RIHousing 203k Purchase-Renovation Loan | Rhode Island Ho...

RIHousing 203k Purchase-Renovation Loan is administered by RIHousing to help Rhode Islanders overcome the

most common barriers to homeownership, maintenance, or energy‑efficiency upgrades. The program pairs

affordable fixed‑rate financing with varies to reduce upfront costs or fund critical repairs. Applicants

complete HUD‑approved homebuyer education and benefit from one‑on‑one counseling provided by RIHousing partner

agencies. Funds are limited and released on a first‑come, first‑served basis through participating lenders

statewide. Borrowers may layer assistance with federal Mortgage Credit Certificates, local grant programs, or

weatherization rebates to maximize savings. Homes must meet RIHousing health‑and‑safety standards, and

contractors are vetted through a bid process to ensure quality renovation work. The program is especially

valuable in high‑cost coastal counties where median home prices often exceed $400,000.

• U.S. citizen, permanent resident, or qualifying non‑citizen.

• Household income ≤ RIHousing limits (e.g., $112,555 for a 2‑person household in Providence County, 2025).

• Purchase price ≤ $546,752 (single‑family) or FHA county limit, whichever is lower.

• Minimum 620 credit score (680 for conventional loans).

• Debt‑to‑income ratio ≤ 45 % (manual underwriting up to 50 % with compensating factors).

• Completion of 8‑hour HUD‑approved homebuyer education and RIHousing post‑purchase counseling.

• Owner‑occupancy within 60 days of closing; no short‑term rentals allowed.

• Varies applied toward down payment, closing costs, or qualified repairs.

• 30‑year fixed‑rate mortgage at or below market.

• No prepayment penalty or recapture tax after 10 years.

• Eligible for Mortgage Credit Certificate tax savings.

• Free post‑closing budget coaching and foreclosure‑prevention hotline.

1. Pre‑qualify with an RIHousing‑approved lender; provide pay stubs, W‑2s, and bank statements.

2. Education & counseling – complete a HUD‑certified course and obtain a certificate.

3. Loan reservation – lender locks rate and reserves assistance funds via the RIHousing portal.

4. Appraisal & inspection – property must meet FHA/USDA standards; rehab bids collected if applicable.

5. Closing – sign first‑mortgage and subordinate lien documents; assistance funds disbursed.

6. Post‑purchase – occupy the home within 60 days; comply with periodic verification if using grant forgiveness.