
First, Rhode Island housing has created a new program, called First Down. It is intended to help solidify the housing demand in certain locations across Rhode Island as well as spur on homeownership opportunities for first-time homebuyers.
This program offers a five year down payment assistance loan up to $7,500. It is available to eligible home buyers who live in one of the following locations:
Of course, you need to understand the basic aspects of this homeownership program. First, your down payment assistance, which is forgivable, is structured as a loan that needs to be secured by a second mortgage. If you stay in the home where you used this down payment assistance for at least five years, then you don’t need to pay back the loan. However, if you sell, refinance, or stop using the home as your primary residence within that five-year span, then you will need to pay back a portion of the loan.
What’s more, you must provide a Uniform Residential Loan Application plus a fully-executed Purchase and Sales Agreement with a date of May 12, 2017 or later. Ask your mortgage lender, such as Shamrock Financial, about these documents.
Also note that if you already registered for a loan with Rhode Island Housing, then you are not eligible for this homeownership program.
Rhode Island Refinancing Program
What happens if you already have a mortgage, but you owe more than your home is already worth? You may feel stuck in financial quick sand. But Rhode Island Housing has a homeownership solution for you too. They now offer their new refinancing program. You could be eligible for up to maximum of $75,000 with the aim of lowering the amount that you owe on your underwater mortgage. This forgivable amount should help reduce your negative equity, and give you the opportunity to refinance your mortgage into a 30-year fixed rate mortgage product, called First Mortgage, offered by Rhode Island Housing. Refinancing has the extra advantage of potentially lowering your monthly payments, getting a lower interest rate, and making your financial situation easier to manage.
Shamrock Financial is Your Personal Financial Expert
Only certain mortgage lenders are allowed to provide the new First Down and Refinancing programs available from Rhode Island Housing, and Shamrock Financial is one of those lenders. We can review your situation, determine the best ways you can improve your finances, and suggest the mortgage products that are right for you. Just think of us as your personal financial expert. After all, we are home owners too!
Contact us today for more information about these new offerings from Rhode Island Housing, and get back on the path to financial health and happiness.