Rhode Island FHA Loans

If you are thinking about moving to Rhode Island, right now is a great time to apply for an FHA loan. The Federal Housing Administration (FHA) and US Department of Housing and Urban Development (HUD) have been helping Americans afford homes for over seventy years. The FHA home loan program has accomplished this by granting huge benefits to those who qualify.

What are the benefits?

One of the greatest benefits of a Rhode Island FHA loan is the low down payment feature. With a conventional loan you can expect to pay around 20%, whereas the FHA only requires a 3.5% down payment. Other benefits include low interest rates, easy approval and streamline refinancing.

Is it a gift?

No. Just as with any loan, you are required to pay the money back overtime. The money you receive will come from a private lender such as a bank, savings and loans association or mortgage company. The FHA does not issue the money; rather, they insure the loan for you.

What if I can’t afford the down payment?

If you can’t afford the 3.5% down payment, there are a few options you can look into. The first is to try and find the money from another source. The FHA does not care where the money comes from, so you can have your employer, friend or charitable organization provide the down payment. Alternatively, you can apply for the American Dream Down payment Initiative (ADDI) which will cover the cost for you.

How do I qualify?

In order to qualify for an FHA loan you will need to provide financial documents such as credit scores, bank balances and employment history. Even though you will be approved based on this information, the standards are much more lenient than with conventional loans. Even people with less than perfect credit can be approved for a loan.

Where do I start?

You can get started today by being pre-approved for a loan. With a pre-approval you will be able to know how much house you can afford and whether or not you meet the lender’s requirements.

To get started, fill out our secure online form. The pre-approval process is fast, simple, free and has no obligation. Getting pre-approved for a Rhode Island FHA loan has never been easier!

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