RIHousing Extra Assistance Program | Rhode Island Housing...

RIHousing Extra Assistance Program 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 0% second mortgage up to $15,000 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.

• 0% second mortgage up to $15,000 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.